Archives: Quiz
Economics Chapter 23 A firm that shuts down in the short run experiences losses
Copyright © 2018 Pearson Education, Inc. 60) The short-run shutdown price occurs where price equals A) MC. B) AVC at any point. C) AVC at the minimum point. D) AFC at the minimum point. Answer: C Diff: 1 Topic: 23.3 […]
Economics Chapter 23 When the price in the market is $4, economic profits will
Copyright © 2018 Pearson Education, Inc. 12) If the firm in the above figure produces output level D, it incurs an average fixed cost of production equal to the distance A) DK. B) RN. C) JL. D) KR. Answer: D […]
Economics Chapter 23 For Perfectly Competitive Firm When
Copyright © 2018 Pearson Education, Inc. 81) If a firm is producing an output rate at which marginal cost is equal price, the firm A) is maximizing profits. B) should increase its output level. C) should reduce its output level. […]
Economics Chapter 23 What Does profit Equal When Quantity Equals 3a
Copyright © 2018 Pearson Education, Inc. 21) Referring to the diagram, which of the following statements is INCORRECT? A) The equilibrium market price is $5, at which the industry demand and supply curves intersect. B) If the individual firm raises […]
Economics Chapter 23 Which The Following Not Characteristic
Copyright © 2018 Pearson Education, Inc. Economics Today, 19e (Miller) Chapter 23 Perfect Competition 23.1 Characteristics of a Perfectly Competitive Market Structure 1) Which of the following is NOT a characteristic of a perfectly competitive market? A) The products sold […]
Economics Chapter 22 Constant returns to scale are illustrated by
Copyright © 2018 Pearson Education, Inc. 36) A decrease in long-run average costs resulting from increases in output is A) attributed to economies of scale. B) attributed to diseconomies to scale. C) attributed to constant returns to scale. D) attributed […]
Economics Chapter 22 The Anticipated Permanent Rate Output
Copyright © 2018 Pearson Education, Inc. 146) If the price of labor is constant and a firm experiences diminishing marginal product, then its A) marginal costs decrease. B) fixed costs increase. C) average variable cost increases. D) total costs decrease. […]
Economics Chapter 22 There Way For Average Variable Costs Fall
Copyright © 2018 Pearson Education, Inc. 81) In the above table, when output is 8 units, average variable costs are A) $4.75. B) $3.50. C) $1.25. D) $4.50. Answer: B Diff: 3 Topic: 22.3 Short-Run Costs to the Firm Learning […]
Economics Chapter 22 Graph Showing The Short run Cost
Copyright © 2018 Pearson Education, Inc. 22) Refer to the above table. At an output of 5 units, average total costs are A) $18. B) $19. C) $37. D) $185. Answer: C Diff: 2 Topic: 22.3 Short-Run Costs to the […]
Economics Chapter 22 The Production Function The Maximum Possible Output
Copyright © 2018 Pearson Education, Inc. 84) In the above table, the average product for 5 workers and the marginal product of the 5th worker is A) 3.6; 2. B) 0.72; 1. C) 2; 0.6. D) 16; 2. Answer: A […]
Economics Chapter 22 According to the above table, what is the average product
Copyright © 2018 Pearson Education, Inc. 24) In the above table, marginal product becomes negative after employing the A) second worker. B) third worker. C) fourth worker. D) fifth worker. Answer: C Diff: 1 Topic: 22.2 A Firm’s Production Learning […]
Economics Chapter 22 The Amount Calendar Time Associated
Copyright © 2018 Pearson Education, Inc. Economics Today, 19e (Miller) Chapter 22 The Firm: Cost and Output Determination 22.1 Short Run Versus Long Run 1) Economists generally define the short run as being A) that period of time in which […]
Economics Chapter 21 A legal claim to a percentage of a company’s future profits
Copyright © 2018 Pearson Education, Inc. 28) If you own 100 shares of preferred stock, how many regular votes would you get to cast at the next stockholders meeting? A) 500 B) 100 C) 1 D) 0 Answer: D Diff: […]
Economics Chapter 21 The rate of interest that you pay on a home loan depends
Copyright © 2018 Pearson Education, Inc. 72) A star basketball player signs a contract that newspaper reports say is worth $10 million. The player receives $5 million on signing, and $5 million a year for three years. The contract is […]
Economics Chapter 21 Under which one of the following situations would you be better
Copyright © 2018 Pearson Education, Inc. 7) Creditors require collateral in many cases, because A) it helps offset the risks of lending the funds. B) the borrower is a low risk. C) the loan is small. D) none of the […]
Economics Chapter 21 The British economist most often associated with the issue
Copyright © 2018 Pearson Education, Inc. 129) When economic profits are positive, accounting profits A) must be positive. B) will be negative. C) will equal zero. D) could be positive, negative or zero. Answer: A Diff: 1 Topic: 21.2 Firms […]
Economics Chapter 21 The Use Of her Car Example Of a Explicit
Copyright © 2018 Pearson Education, Inc. 55) If the explicit costs to a firm to produce a unit of output are $6 and the firm sells 200,000 units of output for $8 per unit, the accounting profit received by the […]
Economics Chapter 21 If the interest rate is 10 percent per year,
Copyright © 2018 Pearson Education, Inc. 59) When a resource has a perfectly elastic supply curve A) the amount of economic rent for the resource is determined by its supply. B) the amount of economic rent for this resource is […]
Economics Chapter 21 The Payment For Factor Production
Copyright © 2018 Pearson Education, Inc. Economics Today, 19e (Miller) Chapter 21 Rents, Profits, and the Financial Environment of Business 21.1 Economic Rent 1) Pure economic rent is A) a payment to a resource owner over and above what is […]
Economics Chapter 20 In the above figure, budget line DF would swivel in to the left if
Copyright © 2018 Pearson Education, Inc. 16) The quantities of Good M are plotted on the vertical axis while the quantities of Good N are plotted on the horizontal axis. The prices of both M and N fall. The intercepts […]
Economics Chapter 20 Outcome Micro 10 Explain How The Factors Utility
Copyright © 2018 Pearson Education, Inc. 6) A curve that shows a set of consumption alternatives that give the same level of satisfaction is A) a substitution curve. B) a budget line. C) an indifference curve. D) an income curve. […]
Economics Chapter 20 Your annual review is given to you at your place
Copyright © 2018 Pearson Education, Inc. 35) A decrease in the price of a good causes A) the utility of the good to decrease. B) the marginal utility of the good to decrease. C) purchasing power of a person’s income […]
Economics Chapter 20 Optimizing Consumption Choices learning Outcome
Copyright © 2018 Pearson Education, Inc. 16) The consumer optimum (for two goods, A and B) is reached when A) TUA = TUB. B) MUA = MUB. C) TUA/PA = TUB/PB. D) MUA/PA = MUB/PB. Answer: D Diff: 1 Topic: […]
Economics Chapter 20 Utility The Want satisfying Power Good Service Subjective
Copyright © 2018 Pearson Education, Inc. 121) As an individual consumes more of a particular good, the total level of utility derived from that consumption usually A) increases at a constant rate. B) increases at an increasing rate. C) increases […]
Economics Chapter 20 The additional utility or satisfaction that one derives from
Copyright © 2018 Pearson Education, Inc. 63) The total utility of consuming 6 units of a good is 255. The marginal utility of the 6th unit is 45 and the marginal utility of the 5th unit is 65. The total […]
Economics Chapter 20 Which of the following is NOT true of utility?
Copyright © 2018 Pearson Education, Inc. Economics Today, 19e (Miller) Chapter 20 Consumer Choice 20.1 Utility Theory 1) In economics, another term for satisfaction is A) scarcity. B) need. C) utility. D) return. Answer: C Diff: 1 Topic: 20.1 Utility […]
Economics Chapter 19 Micro 6 Explain The Fundamentals The Elasticity Supply
Copyright © 2018 Pearson Education, Inc. 2) If the quantity supplied of candy increases by 1% when the price of candy increases by 2%, which of the following is TRUE? A) Supply for candy is elastic, and price elasticity of […]
Economics Chapter 19 Two items which have a negative cross price elasticity of demand
Copyright © 2018 Pearson Education, Inc. 38) The price of A falls by 2 percent, and the quantity demanded of A increases by 2 percent. Meanwhile, the quantity demanded of B increases by 2 percent too. We would conclude that […]
Economics Chapter 19 Suppose that the absolute price elasticity of demand for hamburger
Copyright © 2018 Pearson Education, Inc. 28) When the consumer spends a large portion of her income on a good, demand will be A) elastic. B) unit-elastic. C) inelastic. D) elastic, unit-elastic or inelastic depending upon supply. Answer: A Diff: […]
Economics Chapter 19 To increase its revenue, the transit authority should
Copyright © 2018 Pearson Education, Inc. 35) If total revenues rise when the market price increases, then we know that A) demand is inelastic. B) demand is elastic. C) demand is unit-elastic. D) its demand has zero elasticity. Answer: A […]
Economics Chapter 19 Quantity Demanded Extremely Responsive Even Very Small
Copyright © 2018 Pearson Education, Inc. 122) If the absolute price elasticity of demand for a product is greater than 1, then A) the absolute price elasticity of demand is inelastic and consumers are relatively insensitive to price changes. B) […]
Economics Chapter 19 If the price of gasoline goes up by 50% and the quantity
Copyright © 2018 Pearson Education, Inc. 61) If the price of a cola increased by 12% and consumers responded by purchasing 24% less cola, the absolute value of price elasticity of demand for cola would be A) 0.20. B) 1.2. […]
Economics Chapter 19 how much the market supply changes in response to a change
Copyright © 2018 Pearson Education, Inc. Economics Today, 19e (Miller) Chapter 19 Demand and Supply Elasticity 19.1 Price Elasticity 1) The price elasticity of demand is a measure of A) the responsiveness of the quantity demanded of a good to […]
Economics Chapter 18 United Nations International Bank International Monetary Organization answer
Copyright © 2018 Pearson Education, Inc. 35) All the following would be a possible loan that the International Monetary Fund might make EXCEPT A) a loan to a private firm. B) long-term loans to a nation’s government which support growth […]
Economics Chapter 18 International Institutions And Policies
Copyright © 2018 Pearson Education, Inc. 43) If there is a major problem in a country that leads to the rapid withdrawal of foreign investment, this is known as A) moral hazard. B) adverse selection crisis. C) an international leakage. […]
Economics Chapter 18 Count Developed Nations Develop Policies That Promote
Copyright © 2018 Pearson Education, Inc. 22) Extensive government restrictions on the use of capital are likely to A) create dead capital. B) enhance economic growth. C) enhance economic freedom. D) result in capital resources being devoted to their most […]
Economics Chapter 18 The Influence That Birthrates Have
Copyright © 2018 Pearson Education, Inc. Economics Today, 19e (Miller) Chapter 18 Policies and Prospects for Global Economic Growth 18.1 Labor Resources and Economic Growth 1) According to the text, population growth in many poor countries does NOT generally result […]
Economics Chapter 17 According New Keynesians Increase Which The
Copyright © 2018 Pearson Education, Inc. 42) According to New Keynesians, an increase in which of the following will tend to cause the inflation rate to increase? A) an anticipation of higher future inflation B) an expected increase in aggregate […]
Economics Chapter 17 In the case of a permanent negative supply shock
Copyright © 2018 Pearson Education, Inc. 97) In the above figure, starting at E3, if there is an increase in technology that causes a permanent increase in production capabilities A) aggregate supply would shift to SRAS0 and LRAS1 would shift […]
Economics Chapter 17 Other Things Being Equal what Point Represents The
41 28) An unexpected increase in aggregate demand A) causes the price level to fall. B) both the unemployment rate and the price level to rise. C) the unemployment rate to rise. D) causes the price level to rise. Answer: […]
Economics Chapter 17 Active Versus Passive Policymaking And The Natural
Copyright © 2018 Pearson Education, Inc. 65) During a recession, the A) natural rate of unemployment has fallen. B) cyclical rate of unemployment is positive. C) cyclical rate of unemployment is zero. D) cyclical rate of unemployment is negative. Answer: […]
Economics Chapter 17 If a policy is carried out by a rule, then we have an example of
Copyright © 2018 Pearson Education, Inc. Economics Today, 19e (Miller) Chapter 17 Stabilization in an Integrated World Economy 17.1 Active versus Passive Policymaking and the Natural Rate of Unemployment 1) Active policymaking refers to A) actions taken by policy makers […]
Economics Chapter 16 Fed Isa Fiscal Policy Tax Rates And
Copyright © 2018 Pearson Education, Inc. 39) The tools of monetary policy are A) open market operations, differential between the discount rate and the federal funds rate, and tax rates. B) open market operations, government spending, and the required reserve […]
Economics Chapter 16 According The Quantity Theory Money And
Copyright © 2018 Pearson Education, Inc. 35) According to the quantity theory of money and prices, a 2 percent increase in the money supply ultimately leads to A) a 2 percent increase in real GDP. B) a 2 percent increase […]
Economics Chapter 16 Monetary Policy And Inflation learning
Copyright © 2018 Pearson Education, Inc. 43) An indirect effect of monetary policy is that as the money supply A) increases, interest rates fall, and borrowing and spending increase. B) increases, interest rates rise, and borrowing and spending decrease. C) […]
Economics Chapter 16 Increase The Money Supply learning Outcome Macro12 Explain
Copyright © 2018 Pearson Education, Inc. 26) Which of the following is a TRUE statement about the relationship between the price of bonds and the interest rate? A) The prices of bonds are directly related to the interest rate. B) […]
Economics Chapter 16 The Demand For Money learning
Copyright © 2018 Pearson Education, Inc. 63) Suppose a family is holding $1000 in its checking account for normal transactions, $500 in cash for emergencies, and $1500 as a store of value when the interest rate is 4 percent. If […]
Economics Chapter 16 Gross Domestic Product Gdp The Vertical Axis
Copyright © 2018 Pearson Education, Inc. Economics Today, 19e (Miller) Chapter 16 Domestic and International Dimensions of Monetary Policy 16.1 The Demand for Money 1) What are the two features of money that distinguish it from all other assets in […]
Economics Chapter 15 If the FDIC eliminated its insurance program
Copyright © 2018 Pearson Education, Inc. 2) The FDIC was created because A) banks failed to create money the way the Fed wanted them to. B) people worried about bank failures after World War I, even though very few banks […]
Economics Chapter 15 Analytical Thinking 134 Proceeds From Loans Are Not
Copyright © 2018 Pearson Education, Inc. 112) If the reserve ratio is raised, the money multiplier A) is lowered. B) is increased. C) stays the same. D) is doubled. Answer: A Diff: 2 Topic: 15.4 Fractional Reserve Banking, the Federal […]