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1)
Refer to the short-run data. The profit-maximizing output for this firm is:
A.above 440 units.
B.440 units.
C.320 units.
D.100 units.
2) Which one of the following statements is true? The fertility rates for major
industrialized countries in recent years show that Malthus's theory regarding population
is:
A.Valid because high standards of living have produced higher birthrates
B.Valid because high standards of living have produced lower birthrates
C.Invalid because high standards of living have produced higher birthrates
D.Invalid because high standards of living have produced lower birthrates
3) In the table below are cost and demand data for a pure monopolist.
(a)What is the level of price, output, and amount of profit for an unregulated
monopolist?
(b)Using the data in the table, what are the price, output, and profit for a regulated
monopolist that sets price equal to marginal cost compared with an unregulated
monopolist?
(c)Using the data in the table, what are the price, output, and profit for a regulated
monopolist that charges a fair-return price compared with an unregulated monopolist?
(d)Analyze the effect of regulation on the allocation of resources. Which situation is
most efficient? Which situation is most likely to be chosen by government? Why?
4) Economic theories:
A.are useless because they are not based on laboratory experimentation.
B.that are true for individual economic units are never true for the economy as a whole.
C.are generalizations based on a careful observation of facts.
D.are abstractions and therefore of no application to real situations.
5) Which of the following does not explain differences in rent for different parcels of
land?
A.Productivity differences
B.Demand differences
C.Supply-elasticity differences
D.Marginal-revenue-product differences
6)
Refer to the demand and supply diagram that relates to the health care market. If
suppliers provide the quantity of health care demanded and insurance pays one-half of
the equilibrium price of the health care good or service depicted, the immediate price to
the consumer and the quantity of health care consumed would be:
A.P1 and Q1
B.P1 and Q2
C.P2 and Q2
D.P2 and Q1
7) If a firm is a monopsonist in the hiring of both labor and capital, it will obtain the
profit-maximizing quantities of labor and capital when:
A.MRPL/PL = MRPC/PC = 1
B.MRPL/MRCL = MRPC/MRCC = 1
C.the MRP of labor equals the MRP of capital.
D.the MRC of labor equals the MRC of capital.
8) Which of the following is correct?
A.If demand is elastic, an increase in price will increase total revenue.
B.If demand is elastic, a decrease in price will decrease total revenue.
C.If demand is elastic, a decrease in price will increase total revenue.
D.If demand is inelastic, an increase in price will decrease total revenue.
9) The PPACA created incentives for firms to:
A.expand their workforces.
B.provide on-site medical care for their workers.
C.reduce workers to part-time status.
D.fire workers with medical problems.
10) A firm is producing an output such that the benefit from one more unit is more than
the cost of producing that additional unit. This means the firm is:
A.producing more output than allocative efficiency requires.
B.producing less output than allocative efficiency requires.
C.achieving productive efficiency.
D.producing an inefficient output, but we cannot say whether output should be
increased or decreased.
11) If the price of a resource is greater than its marginal revenue product, the firm
should:
A.Charge a higher price for its product
B.Make no change in the units of the resource used
C.Increase the units of the resource used in order to increase profits
D.Decrease the units of the resource used in order to increase profits
