1)
Refer to the diagram, which pertains to a purely competitive firm. Curve C represents:
A.total revenue and marginal revenue.
B.marginal revenue only.
C.total revenue and average revenue.
D.average revenue and marginal revenue.
2) Answer the question based on the following data.
Refer to the above data. Over which price range is the demand elastic?
A.$4-$6
B.$6-$8
C.$8-$10
D.$14-$16
3) Neoclassical economic analysis tends to disregard the following motivations in
people’s decisions and actions, except:
A.Charity
B.Selflessness
C.Self-interest
D.Focus on the common good
4)
Refer to the diagram. If labor is the only variable input, the average product of labor is
at a:
A.minimum at point b.
B.maximum at point b.
C.maximum at point a.
D.maximum at point c.
5)
In the diagram, the range of diminishing marginal returns is:
A.0Q3.
B.0Q2.
C.Q1Q2.
D.Q1Q3.
6) Which of the following will not shift the demand curve for labor?
A.The use of a larger stock of capital with the labor force.
B.A change in the wage rate.
C.An increase in the price of the product that labor is helping to produce.
D.The adoption of a more efficient method of combining labor and capital in the
production process.
7) The demand curve faced by a pure monopolist:
A.may be either more or less elastic than that faced by a single purely competitive firm.
B.is less elastic than that faced by a single purely competitive firm.
C.has the same elasticity as that faced by a single purely competitive firm.
D.is more elastic than that faced by a single purely competitive firm.
8) Which person would most likely be eligible to receive Medicare?
A.A student attending a state university
B.A person receiving Social Security benefits
C.A part-time worker at a manufacturing company
D.A U.S. college professor teaching in another country
9) Suppose the demand for strawberries rises sharply, resulting in an increased price for
strawberries. As it relates to strawberry pickers, we could expect the:
A.MRP curve to shift to the right.
B.MRP curve to shift to the left.
C.MRC curve to shift downward.
D.MP curve to shift downward.
10) The supply of cars will be more elastic the:
A.Greater the quantity demanded
B.Longer the time interval considered
C.Greater the decline in input prices
D.Less able producers are to make other goods