51-75
Figure 9-1 shows the U.S. demand and supply for leather footwear. Refer to Figure 9-1. Under autarky, the consumer surplus is
$195.
Figure 11-7 shows the cost structure for a firm. Refer to Figure 11-7. When output level is 100, what is the total cost of production?
$2,000
Table 10-2 above shows Keira's utility from soup and sandwiches. The price of soup is $2 per cup and the price of a sandwich is $3. Keira has $18 to spend on these two goods.
3 cups of soup and 4 sandwiches
Table 10-7 shows Antonio's utility from beer and pizza. Refer to Table 10-7. Suppose Antonio has $10 to spend and the price of beer = $2 per glass and the price of pizza = $2 per slice. How many of each good will he consume when he maximizes his utility?
3 glasses of beer, 2 slices of pizza
Table 11-1 shows the technology of production at the Matsuko's Mushroom Farm for the month of May. Refer to Table 11-1. What is the marginal product of the 4th worker?
5 pounds
Table 11-2 summarizes production at the Crunchy Apple Orchard for the month of April 2005. Refer to Table 11-2. What is the marginal product of the 4th worker?
50 bushels
Which of the following statements is false?
An explicit cost is a nonmonetary opportunity cost.
Since 1953 the United States has imposed a quota to limit the imports of peanuts. Figure 9-3 illustrates the impact of the quota. Refer to Figure 9-3. What is the area that represents the deadweight loss as a result of the quota?
E + M
Refer to Figure 11-5. Identify the curves in the diagram.
E = marginal cost curve; F = average total cost curve; G = average variable cost curve; H = average fixed cost curve.
Bryce and Tina are artisans who produce homemade candles and soap. Table 9-3 lists the number of candles and bars of soap Bryce and Tina can each produce in one month. Refer to Table 9-3. Select the statement that accurately interprets the data in the table.
Neither Bryce nor Tina has an absolute advantage in making soap.
Refer to Figure 11-4. What happens to the average fixed cost of production when the firm increases output from 150 to 200?
It falls.
Elegant Settings manufactures stainless steel cutlery. Table 11-8 shows the company's cost data.
economies of scale at an output of 300 or less and diseconomies of scale at an output level above 400.
Refer to Figure 10-1. When the price of hoagies increases from $5.00 to $5.75, quantity demanded decreases from Q1 to Q0. This change in quantity demanded is due to
the income and substitution effects.
Keegan has $30 to spend on Pita Wraps and Bubble Tea. The price of a Pita Wrap is $6 and the price of a glass of Bubble Tea is $3. Table 10-1 shows his total utility from different quantities of the two items. Refer to Table 10-1. What is Keegan's optimal consumption bundle?
3 pita wraps and 4 bubble teas
Since 1953 the United States has imposed a quota to limit the imports of peanuts. Figure 9-3 illustrates the impact of the quota. Refer to Figure 9-3. With a quota in place, what is the quantity consumed in the domestic market?
34 million pounds
Suppose the U.S. government imposes a $0.40 per pound tariff on rice imports. Figure 9-2 shows the impact of this tariff. Refer to Figure 9-2. Without the tariff in place, the United States produces
9 million pounds of rice.
Which of the following statements explains the difference between diminishing returns and diseconomies of scale?
Diminishing returns apply only to the short run; diseconomies of scale apply only in the long run.
Refer to Figure 11-2. Short run output is maximized at
L3.
Bryce and Tina are artisans who produce homemade candles and soap. Table 9-3 lists the number of candles and bars of soap Bryce and Tina can each produce in one month. Refer to Table 9-3. Select the statement that accurately interprets the data in the table.
Tina has an absolute advantage in making candles.
A tariff
makes domestic consumers worse off.
Utility is
subjective and difficult to measure.
Which of the following is the best example of a voluntary export restraint?
a limit set by the Korean government on the number of cell phones that the United States can import fro Korea.
As a consumer consumes more and more of a product in a particular time period, eventually marginal utility
declines.
A change in the price of a good has two effects on the quantity consumed. What are these effects?
the income effect and the substitution effect
If, as a person consumes more and more of a good, each additional unit adds less satisfaction than the previous unit consumed, we are seeing the workings of
the law of diminishing marginal utility.