Exhibit 38-4
If the closing price of Black Motor’s stock on the previous day was $76.95, what value
goes in blank (C)?
a. +1.95
b. -1.95
c. +0.95
d. -0.95
e. There is not enough information given to answer this question.
Under a fixed exchange rate system, if the dollar price of Mexican pesos is above its
equilibrium level, the peso is referred to as overvalued and the dollar is necessarily
undervalued.
a. True
b. False
Exhibit 24-9
Total fixed costs are equal to.
a. $0.
b. $10.
c. $25.
d. $59.
e. There is not enough information to answer the question.
Working alone, a person who shirks receives __________ the benefits of shirking and
pays __________ the costs of shirking.
a. all; only some of
b. only part of; all
c. all; all
d. only part of; only part of
e. none of the above
Comparative advantage is the ability to produce a good at a lower opportunity cost than
others.
a. True
b. False
The perfectly competitive firm will shut down in the short run if price is
a. less than average variable cost.
b. greater than average variable cost but less than average total cost.
c. greater than average total cost.
d. equal to average total cost.
e. a and b
Person A argues that government is unnecessary and often does more harm than
good.Economist A disagrees.What does economist A — who believes that there is a
legitimate case that can be made for government — most likely say to support his
position?
a. Government almost always does more good than harm.
b. Without government, life would be anarchy.
c. There are some things that individuals want done that can€t get done without
government.
d. There are better people going into government work than are going into the private
sector.
e. none of the above
Since price __________ for a monopoly firm, the profit-maximizing monopoly firm
does not produce the quantity of output for which price equals marginal cost.
a. does not equal marginal revenue
b. does equal marginal revenue
c. is higher for a perfectly competitive firm than
d. is lower for a perfectly competitive firm than
e. a and d
To minimize cost, a firm should hire two factors, X and Y, until
a. MPPX/PX = MPPY/PY.
b. MPPX = MPPY.
c. MPPX x PX = MPPY x PY.
d. MRPX/PX = MRPY/PY.
e. MRPX x PX = MRPY x PY.
Which of the following statements is false?
a. The shift factors for the supply curve are: income, preferences, prices of related
goods, the number of buyers, and expectations of future price.
b. A change in (own) price changes the quantity supplied of a good.
c. A change in demand is graphically represented by a shift in the demand curve.
d. A change in quantity demanded is represented by a movement along a given demand
curve.