Econ Mid Term 2

An economy has two workers. What is the opportunity cost for RICARDO to produce one shirt?

1/2 computer

An Economy has two workers, Paula and Ricardo . What is the opportunity cost for PAULA to produce one shirt?

1/4 computer

If this is an open economy, the price of a car will be

10,000 per car

At the price of 4$ per pound, sellers offer _______ pounds of oranges per day, and buyers want to purchase _______pounds of oranges a day.

10,30

In general, when the price of a variable factor of production increases:

the profit-maximizing level of output falls.

The demanded for microwaves in a certain country is given by ... Suppose the economy is closed, the equilibrium price of a microwave is _______ and the equilibrium quantity is

$100;5000

What is the Elasticity at point A ?

1

what is the amount of tariff imposed on a ton of sugar?

1,000

If this is a closed economy, what will the price of a bike be?

100 Ducks

What is the price of a TV in an open economy with a quota?

125$

What is the price of cars if this were a closed economy?

14,000percar

If the market consist of 50 identical sellers, how much would be supplied in the market at a price of 14$ per unit?

17,500

An Economy has two workers.. Paula and Ricardo. What is the opportunity cost for Riccardo to produce one computer?

2 shirts bitch

The demand for microwaves.. How many microwaves will be imported or exported?

2,000 imported

In an open economy, the quantity demanded of bikes in the domestic market is

20,000 demanded quantity

When ACME dynamite produces 250 units output, its profit is:

3,750

an economy has two workers. What is the opportunity cost for Paula to produce on computer?

4 Shirts

The amount of revenue the government collects after imposing the tariff is _____

40,000 Ducks

How many cars will this country import in an open economy situation?

40,000 cars

Last Year Christine worked as a Consultant. Last year, Christine's accounting profit was ________ and her economic profit was ________

49,000 and 9,000

The demanded for microwaves. The domestic quantity demanded will be ________ and quantity supplied will be ____

6,500;4,500

In an open economy, how many bikes will this country export?

60,000 bikes

after imposition of the quota, the QUANTITY demanded of tvs is

80 (thousand)

After imposition of the quota, the numbers of tvs imported will DROP by

80 (thousands)

If Allie has an absolute advantage over beth in preparing meals, then

Ally can prepare more meals in a given time period then Beth

If all firms in a perfectly competitive industry are earning a normal profit, then:

There is no incentive for firms to enter or exit the industry

Superstar professional athletes can sustain their economic rent because

They have unique talents that they can sell to the highest bidder.

Australia is a net exporter of wool, free trade will benefit the :

Domestic Producers

Opening this economy to trade would benefit ____________ and harm ________

Domestic car consumers ; domestic car consumers

Which of the following is NOT a characteristic of a perfectly competitive market?

Each firm in the market sells a somewhat different variant of the good.

Generally, _______ motivates firms to enter an industry, while _________ motivates firms to exit an industry

Economic Profit, Economic Loss

A firm earns a normal profit when its:

Economic profit is zero

A cost-saving innovation in a perfectly competitive industry will lead to:

Economic profits for a few firms for a short time.

Larry has a comparative advantage over his classmates in writing term papers if he

Has a lower opportunity cost of writing term papers then his classmates.

If the market for mugs is perfectly competitive, and mugs sell for 7.50 each then Chris should make how many mugs a day?

He should make 4

Mary Jane is willing to babysit for 6$ an hour. her neighborh asked her to babysit for 8$.. assuming she accepts the offer

Her economic rent will be 2$ per hour

A price-taker faces a demand curve that it:

Horizontal at the market price

If it is possible to make a change that will help some people without harming other, then the sitiuation is

Inefficient

If a one percent increase in the price of oranges leads to a five percent increase in the quantity supplied, the price elaterm-39sticity of supply for oranges is ______.

It is 5

John is trying to decide how to divide his time between his job as a stocker in the local grocery store which pays term-257$ for as many hours as he chooses. He can also make 2$ by cleaning windows. what the opportunity cost of cleaning windows for an hour?

It would be 7$

A profit-maximizing firm will only produce a positive amount of output if

It's total revenue is greater than or equal to its variable cost.

If the lemonade market is perfectly competitive and jenny is charging the equilibrium price then jenny can increase her revenue if she..

Keeps the price of her lemonade the same and increases the output.

According to the law of diminishing returns, when some factors of production are fixed, in order to increase production by a given amount a firm will eventually need to add successively:

Larger and Larger Quantities of the variable factors of productions.

In general, perfectly competitive firms maximize their profit by producing the level of output at which

Marginal cost equals price.

The primary objective of most private firms is to

Maximize Profit

Adam Smith coined the term "invisible hand" tterm-34o describe the process by which the actions of independent, self-interested buyers and sellers will:

Often lead to the most efficient allocation of resources.

A seller's supply curve shows the seller's..

Opportunity cost of producing an additional unit of output at each quantity

The Cost-Benefit Principle tells us that a firm should continue to expand production as long as:

Price of the good is greater than marginal cost.

Oil and oil products remain the main fuel for cars, planes, ships and powerplants. The amount of oil still in the earth is finite. Given this information, the supply of gasoline is....

Relatively inelastic

An economy has two workers. _________ has the comparative advantage in computers and ________ has the comparative advantage in shirts.

Ricardo then Paula

Suppose all firms in a perfectly competitive industry are earning an economic profit. Over time # of industry's will ____________ and market price will_______

Rise, Fall

If a firm's total revenue is less than its variable cterm-35ost when the firm produces the level of output at which price equals marginal cost, the firm should:

Shut Down

When more firms enter an industry:

The industry supply curve will shift right.

Which of the following is the most likely to be a fixed factor of production at a farm?

The land of which the farm is located

If the market supply curve does not capture all of the costs to society of producing an additional unit of good then,,,,

The market equilibrium will not be effecient.

Demand fully reflect all of the costs and benefits associated with production and consumption then the total economic surplus is maximized when:

The market is in equilibrium

In general, when the price of a fixed factor of production increases...

The profit-maximizing level of output does not change.

Suppose a government is considering imposing either a tariff or a quota on imported grain, and either policy will result in exactly 750 tons of grain being imported. How do these policies differ?

The quota will generate revenue for the firms that hold import licenses, while the tariff will generate revenue for the government.

Suppose a government is considering imposing either a tariff or a quota on imported grain. How do these policies differ?

The quota will generate revenue for the firms that hold import licenses, while the tariff will generate revenue for the government.

In general, individuals and nations should specialize in producing those goods for which they have a(n):

comparative advantage

The allocative function of price is to

direct resources away from markets that are overcrowded and toward markets that are underserved.

In the long run, in a perfectly competitive industry:

economic profit and loss are driven to zero by entry exit.

Free trade is _____________, because it _____________ the size of the pie available to the economy.

effecient;increases

The most important challenge facing a firm in a perfectly competitive market is deciding

how much to produce

Economic theory assumes that a firm's goal is to

maximize it's economic profit

If the price of a good in a closed economy is greater than the world price, then if the country opens its markets to world trade the country will be a ______+ of that good

net Importer

Suppose all firms in this industry have identical costs to this firm and are producing 15 units of output. One can predict that ...

new firms will enter the industry.

A legal limit on the quantity of a good that may be imported is called a(n)

quota

a legal limit on the quantity of a good that may be imported is called a

quota

If atlantis has an open economy, then it

trades with other countries

The price at which a good or service is traded on international markets is called the _________ price

world