Table 4-1
The table above lists the highest prices three consumers, Tom, Dick and Harriet, are
willing to pay for a short-sleeved polo shirt. If the price of one of the shirts is $28
dollars
A) Tom will buy two shirts, Dick will buy one shirt and Harriet will buy no shirts.
B) Tom will receive $12 of consumer surplus from buying one shirt.
C) Tom and Dick receive a total of $70 of consumer surplus from buying one shirt each.
Harriet will buy no shirts.
D) Harriet will receive $25 of consumer surplus since she will buy no shirts.
By 2013, how many European countries were members of the European Union?
A) 12
B) 17
C) 28
D) 57
Households ________ factors of production and ________ goods and services.
A) supply; demand
B) supply; supply
C) demand; supply
D) demand; demand
The currencies of Poland and Iceland (the zloty and the krona, respectively) declined in
value relative to the euro following the financial crisis of 2008. This means that the
A) zloty and krona appreciated in value against the euro.
B) euro depreciated in value against the zloty and the krona.
C) zloty and krona depreciated in value against the euro.
D) zloty depreciated in value against the krona.
E) Both A and B are correct.
When the BEA calculates real GDP using the average of prices in the current year and
the year preceding it, and this average changes from year to year, this is called
calculating GDP using
A) chained-weighted prices.
B) fixed-weight prices.
C) current-year prices.
D) fixed base-year prices.
An oligopolist’s demand curve is
A) identical to that of a perfect competitive firm.
B) identical to that of a monopolistically competitive firm.
C) vertical on a price quantity diagram.
D) unknown because a response of firms to price changes by rivals is uncertain.
The additional utility that George receives from consuming one more slice of pizza is
called
A) average utility.
B) marginal utility.
C) total utility.
D) diminishing utility.
An increase in the demand for lobster due to changes in consumer tastes, accompanied
by a decrease in the supply of lobster as a result bad weather reducing the number of
fishermen trapping lobster, will result in
A) a decrease in the equilibrium quantity of lobster and no change in the equilibrium
price.
B) an increase in the equilibrium price of lobster and no change in the equilibrium
quantity.
C) an increase in the equilibrium price of lobster; the equilibrium quantity may increase
or decrease.
D) a decrease in the equilibrium quantity of lobster; the equilibrium price may increase
or decrease.
Figure 13-8 Figure 13-8 shows cost and
demand curves for a monopolistically competitive producer of iced-tea. Based on the
diagram, one can conclude that
A) some existing firms will exit the market.
B) new firms will enter the market.
C) the industry is in long-run equilibrium.
D) firms achieve productive efficiency.
Figure 11-6
Figure 11-6 contains information about the
short run cost structure of a firm. In the figure above which letter represents the average
variable cost curve?
A) A
B) B
C) C
D) D
Figure 15-2
Figure 15-2 above shows the demand and cost curves facing a monopolist.
If the firm’s average total cost curve is ATC1, the firm will
A) suffer a loss.
B) break even.
C) make a profit.
D) face competition.
A Canadian oil company hires geological survey services from the United States. If all
else remains equal, this will
A) increase net exports.
B) increase the balance of trade.
C) decrease the current account balance.
D) increase the financial account.