Micro Final

The TVC of 11 units is $100. The TVC of 12 units is $120. The marginal cost of the twelfth unit is... a. $ 60 b. $10 c. $120 d. $20

$20

Use the table below to answer the next two questions (9 and 10) Number of Workers 1, 2, 3, 4, 5 Marginal Product 19, 26, 24, 20, 18 10. Average product, if there are three workers employed, is a. 24 units b. 23 units c. 26 units d. 8 units

23 units

Four workers produce 150 units of output and five workers produce 182. The marginal product of the fifth worker is a.32 units of output b. 4 units of output c. 20 units of output d. 36 units of output

32 units of output

Use the table below to answer the next two questions (9 and 10) Number of Workers 1, 2, 3, 4, 5 Marginal Product 19, 26, 24, 20, 18 9. Total product, if four workers are employed, is a. 20 units of output b. 107 units of output c. 89 unites of output d. 69 unit of output

89 unites of output

Use the information below to answer the next two questions (17 and 18) Russell plans on opening a car wash. He finds four distinct methods of production that produce the same result. Technology: A, B, C, D Units of Capital: 2,4,6,8 Units of labor: 20,15,11,8 17. If the hourly price of a unit of capital is $60 and the hourly wage is $ 6, which production technology should Russell choose in order to minimize costs? a. A b. B c. C d. D

A

Along a production possibilities curve, an increase in the production of one type of good can be accomplished only by a. An increase in the production of the other type of good b. A decrease by the production of the other type of good. c. An increase in the consumption of the other type of good d. A decrease in the consumption of the other type of good

A decrease by the production of the other type of good.

"Lower ticket prices would lead to more people attending ball games." This statement is a. A ceteris paribus assertion b. A normative statement c. A positive statement d. A macroeconomic statement

A positive statement

An undergraduate student pays $ 475 for a three- credit course at Medgar Evers College. After the official withdrawal date has elapsed, he drops the course (and cannot get back the $475). At this time, the $ 475 represents a. The benefit of gaining some knowledge from the course partially attended b. An expenditure made on the margin c. A sunk cost d. The opportunity cost of the course

A sunk cost

In the short run, which of the following is possible? a. AFC may be greater than ATC b. MC may intersect ATC when ATC is decreasing c. AFC may be greater than AVC d. TFC falls as output rises

AFC may be greater than AVC

A surplus of a product will arise when price is a. Above equilibrium with the result that quantity demanded exceeds quantity supplied. b. Above equilibrium with the result that quantity supplied exceeds quantity demanded. c. Below equilibrium with the result that quantity demanded exceeds quantity supplied. d. Below equilibrium with the result that quantity supplied exceeds quantity demanded.

Above equilibrium with the result that quantity supplied exceeds quantity demanded.

What is the difference between accounting profit, economics profit, and normal profit?

Accounting Profit= Total Revenue - Explicit Costs Economics Promit= Total Revenue (TR) - Total Costs (TC) Normal Profit= Total Revenue (TR) - Accounting expenses

According to the text, the reason to study economics a. To learn a way of thinking b. To understand society and global affairs c. To be an informed voted d. All of the above

All of the above

Among the fundamental concepts in economics are a. Opportunity Costs b. Efficient markets c. Marginalism d. All of the above

All of the above

Which of the following is a consequence of rent controls established to keep housing affordable for the poor? a. Less rental housing is available as prospective landlords find it unprofitable to rent at restricted prices. b. The quality of rental housing declines as landlords lack the funds and incentive to maintain properties. c. Apartment buildings are torn down in favor of office buildings, shopping malls, and other buildings where rents are not controlled. d. All of the above are consequences of rent controls.

All of the above are consequences of rent controls.

1. Which of the following is most likely to reach the long run soonest a. An ice cream vendor b. An aircraft manufacturer c. A private college d. A state university

An ice cream vendor

The law of diminishing returns a.Applies in the short run but not in the long run b.Requires that all factors of production must diminish in equal proportions c.Requires that all factors of production must diminish in unequal proportions d.States that marginal product must always be less than average product

Applies in the short run but not in the long run

The "Law of Demand" implies that a. As prices fall, demand increases b. As prices rise, demand increases c. As prices fall, quantity demanded increases d. As prices rise, quantity demanded increases

As prices fall, quantity demanded increases

The firm is at the output level where marginal cost intersects average variable cost. We can infer that a. Average variable cost is rising b. Average variable cost is falling c. Average total cost is failing d. Average total cost is rising

Average total cost is failing

Which of the following is a characteristic of pure monopoly? a. Close substitute products b. Barriers to entry c. The absence of market power d. "Price taking"

Barriers to entry

By consumer sovereignty we mean that a. Government is responsible for protecting consumer interests. b. Consumers determine what goods and services are produced. c. Businesses decide what the consumer will buy. d. All goods and services are produced by consumers.

Businesses decide what the consumer will buy.

The term dollar votes means a. Consumers vote for certain products to be produced by how they spend their incomes. b. Households vote what companies is to be opened in their neighborhood c. Consumer vote how the government is to spend their tax dollars d. Households vote on where the products are to be made

Consumers vote for certain products to be produced by how they spend their incomes.

Consumers expect their income to rise. For a normal good, this would result in an increase in a. Quantity demanded and a fall in price b. Demand in fall in price c. Quantity demanded in rise in price d. Demand and a rise in price

Demand and a rise in price

The quantity demanded of a product increases as its price declines because the a. Lower price shifts the demand curve rightward. b. Lower price shifts the demand curve leftward. c. Lower price results in an increase in supply d. Demand curve is downward sloping.

Demand curve is downward sloping.

An increasing-cost industry experiences external----- of scale and had an------ long-run industry supply curve a. Economies; upward sloping b. Economies; downward sloping c. Diseconomies; upward sloping d. Diseconomies; downward sloping

Diseconomies; upward sloping

Which of the following is not a criterion for judging the result of an economic policy a. Stability b. Employment c. Efficiency d. Equity

Employment

Which expression is another way of saying "marginal benefit"? a. Benefits given up b. Unintended gain c. Employment benefits d. Extra benefit

Extra benefit

If the market is in equilibrium, a technological improvement will cause price to------------and quantity demanded to -------------- a. Fall; fall b. Rise; rise c. Fall; rise d. Rise; fall

Fall; rise

In the short run which of the following is incorrect a. Existing firms cannot leave the industry b. New firms cannot enter the industry c. The firm is operating under a fixed scale of production d. Firms have no variable factors of production

Firms have no variable factors of production

Which of the following statements is true about fixed cost? a. Fixed costs increases as time goes by b. Average fixed cost graphs have a U- Shape curve c. Fixed costs are zero in the long run d. Fixed cost are zero when the firm decides to produce no output

Fixed costs are zero in the long run

Because the nation N is operating at a point inside its PPF, it a. Has full employment b. Has unemployed or inefficiently employed resources c. Must cut output of one good to increase the production of another d. Will be unable to experience economic growth

Has unemployed or inefficiently employed resources

Which of the following is a positive statement? a. There should be no unemployment in an advanced industrial society. b. Higher prices cause consumers to purchase less. c. Consumption should be distributed fairly in society. d. People should pollute as little as possible

Higher prices cause consumers to purchase less.

The demand curve faced by a perfectly competitive firm is a. Always downward b. Horizontal c. Perfectly inelastic d. Downward sloping if the law of demand applies

Horizontal

He skipped 103

Ignore

An increase in demand for oil along with a simultaneous increase in supply of oil will a. Decrease price and increase quantity. b. Increase price and decrease quantity. c. Increase quantity, but whether it increases price depends on how much each curve shifts. d. Increase price, but whether it increases quantity depends on how much each curve shifts.

Increase quantity, but whether it increases price depends on how much each curve shifts.

ABC Corp. cuts usage of all inputs by 50%. Production falls by more than 50 %. This firm is experiencing a. External economies of scale b. External diseconomies of scale c. Increasing returns to scale d. Decreasing returns to scale

Increasing returns to scale

As a consequence of the condition of scarcity a. There is never enough of anything. b. Production has to be centrally planned. c. Things which are plentiful have relatively high prices. d. Individuals and communities have to make choices from among alternatives.

Individuals and communities have to make choices from among alternatives.

The return on investment that is just sufficient to satisfy the owners of a business is called a. Normal profit b. Marginal profit c. Economic profit d. Excess profit

Normal profit

The Production Possibility Frontier is used to illustrate the concept of a. The laissez-faire economy b. Opportunity costs c. Equilibrium d. aggregate demand

Opportunity costs

At the current of production level, ATC is increasing. Of the following situations, we should consider increasing production if a. Price is less than average total cost b. Price is greater than average total cost c. Price exceeds average variable cost, but less than average cost d. Price is equal to average total cost.

Price is greater than average total cost

The supply of labor is defined as the relationship between the real wage and the a. Quantity of labor supplied by firms b. Amount of jobs supplied by firms c. Quantity of labor supplied by households d. Amount of jobs supplied by households

Quantity of labor supplied by households

Along a given supply curve for eggs, a. Supply increases as price increases b. Supplies increases as technology improves c. Quantity supplied increases as price increases d. Quantity supplied increases as technology improves

Quantity supplied increases as price increases

In the short- run perfectly competitive equilibrium, each of the following conditions will hold, except a. P= MR b. P= SRMC c. LRAC is minimized d. SRMC is minimized

SRMC is minimized

As technology advances, a. All opportunity cost decreases b. The PPF shift outward c. A country moves toward the midpoint along its PPF d. All opportunity costs increase

The PPF shift outward

Of the following, which is most likely to be a variable cost? a. The wage of a security guard b. The firm's rent on its factory building c. The firm's electricity bill d. The firm's interest payment on a bank loan

The firm's electricity bill

A rightward shift in the supply of U.S. cars might be due to a. An increase in the price of steel b. A reduction in foreign competition c. The introduction of cost-saving robots d. Increased popularity of foreign cars

The introduction of cost-saving robots

The short run supply curve for a perfectly competitive firm is upward sloping because, as production increases, a. The form must pay higher hourly wages b. Total fixed costs increases c. The firm is able to assign its workforce to specialized tasks d. The marginal productivity of additional workers decreases

The marginal productivity of additional workers decreases

The opportunity cost of choice X can be defined as a. The cheapest alternative to choice X b. The most highly valued alternative to choice X c. The price paid to obtain X d. The most highly price alternative to choice X

The most highly valued alternative to choice X

The perfectly competitive firm has no choice regarding a. The price that may be charged b. How much output to produced c. The choice of technology d. How much of each input to hire

The price that may be charged

A production possibility frontier diagram illustrates all of the following concepts except a. Scarcity b. Unlimited wants c. Constrained choice d. the marginal rate of transformation

Unlimited wants

In the short run, a perfectly competitive firm incurring losses should still produce if it can cover its a. Average costs b. Variable costs c. Fixed costs d. Economic costs

Variable costs

Laissez-faire capitalism is characterized by a. Very limited government role in the economy. b. Active government intervention in the economy. c. Individuals and firms abiding by a government economic plan. d. A very fair distribution of income and wealth.

Very limited government role in the economy.

Which is one of the three fundamental questions that need to be dealt with in any economic system? a. What makes the rate of unemployment low? b. Who will be the richest group in the economy? c. What goods and services will be produced? d. How high should the prices of goods and services be?

What goods and services will be produced?

Each of the following is decision that must be made by a perfectly competitive firm except a. Which price level to set for its output b. How much of each input to demand c. How to produce its output d. How much output to supply

Which price level to set for its output

The term oligopoly indicates a. a one-firm industry. b. many producers of a differentiated product. c. a few firms producing either a differentiated or a homogeneous product. d. an industry whose four-firm concentration ratio is low.

a few firms producing either a differentiated or a homogeneous product.

Generic aspirin is an inferior good. As Julie's income decreases we would expect a. a decrease in Julie's demand for generic aspirin b. an increase in Julie's quantity demanded of generic aspirin c. an increase in the Julie's demand for generic aspirin d. a decrease in Julie's quantity demanded of generic aspirin

an increase in the Julie's demand for generic aspirin

Economists would describe the U.S. automobile industry as a. purely competitive. b. an oligopoly. c. monopolistically competitive. d. a pure monopoly

an oligopoly

An industry has external economies of scale. In the long run, an increase in demand will A. decrease price B. Increase price C. Not change price D. Cause an indeterminate change in price

decrease price

Economic profits are calculated by subtracting

explicit and implicit costs from total revenue.

HE SKIPPED 111 too

ignore

An efficient market is a market a. that is always in equilibrium b. in which profit opportunities are eliminated almost instantaneously c. in which the profits are always very high and persistent d. in which opportunity costs are zero

in which profit opportunities are eliminated almost instantaneously

The demand curve is best illustrated by a. the price of pepsi rises leading customers to buy more coke b. increase purchases of coke as the price of coke decreases c. an increase in income, which results in reduced purchases of soft drinks d. an increase in income, which results in n increased purchases of coke

increase purchases of coke as the price of coke decreases

College students living off campus frequently consume large amounts of ramen noodles and boxed macaroni and cheese. When they finish school and start their careers, their consumption of both goods frequently declines. This suggests that ramen noodles and boxed macaroni and cheese are a. Superior goods b. Inferior goods. c. Consumer goods d. Producer goods

inferior goods.

An industry having a four-firm concentration ratio of 85% a. approximates pure competition. b. is monopolistically competitive. c. is a pure monopoly d. is an oligopoly.

is an oligopoly.

Which is not a factor of production? a. Money b. Land c. Labor d. Capital

money

The restaurant, legal assistance, and clothing industries are each illustrations of a. countervailing power. b. homogeneous oligopoly. c. monopolistic competition. d. pure monopoly.

monopolistic competition.

The long run is characterized by a. the relevance of the law of diminishing returns. b. at least one fixed input. c. insufficient time for firms to enter or leave the industry. d. the ability of the firm to change its plant size.

the ability of the firm to change its plant size.

Among a given demand curve for corn, which of the following is not held constant a. the price of corn b. the income of corn farmers c. the income of corn demanders d. the price of wheat

the price of corn

Which of the following is not one of the basic economic questions? a. what will be produced b. how will it be produced c. where would it be produced d. for whom will it be produced

where would it be produced

Ms. Prudence Juris decides to open a law office. She quits her job as an assistant district attorney where she earned an annual salary of $ 25,000. She borrows $ 50,000 at 10% annual interest, hires a secretary at $20,000 per year and rents office space at $55,000 per year. During her first year, she receives revenues of $100,000. What is her economic profit? a. $ 20,000 b. Zero, but she earns a normal or accounting profit c. - $5000 d. -$50,000

- $5000

Use the information below to answer the next two questions (17 and 18) Russell plans on opening a car wash. He finds four distinct methods of production that produce the same result. Technology: A, B, C, D Units of Capital: 2,4,6,8 Units of labor: 20,15,11,8 18. Which is the most labor-intensive method of production? a. A b. B c. C d. D

A

The Soviet Union economy of the 1980s would best be classified as a. A market system. b. Pure capitalism. c. Laissez-faire capitalism. d. A command system.

A command system.

Which of the following would an economist classify as capital? a. A deposit of silver b. A share of stock c. A public corporation's employees d. A computer used by an accountant

A computer used by an accountant

Use your basic knowledge and your understanding of market structures to answer this question. Which of the following companies most closely approximates a differentiated oligopolist in a highly concentrated industry? a. Subway Sandwiches b. Pittsburgh Plate Glass c. Ford Motor Company d. Kaiser Aluminum

Ford Motor Company

Suddenly there is an increase in the demand for Frisbees. The most likely result would be a. Higher prices in the short run, followed by an increase in production in the long run that would cause prices to decline somewhat b. Higher prices in the short run, followed by larger long-run price increases as the stock of Frisbees is depleted c. Higher prices in the short run because of greater sales volume, and even higher prices later on as plant sizes are increased. d. Lower prices in the short run because of higher sales, but higher prices in the long run as the stock of Frisbees is depleted

Higher prices in the short run, followed by an increase in production in the long run that would cause prices to decline somewhat

A perfectly competitive decreasing-cost industry in long-run equilibrium experiences a permanent decrease in market demand. When the industry reaches its new long-run equilibrium, the equilibrium price of its good will be--- than before and the equilibrium industry will be--- than before a. Higher; higher b. Higher; lower c. Lower; higher d. Lower; lower

Higher; lower

The firm's total curve is a straight line sloping up to the right. The marginal cost curve is a. Upward sloping as output increases b. Downward sloping as output increases c. Horizontal d. Horizontal and equal to zero

Horizontal

The circular flow model a. Illustrates the interdependence of businesses and consumers. b. Explains how goods are produced and consumed c. Justifies the agreement between buyers and sellers to get the market at equilibrium. d. Explains the importance of firms and households.

Illustrates the interdependence of businesses and consumers.

A nation can increase its production possibilities by a. Shifting resources from investment good production to consumer good production. b. Shifting resources from private goods to public goods. c. Improving labor productivity. d. Eliminating discrimination.

Improving labor productivity.

Union introduced new costly regulations in the tuna market to protect workers. We would expect the equilibrium cost of tuna to---------- and the equilibrium quantity of tuna to------ a. Increase; increase b. Increase; decrease c. Decrease; increase d. Decrease; decrease

Increase; decrease

1. Andy increases the amount of capital his workers use. The average product of labor will---- and the marginal product of labor will----- a. Increase; increase b. Decrease: decrease c. Increase: decrease d. Decrease; increase

Increase; increase

Because of the law of diminishing returns, the general appearance of the production function graph is that a. Increases at an increasing rate b. Increases at a decreasing rate c. Decreases at an increasing rate d. Decreases at a decreasing rate

Increases at a decreasing rate

The study of economics: a. Is a very narrow endeavor b. Is a way of analyzing decision-making processes caused by scarcity. c. Is concerned with providing that capitalism is better than socialism d. Focuses on how a business should function

Is a way of analyzing decision-making processes caused by scarcity.

ABC Corporation and XYZ Corporation have identical total variable costs. ABC's total fixed costs are $10,000 per month higher that XYZ's are. ABC's MC curve a. Is identical to that of XYZ b. Has the same shape, but is higher than that of XYZ c. Has the same shape, but is lower than that of XYZ d. Is higher than that of XYZ, and need not have the same shape

Is identical to that of XYZ

HAL Corporation, a perfectly competitive firm is currently producing 20 units. The price is $10 per unit, total fixed costs are $ 10, and average variable costs are $3. The firm... a. Is making a total profit of $130 b. Is maximizing profit c. Is making a loss of $3 per unit d. Is making a profit of $7 per unit

Is making a total profit of $130

A firm will not produce where MR=MC when a. It is earning positive economic profit b. It is making an operating loss c. It is earning negative economic profits d. It is making an operating profit

It is making an operating loss

If a country is operating at a point of production efficiency a. It enjoys growth when increasing production b. It produces on its production possibility frontier curve c. It must specialize in the production of a good d. It cannot be producing at its point of comparative advantage

It produces on its production possibility frontier curve

Which of the following statements applies to a purely competitive producer? a. It will not advertise its product. b. In long-run equilibrium it will earn an economic profit. c. Its product will have a brand name. d. Its product is slightly different from those of its competitors.

It will not advertise its product

For Jill to have a comparative advantage in the production of pins means that, relative to Jack, with the same resources a. Jill is relatively better at producing pin than at producing needles b. Jill is relatively better at producing both pins and needles c. Jill can produce fewer needles than Jack can produce d. Jill can produce more pins than jack can produce

Jill is relatively better at producing pin than at producing needles

Jenny's Gemstones is making an operating loss. The industry supply curve will shift --- in the --- a. A right; short run b. Right; long run c. Left; short run d. Left; long run

Left; long run

1.If diminishing returns have set in, a firm that doubles the number of workers will see total production a. Decrease b. Less than double c. More than double d. Decrease by 50%

Less than double

In the short run, profits will be maximized at the output level where' a. Price is equal to marginal revenue b. Marginal cost is equal to average variable cost (which is when AVC is minimized) c. Average total cost is minimized (and is equal to marginal cost) d. Marginal cost is equal to price (which is equal to marginal revenue)

Marginal cost is equal to price (which is equal to marginal revenue)

In the short run, profits will be maximized at that output level where a. Total revenues are maximized b. Total costs are minimized c. Marginal costs marginal revenues are equalized d. Variable costs are minimized

Marginal costs marginal revenues are equalized

When marginal product is zero, total product is---- and average product is ---- a. Maximized; maximized b. Maximized; decreasing c. Decreasing; maximized d. Decreasing; decreasing

Maximized; decreasing

To help unscramble cause and effect, economists a. Must use the ceteris paribus assumption b. Use the concept of opportunity cost c. Answer the "what, how and for whom" questions d. Answer the "why" question

Must use the ceteris paribus assumption

Jean &co has an increasing cost production possibility frontier. Its slope must be a. Positive and increasing b. Positive and decreasing c. Negative and increasing d. Negative and decreasing

Negative and increasing

For most products, purchases tend to fall with decreases in buyers' incomes. Such products are known as a. Inferior goods or giffen goods b. Direct goods. c. Average goods. d. Normal goods or superior good.

Normal goods or superior good.

"We have to decrease our dependence and consumption of fossil oil" is a----------- statement whereas "our decreased dependence and consumption of fossil oil will decrease our footprint on the environment" is a ------------ statement. a. Positive & True b. Normative & Positive c. Negative & Positive d. Positive & Normative

Normative & Positive

That which we forgo, or give up, when we make a choice or decision is called a. Sunk costs b. Marginal cost c. Real costs d. Opportunity costs

Opportunity costs

Economics is the study of how a. Scarce resources are used to satisfy unlimited wants b. Human choose to use unlimited resources c. Limitless resources are used to satisfy scarce wants d. Society has no choices

Scarce resources are used to satisfy unlimited wants

.The concept of opportunity cost is based on the principle of a. Need b. Consumption c. Scarcity d. Profit

Scarcity

Jenny's Gemstones is making an operating loss. It should---- in the long run and ---- in the long run a. Shut down; leave the industry b. Leave the industry; shut down c. Increase its price; leave the industry d. Increase its price; reduce production

Shut down; leave the industry

Encouraging international trade will a. Slow economic growth when a country is forced to specialize and trade with other countries b. Slow economic growth as many workers lose their jobs to foreign workers c. Speed economic growth as workers diversify their knowledge and limit trade d. Speed economic growth as workers specialize and trade with others

Speed economic growth as workers specialize and trade with others

Encouraging international trade will a. Slow economic growth when a country is forced to specialize and trade with other countries b. Speed economic growth as workers diversify their knowledge and limit trade c. Speed economic growth because international trade limits the harm done by property rights d. Speed economic growth as workers specialize and trade with others

Speed economic growth as workers specialize and trade with others

The price of Good C increases and as a result, the demand for good D increases. The two goods are a. Complement b. Substitutes c. Normal d. inferior

Substitutes

Households are a. Suppliers in the input market b. Demanders in the labor market c. Suppliers in the product markets d. Demanders in the input market

Suppliers in the input market

If the government increases unemployment benefits, then labor a. Demand curve shifts rightward b. Demand curve shifts leftward c. Supply curve shifts rightward d. Supply curve shifts leftward

Supply curve shifts leftward

Carlo discovers when he studies for his macroeconomics tests at the bar, he earns better grades. He advises all students to study at the bar for similar results. Carlo is guilty of committing a. The fallacy of composition b. Fallacy of post hoc, ergo propter hoc c. Fallacy of correlation and causation d. Ceteris paribus

The fallacy of composition

Apples and oranges are substitute goods. A freeze in Florida destroyed a good portion of the orange crop. Ceteris paribus, a. The price of both apples and oranges will increase. b. The price of both apples and oranges will fall. c. The price of oranges will increase and the price of apples will fall d. The price of oranges will fall and the price of apples will increase

The price of both apples and oranges will increase

Each of the following is a basic concern of any economic system except a. The allocation of scarce resources among producers b. The mix of different types of output c. The distribution of output among customers d. The quality of resources allocated among customers

The quality of resources allocated among customers

The major "success indicator" for business managers in command economies like the Soviet Union and China in the past was a. The quantity of output. b. Product quality. c. The amount of profits. d. Worker morale.

The quantity of output.

1. The short run is a period of time during with a. All resources are fixed b. All resources are variable c. The scale of production is fixed d. The scale of production is variable

The scale of production is fixed

When Hurricane Andrew passed through Louisiana in the summer of 1992, approximately a quarter of the sugar cane crop was destroyed. Ceteris paribus, a. The supply of sugar decreased and the price of sugar increased b. The supply of sugar decreased and the price of sugar decreased. c. The demand for sugar increased and the price of sugar increased. d. The demand for sugar decreased and the price of sugar decreased.

The supply of sugar decreased and the price of sugar increased

Consider the market fur turkeys. In the US, because of Thanksgiving in the month of November a. There is a downward movement along the demand curve for turkeys b. There is an upward movement along the supply curve for turkeys c. The supply curve of turkeys shift leftward d. The demand curve for turkeys shifts leftward

There is an upward movement along the supply curve for turkeys

When two people trade a. Both of them expect to be worse off by the exchange b. They are trying to help out each other c. They know that one of them will be better off than the other d. They both expect to be made better off by the exchange

They both expect to be made better off by the exchange

The opportunity cost of constructing a new public highway is the a. Money cost of hiring contractors and construction workers for the new highway. b. Value of other goods & services that must be sacrificed to construct the new highway. c. Expected cost of constructing the new highway in a future year. d. Value of shorter driving times and distances when the new highway is completed.

Value of other goods & services that must be sacrificed to construct the new highway.

Confronted with the same unit cost data, a monopolistic producer will charge a. the same price and produce the same output as a competitive firm. b. a higher price and produce a larger output than a competitive firm. c. a higher price and produce a smaller output than a competitive firm. d. a lower price and produce a smaller output than a competitive firm.

a higher price and produce a smaller output than a competitive firm