Archives: Quiz
Chapter 15 6 The situation in the figure above creates a barrier to entry for
Copyright © 2011 Pearson Education, Inc. 62) Under earnings-sharing regulation, if a firm’s profits ________ above a certain level, they must be shared with the firm’s ________. A) rise; customers B) fall; customers C) rise; suppliers D) fall; suppliers E) […]
Chapter 15 8 What Are The disadvantages And Advantages Each answer Natural
Copyright © 2011 Pearson Education, Inc. 8) The above figure represents the cost, market demand, and marginal revenue curves for a monopoly. a. Indicate the price and quantity a single-price monopoly selects by labeling the price Pm and the quantity […]
Chapter 15 7 “A single-price monopoly charges a higher price and produces
Copyright © 2011 Pearson Education, Inc. 10) The table below gives a monopoly’s demand schedule. Complete the table by calculating the total revenue and the marginal revenue. 121 Answer: The completed table is above. Topic: Marginal revenue Skill: Level 3: […]
Chapter 15 4 for a single-price monopoly the deadweight loss is equal to the area
Copyright © 2011 Pearson Education, Inc. 27) In the above figure, for a single-price monopoly the deadweight loss is equal to the area A) abP1. B) acP2. C) bce. D) bed. E) P1beP3. Answer: C Topic: Is monopoly efficient? Skill: […]
Chapter 15 3 A single-price monopoly has marginal cost of $23 and marginal revenue
Copyright © 2011 Pearson Education, Inc. 50) The figure above shows the demand, marginal revenue, and marginal cost curves for Paul’s Parrot Pillows, a single-price monopoly producer of pillows stuffed with parrot feathers. When Paul maximizes his profit, he produces […]
Chapter 15 5 Regulated natural monopolies can obey a marginal cost pricing rule
Copyright © 2011 Pearson Education, Inc. 7) Under the social interest theory of regulation, the goal of regulating natural monopolies is A) to provide a larger, though not maximum, profit for the firms. B) to use average cost pricing. C) […]
Chapter 15 2 Which of the following is always true for a single-price monopolist
61) A monopoly market has A) a few firms. B) a single firm. C) two dominating firms in the market. D) only two firms in it. E) some unspecified number of firms in it. Answer: B Topic: Monopoly Skill: Level […]
Chapter 15 1 Which of the following is a characteristic of monopoly
Foundations of Microeconomics, 5e (Bade/Parkin) Chapter 15 Monopoly 15.1 Monopoly and How it Arises 1) A major characteristic of monopoly is A) a single seller of a product. B) multiple sellers of a product. C) two sellers of a product. […]
Chapter 14 6 When Supply Decreases the Price Rises The Price
Copyright © 2011 Pearson Education, Inc. 24) Acme is a perfectly competitive firm. It has the total cost schedule given in the above table. Acme’s product sells for $8.00 per unit. What amount of output is the most profitable and […]
Chapter 14 5 The above figure shows three possible average total cost curves
Copyright © 2011 Pearson Education, Inc. 2) The above figure shows three possible average total cost curves. If all firms in a perfectly competitive industry each have an average total cost curve identical to ATC0, each produces 20 units, and […]
Chapter 14 4 A perfectly competitive market is in equilibrium and then
Copyright © 2011 Pearson Education, Inc. 15) A perfectly competitive market is in equilibrium and then demand decreases. The decrease in demand means the market price will ________ and eventually there will be ________. A) rise; entry by new firms […]
Chapter 14 3 a perfectly competitive firm can experience which of the following
Copyright © 2011 Pearson Education, Inc. 5) In the short run, a perfectly competitive firm can experience which of the following? i. an economic profit ii. an economic loss but it continues to stay open iii. an economic loss equal […]
Chapter 14 2 As a perfectly competitive firm produces more and more
Copyright © 2011 Pearson Education, Inc. 58) As a perfectly competitive firm produces more and more of a good, its economic profit A) constantly increases. B) constantly decreases. C) first decreases, then increases. D) first increases, then decreases. E) does […]
Chapter 14 1 In which market structure do firms exist in very large numbers
Copyright © 2011 Pearson Education, Inc. Foundations of Microeconomics, 5e (Bade/Parkin) Chapter 14 Perfect Competition 14.1 A Firm’s Profit-Maximizing Choices 1) A market with a large number of sellers A) can only be a perfectly competitive market. B) might be […]
Chapter 13 6 The average total cost curve is U-shaped
Copyright © 2011 Pearson Education, Inc. 6) The average total cost curve is U-shaped. At the quantity of output where average total cost is at its minimum, is the marginal cost curve above the average total cost curve, below the […]
Chapter 13 3 What is the total variable cost of producing 60 bikes
Copyright © 2011 Pearson Education, Inc. 15) When marginal cost is positive, total cost is ________ as output increases. A) increasing B) decreasing C) constant D) negative E) undefined Answer: A Topic: Marginal cost Skill: Level 3: Using models Section: […]
Chapter 13 5 Her Total Revenue From Her New Practice
Copyright © 2011 Pearson Education, Inc. The figure above shows a firm’s average total cost and marginal cost curves. 11) Based on the figure above, the firm’s marginal product curve slopes upward at levels of output between ________ and the […]
Chapter 13 4 When the marginal product is increasing as the quantity increases
Copyright © 2011 Pearson Education, Inc. 65) When the marginal product is increasing as the quantity increases, then as the quantity increases the A) average product is decreasing. B) marginal cost is decreasing. C) total cost is decreasing. D) total […]
Chapter 13 2 Total Product Increases More Labor Hired b The
Copyright © 2011 Pearson Education, Inc. 12) Which of the following statements correctly describes a total product curve? A) Points above the total produce curve are efficient. B) The curve shows that output always increases as labor employed increases. C) […]
Chapter 13 1 John fishes for a living. Last year, he sold $100,000 of fish
Copyright © 2011 Pearson Education, Inc. Foundations of Microeconomics, 5e (Bade/Parkin) Chapter 13 Production and Cost 13.1 Economic Cost and Profit 1) The primary goal of a business firm is to A) promote fairness. B) make a quality product. C) […]
Chapter 12 6 Because diamonds Are Not Essential Their Total Utility
Copyright © 2011 Pearson Education, Inc. 12) Amy has the total utility values given above for video rentals a week. Complete the table by calculating her marginal utilities. 101 Answer: The completed table is above. Topic: Marginal utility Skill: Level […]
Chapter 12 5 What Are The Prices Egg Rolland Sushi
Copyright © 2011 Pearson Education, Inc. 56) Suppose you have one point on a demand curve. To plot another point for this demand curve using a group of indifference curves, A) transfer all points from the indifference curve to the […]
Chapter 12 4 French fries Measured The Vertical Axis And Carols
Copyright © 2011 Pearson Education, Inc. The figure above shows the markets for water and diamonds. 5) Based on the figures above, it is the case that the consumer surplus from water ________ the consumer surplus from diamonds and the […]
Chapter 12 3 Reflective Thinking Marginal Utility Per Dollar Calculated
Copyright © 2011 Pearson Education, Inc. 46) The price of coffee increases because of low crop yields. If the consumer’s utility schedule for coffee remains constant, we can predict that coffee consumption A) will increase. B) will decrease. C) will […]
Chapter 12 2 When the price of one good changes while another good’s price
Copyright © 2011 Pearson Education, Inc. 51) When the price of one good changes while another good’s price does not change, then there has been a change in the A) relative price. B) marginal utility price. C) absolute price. D) […]
Chapter 12 1 Where the budget line intersects the y-axis represents a combination
Copyright © 2011 Pearson Education, Inc. Foundations of Microeconomics, 5e (Bade/Parkin) Chapter 12 Consumer Choice and Demand 12.1 Consumption Possibilities 1) A budget line shows the A) quantities of goods a buyer can purchase with given income and prices. B) […]
Chapter 11 3 A problem with pollution charges or taxes as a solution to pollution
Copyright © 2011 Pearson Education, Inc. 100) The figure above shows the marginal social cost curve of generating electricity, the marginal private cost curve, and the demand curve. If the market is competitive and unregulated, the equilibrium quantity is ________ […]
Chapter 11 2 The Figure Above illustrates The Market For Leather
Copyright © 2011 Pearson Education, Inc. 57) The figure above shows the marginal social cost curve of generating electricity and the marginal private cost curve. The marginal cost paid by the producers and everyone else in society when 100 billion […]
Chapter 11 1 The production of electricity creates pollution
Copyright © 2011 Pearson Education, Inc. Foundations of Microeconomics, 5e (Bade/Parkin) Chapter 11 Externalities and the Environment 11.1 Negative Externalities: Pollution 1) When studying pollution and the environment, economists A) have no role to play. B) concentrate on the physical […]
Chapter 11 5 Burning coal to generate electricity can create pollution
Copyright © 2011 Pearson Education, Inc. 10) “According to the Coase theorem, if Gabriel wants the local television station to cease having helicopters fly over his house at night, he will be more likely to be able to reach an […]
Chapter 11 4 When There Are External Costs Unregulated Market
Copyright © 2011 Pearson Education, Inc. 2) In the figure above, when the market is unregulated and in equilibrium, marginal social cost ________ marginal benefit, and the quantity of chemical produced is ________. A) exceeds; above the efficient quantity B) […]
Chapter 10 6 The company Would Provide Zero Because Everyone Would
Copyright © 2011 Pearson Education, Inc. 7) Some resources are private and others are common. Define a common resource, explain the definition, and provide an example of a private resource and a common resource. Answer: A common resource is rival […]
Chapter 10 4 The figure above shows the market for a good with an external
Copyright © 2011 Pearson Education, Inc. 49) The figure above shows the market for a good with an external benefit. If the market is competitive and the government takes no action, the equilibrium quantity is ________ units and the equilibrium […]
Chapter 10 5 When The Market Equilibrium Marginal Social Benefit
Copyright © 2011 Pearson Education, Inc. 95) An external benefit is a benefit from a good or service that someone other than the ________ receives. A) seller of the good or service B) government C) foreign sector D) consumer E) […]
Chapter 10 2 A good that can be consumed even if the consumer
Copyright © 2011 Pearson Education, Inc. 4) A good that can be consumed even if the consumer does not pay for it A) is necessarily rival in consumption. B) completely avoids the free rider problem. C) does not exist because […]
Chapter 10 3 The marginal benefit of a public good is the
Copyright © 2011 Pearson Education, Inc. 58) The marginal benefit of a public good is the A) sum of the marginal benefits of all the individuals at each quantity. B) marginal benefit of the individual person who places the lowest […]
Chapter 10 1 Which of the following goods is best described as nonexcludable
Copyright © 2011 Pearson Education, Inc. Foundations of Microeconomics, 5e (Bade/Parkin) Chapter 10 Public Goods and Public Choices 10.1 Classifying Goods and Resources 1) A good is nonexcludable if A) only the government can produce it. B) nobody can be […]
Chapter 9 5 Producers The Good Being Exported Gain From
Copyright © 2011 Pearson Education, Inc. The figure above shows the U.S. market for T-shirts, where SUS is the domestic supply curve and DUS is the domestic demand curve. The world price of a T-shirt is $5. The U.S. government […]
Chapter 9 4 A tax on a good that is imposed when it is imported is called
Copyright © 2011 Pearson Education, Inc. 72) A tax on a good that is imposed when it is imported is called A) an import quota. B) a VER. C) a tariff. D) a sanction. E) a border tax. Answer: C […]
Chapter 9 3 As a result of U.S. tariffs on fishnets produced in other nations
Copyright © 2011 Pearson Education, Inc. 16) Imposing a tariff on a good leads to a ________ in the price of the product and ________ in imports. A) rise; an increase B) rise; a decrease C) fall; an increase D) […]
Chapter 9 2 The United States exports a good if its no-trade U.S
Copyright © 2011 Pearson Education, Inc. 56) The United States exports a good if its no-trade U.S. price is ________ its world price. With international trade, U.S. production of the good ________ compared to the level of no-trade production. A) […]
Chapter 9 1 Goods and services that the United States buys from
Copyright © 2011 Pearson Education, Inc. Foundations of Microeconomics, 5e (Bade/Parkin) Chapter 9 Global Markets in Action 9.1 How Global Markets Work 1) Goods and services that the United States buys from other nations are called A) exports. B) imports. […]
Chapter 8 6 There Difference The Tax Incidence The Same
96 10) The figure above illustrates the market for antifreeze. Suppose the government decides to impose an $8 sales tax on every gallon of antifreeze sold. a. In the figure, illustrate the effect the tax has on the market for […]
Chapter 8 5 at the market equilibrium with the tax, marginal benefit
Copyright © 2011 Pearson Education, Inc. The figure above shows the market for MP3 players, where S is the supply curve and D is the demand curve before any tax is imposed. The government imposes a $10 per unit tax […]
Chapter 8 4 a social security tax imposed on employers
Copyright © 2011 Pearson Education, Inc. 67) Suppose the supply of labor is more inelastic than the demand for labor. Then, a social security tax imposed on employers A) shifts the demand curve for labor leftward. B) lowers the wage […]
Chapter 8 3 Though The Employer Pays Some The Tax
Copyright © 2011 Pearson Education, Inc. 13) Ann pays $3,850 in taxes on an income of $38,500. Therefore her A) marginal tax rate must be ten percent. B) taxes must be progressive in nature. C) average tax rate must be […]
Chapter 8 2 C topic Tax Incidence Price Wedge skill Level Applying
Copyright © 2011 Pearson Education, Inc. 53) The loss to society resulting from a tax includes the A) deadweight loss. B) consumer surplus paid to the government in the form of tax revenue. C) producer surplus paid to the government […]
Chapter 8 1 The Figure Shows That The Government Has imposed
Copyright © 2011 Pearson Education, Inc. Foundations of Microeconomics, 5e (Bade/Parkin) Chapter 8 Taxes 8.1 Taxes on Buyers and Sellers 1) Tax incidence is the A) burden buyers have to absorb from a tax on goods and services. B) burden […]
Chapter 7 1 When a price ceiling below the equilibrium price is imposed
Copyright © 2011 Pearson Education, Inc. Foundations of Microeconomics, 5e (Bade/Parkin) Chapter 7 Government Actions in Markets 7.1 Price Ceilings 1) A price ceiling A) is an illegal price. B) is the price that exists in a black market. C) […]
Chapter 7 5 What The Equilibrium Price Of the Drug How
Copyright © 2011 Pearson Education, Inc. The figure above shows the market for sugar beets. The government intervenes in this market and sets a support price at $35 a ton. 11) In the figure above, the quantity of sugar beets […]