econ quiz 2

there is an upward movement along the demand curve for pizza and the demand curve for movies shifts rightward

Joe consumes pizza and movies. Pizza and movies are substitutes. According to marginal utility theory, if the price of a pizza rises then

without using more inputs than necessary.

Technological efficiency necessarily means producing

have no effect at all on the Bigtown rental market.

The above figure shows the apartment rental market in Bigtown. If the Bigtown Housing Authority imposes a rent ceiling of $1,000 per month, the ceiling will

some renters and hurt other renters.

The above figure shows the apartment rental market in Bigtown. If the Bigtown Housing Authority imposes a rent ceiling of $500 per month, the rent ceiling will help

c

In the above table, the technique that is NOT technologically efficient is, In the above table, the technique that is NEVER economically efficient is

5 units

In the figure above, the marginal product of the second worker is

2

In the table above, if Brent maximizes his utility by consuming 3 bags of popcorn and 3 bottles of soda, then the ratio of the price of popcorn to the price of soda is expected to be, The marginal rate of substitution (MRS) at point C equals

Marginal utility theory is used in the derivation of the

negative slope of demand curves.

78

The table above gives Andy's utility from popcorn. Andy's total utility from four boxes of popcorn is

Buyers and sellers each pay the same amount of the tax and each pays $10 per CD.

In the above figure, who pays the larger share of the tax?

$20; $10

In the above figure, the price received by the seller before the tax is ________ per CD, and the price received and kept by the seller after the tax is ________ per CD.

$20

In the above figure, what is the amount of the tax per CD?

$400 million

In the above figure, what is the total tax revenue collected by the government?

the quantity of at least one factor of production is fixed.

The short run is a period of time in which

a maximizing profit

A firm's basic goal is best described as

monopoly

A market structure in which one firm produces a good or service that has no close substitutes is called

A minimum wage set above the equilibrium wage rate for low-skilled workers

A minimum wage set above the equilibrium wage rate for low-skilled workers

floor that results in a surplus of low-skilled labor.

A minimum wage set above the equilibrium wage rate is a price

it marks the boundary between what is affordable and unaffordable.

A person's consumption possibilities is defined by the budget line because

above which a seller cannot legally sell.

A price ceiling is a price

results in a surplus if the floor price is higher than the equilibrium price.

A price floor

a loss of both consumer and producer surplus.

A rent ceiling results in a shortage of apartments. As a result, there is

the supply of gasoline curve leftward.

A sales tax is imposed on the sellers of gasoline. This tax shifts

combinations of goods among which the consumer is indifferent.

An indifference curve is a line that shows

The consumer reaches more preferred combinations of goods.

As a consumer moves away from the origin onto higher indifference curves, what happens?

his or her total utility increases.

As an individual's consumption of a good increases

At the utility maximizing equilibrium for two goods, X and Y, which of the following must be TRUE?

At the utility maximizing equilibrium for two goods, X and Y, which of the following must be TRUE?

indifference curves.

Consumers' preferences are described by, A preference map is a set of

4 units of utility

Given the data in the above table, income of $13, a price of $1 for a bottle of water and $2.00 for a hamburger, what is the marginal utility per dollar spent on the fifth hamburger?

the marginal rate of substitution for books decreases.

In the above figure, I is an indifference curve. Moving from point a to point b,

dimishing

In the above figure, after the second worker is hired, the marginal product of labor is

$16 per hour; 2,000

In the above figure, if the minimum wage is equal to ________, there would be ________ hours of labor employed.

$20; $30

In the above figure, the price paid by the buyer before the tax is ________ per CD, and the price paid by the buyer after the tax is ________ per CD.

200 slices

Larry spends all his $800 monthly income on pizza and milk. The price of pizza is $4 a slice, and the price of milk is $2 per quart. Larry's real monthly income in terms of pizza is

4 DVDs and 2 pizzas

Lisa spends all her income on pizzas and DVDs. The above table shows Lisa's marginal utility for pizza and marginal utility for DVDs. If the price of a pizza is $10, the price of a DVD is $5, and Lisa has $40 to spend on the two goods, what combination of pizza and DVDs will maximize her utility?

just touches the highest indifference curve at one point.

Luke enjoys eating tuna sashimi and drinking Pepsi. His consumer equilibrium occurs where his budget line

is the additional utility derived from the last unit of a good consumed.

Marginal utility

$1 × Qc + $2 × Qm = $10.

Mary has $10 to spend each week on coffee, Qc and magazines, Qm. The price of a coffee is $1, and the price of a magazine is $2. Mary's budget equation is

that landlords charge "key money," high payments charged to new tenants for new locks and keys.

One common effect of rent ceilings in big cities is

attainable but not technologically efficient.

Points below a firm's total product curve are

both attainable and technologically efficient.

Points on a firm's total product curve are

there would be a shortage of apartments.

Rent(dollars per month)Quantity of apartmentssupplied(per month)Quantity of apartmentsdemanded(per month)2002010030040804006060500804060010020 The above table gives the demand schedule and the supply schedule for housing in Anytown, U.S.A. If a rent ceiling of $300 is imposed in the housing market, then

$9.44

Sandra's Sweaters' production function is shown in the above table. Sandra rents three knitting machines for $30 a day each and hires workers at a wage rate of $40 a day. If Sandra produces 18 sweaters per day, what is her average total cost?

up to 500 bagels

The above figure shows the costs at Barney's Bagel Bakery. Up to which level of output will increasing marginal returns in production be experienced at Barney's Bagel Bakery?

$10,000

The above figure shows the market for blouses. The government decides to impose the sales tax on sellers, as shown in the figure. What is the deadweight loss?

20 gallons of gasoline and 5 movie rentals

The above figure shows your budget line and indifference curves. What quantities of gasoline and movie rentals would you choose?

Both answers A and B are correct.

The above table gives Sue's marginal utility schedules for sub sandwiches and Mountain Dew, the only products Sue consumes. Suppose initially the price of a sub sandwich is $4 each and the price of a Mountain Dew is $2 each. Sue's income is $12. If the price of subs rises to $6 each, Sue will consume, Moving along an indifference curve the

2; 2

The above table gives Sue's marginal utility schedules for sub sandwiches and Mountain Dew, the only products Sue consumes. Suppose the price of a sub sandwich is $4 each and the price of a Mountain Dew is $2 each. Sue's income is $12. If Sue is at a consumer equilibrium, she eats ________ sub sandwich(es) and drinks ________ Mountain Dews.

3 barrels of pickles

The above table gives some cost data for Peter's Pickles. Peter's fixed cost is $20. Average variable cost (AVC) is lowest when output is equal to

Tammy's total utility from five comedy videos is 800.

The above table gives some of Tammy's total and marginal utilities from comedy videos. Which of the following statements is TRUE?

$8

The above table gives some of the costs of the Delicious Pie Company. The marginal cost of increasing pie output from 200 to 300 pies equals ________ per pie.

1

The above table gives the total utility that Homer obtains from consuming various quantities of chocolate chip cookies. The marginal utility from the fifth pound of cookies is

2 CDs and 3 videos.

The above table shows Tammy's total utility from streaming videos and CDs. If Tammy has $70 to spend on videos and CDs and if the price of a streamed video is $10 and the price of a CD is $20, then Tammy maximizes her utility by purchasing

$5; $20

The figure above shows Tanya's consumption possibilities. Tanya spends $100 per month on movies and restaurant meals. The price of a movie ticket is ________ and the price of a restaurant meal is ________.

point j only

The figure above shows three of a consumer's indifference curves.

B;A; B

The figure illustrates Sally's budget line and her preferences. Point ________ is Sally's best affordable point, and Sally prefers point ________ to point ________.

a variable input, with a given quantity of fixed inputs, the marginal product of the variable input eventually decreases.

The law of diminishing returns states that as a firm increases

the quantities of all factors of production can be varied.

The long run is a time frame in which

one unit increase in the quantity of labor, while holding the quantity of other inputs constant.

The marginal product of labor is the increase in total product from a

1/2

The marginal rate of substitution (MRS) at point G equals

slope of the indifference curve.

The marginal rate of substitution is equal to the magnitude of the

20 million hours per year.

The market for unskilled labor is illustrated in the figure above. The market is in equilibrium and then a minimum wage of $10 per hour is imposed. Employment will fall by

30 million hours per year.

The market for unskilled labor is illustrated in the figure above. The market is in equilibrium and then a minimum wage of $10 per hour is imposed. Unemployment will equal

total utility increases by smaller and smaller amounts as the quantity of the good consumed increases.

The principle of diminishing marginal utility says that

$400

The table above gives costs at Jan's Bike Shop. Unfortunately, Jan's record keeping has been spotty. Each worker is paid $100 a day. Labor costs are the only variable costs of production. What is the total cost of producing 50 bikes?

$200

The table above gives costs at Jan's Bike Shop. Unfortunately, Jan's record keeping has been spotty. Each worker is paid $100 a day. Labor costs are the only variable costs of production. What is the total fixed cost of producing 64 bikes?

$300

The table above gives costs at Jan's Bike Shop. Unfortunately, Jan's record keeping has been spotty. Each worker is paid $100 a day. Labor costs are the only variable costs of production. What is the total variable cost of producing 60 bikes?, The above table gives some of the costs of the Delicious Pie Company. What is the total fixed cost of producing 100 pies?

marginal product of labor is less than average product of labor.

The table shows some data that describes Tom's T-Shirts' total product when Tom's has 1 sewing machine. When 4 workers are employed

his income and the prices of the goods that he consumes.

Tom's consumption possibilities is defined by

sum of the total fixed cost and the total variable cost.

Total cost is equal to the

d

Using the data in the above table, if the price of an hour of labor is $10 and the price of a unit of capital is $20, then the most economically efficient technique for producing 100 sweaters is

a

Using the data in the above table, if the price of an hour of labor is $20 and the price of a unit of capital is $10, then the most economically efficient technique for producing 100 sweaters is

4 pizzas per hour

Using the data in the above table, what is the average product of three employees?

3 pizzas per hour

Using the data in the above table, what is the marginal product of the third employee?

$5.00 per unit

Using the data in the above table, when the firm increases its output from 4 to 9 units, the marginal cost of a unit is

the satisfaction from consuming a good.

Utility is best defined as

Both A and B are on a higher indifference curve than C.

We have asked Mac to rank his preferences between three market baskets, A, B, and C. If Mac prefers B to C but does not care if he gets A or B, then

marginal utility per dollar from popcorn definitely increases.

When the price of popcorn falls, before there is any change in consumption, the

monopolistic competition

Which market type has characteristics as follows: large number of firms, differentiated product?

none of the above

Which of the following is an economic policy that promotes the efficient quantity of apartments?

As more of a good is consumed, its total utility increases, even if the good is subject to diminishing marginal utility.

Which of the following statements is TRUE?

When marginal product is less than average product, average product is decreasing.

Which of the following statements is TRUE?

$1.50

Your weekly budget for gasoline and movie rentals is $45.00. Referring to the figure above, what is the price per gallon of gasoline?

$3.00

Your weekly budget for gasoline and movie rentals is $45.00. Referring to the figure above, what is the price per movie rental?

A consumer is in equilibrium when the

consumer is buying the combination of goods and services on the budget line and on the highest attainable indifference curve.