Archives: Quiz
Chapter 11 Fiscal policy is government action to influence aggregate
Chapter 11—Fiscal Policy MULTIPLE CHOICE 1. A balanced budget is present when: a. the economy is at full employment. b. the actual level of aggregate spending equals the planned level of spending. c. public sector spending equals private sector spending. […]
Chapter 8 7 Suppose a monopolist has costs such that when
Copyright © 2014 Pearson Education, Inc. 38) Suppose a monopolist has costs such that when output is 500 units per hour, average costs are $3. If the monopolist is regulated by a policy of average-cost pricing, the monopolist will charge […]
Chapter 10 They know with certainty what they other firms will do
a. They react slowly to actions taken by other firms b. They lower prices together c. They raise prices together d. They know with certainty what they other firms will do e. They take into consideration how other firms might […]
Chapter 8 6 If Barney got to move first instead of Fred
Copyright © 2014 Pearson Education, Inc. Figure 8.11 11) The path of the game in Figure 8.11 will be A) Fred chooses a large quantity and Barney stays out. B) Fred chooses a large quantity and Barney enters. C) Fred […]
Chapter 10 Which of the following is not a characteristic of the monopolistic
Chapter 10—Monopolistic Competition and Oligopoly MULTIPLE CHOICE 1. Which of the following is not a characteristic of the monopolistic competition market structure? a. Many sellers, each small in size relative to the overall market. b. Few sellers. c. Differentiated product. […]
Chapter 8 5 What Are The Key Characteristics Oligopoly answer
Copyright © 2014 Pearson Education, Inc. 78) What are the key characteristics of an oligopoly? Answer: An oligopoly is an industry in which there are only a few firms. They can sell differentiated products or identical products. Entry is usually […]
Chapter 10 Exhibit 108 Aggregate Demand Shifts From
TOP: Nonprice-Level Determinants of Aggregate Supply KEY: Bloom’s: Comprehension 99. How will an increase in the world price of crude oil influence the economy of an oil-importing country such as the United States? a. Aggregate supply will decrease, leading to […]
Chapter 8 4 Becky But Not For David c Dominant Strategy
Copyright © 2014 Pearson Education, Inc. 15) Which one of the following is the best example of an oligopolistic industry? A) long-distance telephone service B) wheat growers C) apple growers D) public utilities Answer: A Diff: 1 Topic: Oligopoly and […]
Chapter 10 The aggregate demand curve indicates the relationship between
Chapter 10—Aggregate Demand and Supply MULTIPLE CHOICE 1. The aggregate demand curve indicates the relationship between: a. the real wage rate and the quality of resources demanded by producers of goods and services. b. the interest rate and the amount […]
Chapter 8 3 monopolistically competitive firms earn zero economic profits
Copyright © 2014 Pearson Education, Inc. 91) In the long run, monopolistically competitive firms earn zero economic profits. Answer: TRUE Diff: 1 Topic: When Entry Stops: Long-Run Equilibrium Skill: Conceptual AACSB: Reflective Thinking Learning Outcome: Micro-15 92) Some monopolistically competitive […]
Appendix N Which of the following is a characteristic of an indifference
Appendix to Chapter 6—Indifference Curve Analysis MULTIPLE CHOICE 1. Assume an indifference curve yields a consumer 1,000 utils of total utility. If the consumer’s budget increases by 50 percent, then the indifference curve: a. shifts rightward. c. becomes more linear. […]
Chapter 8 2 Under the conditions of monopolistic competition
Copyright © 2014 Pearson Education, Inc. 32) Under the conditions of monopolistic competition A) firm profits are higher in the long run than in the short run. B) average costs of production are the same in the short run as […]
Appendix N the value between the price consumers are willing to pay
Appendix to Chapter 3—Consumer Surplus, Producer Surplus, and Market Efficiency MULTIPLE CHOICE 1. Using supply and demand curve analysis, the triangular area above the equilibrium price and under the demand curve is: a. consumer surplus. b. producer surplus. c. marginal […]
Chapter 8 1 Firms Have Some Control Over Priced There
Copyright © 2014 Pearson Education, Inc. Survey of Economics, 6e (O’Sullivan/Sheffrin/Perez) Chapter 8 Market Entry, Monopolistic Competition, and Oligopoly 8.1 Effects of Market Entry 1) When a second firm enters a monopolist’s market A) market price will drop. B) sales […]
Appendix N Which of the following is used to illustrate an independent
Appendix to Chapter 1—Applying Graphs to Economics MULTIPLE CHOICE 1. A direct relationship exists when: a. there is no association between two variables. b. one variable increases and there is no change in the other variable. c. one variable increases […]
Chapter 7 3 What Its Total Profit Under The Student
Copyright © 2014 Pearson Education, Inc. 10) Price discrimination always benefits A) the firm and may benefit or harm the consumer. B) the consumer and may benefit or harm the firm. C) consumers and firms. D) consumers only. Answer: A […]
Appendix N Keynesian Government Stabilization Policy Designed To move The
Appendix to Chapter 16—Policy Disputes Using the Self-Correcting Aggregate Demand and Supply Model MULTIPLE CHOICE 1. Classical theory advocates ____ policy and Keynesian theory advocates ____ policy. a. nonintervention; intervention c. stabilization; fixed wage b. active; nonstabilization d. fixed rule; […]
Chapter 7 2 Which of the following is true in the long run
Copyright © 2014 Pearson Education, Inc. 3) Which of the following is true in the long run for both monopoly and perfectly competitive industries? A) There are low barriers to entry. B) Firms can earn positive economic profits in the […]
Appendix N If Bill is willing to pay $10 for one good X
Appendix to Chapter 3—Consumer Surplus, Producer Surplus, and Market Efficiency MULTIPLE CHOICE 1. Consumer surplus is the: a. number of consumers who are excluded from a market because of scarcity. b. amount of a good that consumers will buy at […]
Chapter 7 1 Which of the following is NOT a characteristic of a monopoly
Copyright © 2014 Pearson Education, Inc. Survey of Economics, 6e (O’Sullivan/Sheffrin/Perez) Chapter 7 Monopoly and Price Discrimination 7.1 The Monopolist’s Output Decision 1) A market served by only one firm is called a(n) A) perfectly competitive market. B) monopoly. C) […]
Appendix N Which of the following pairs is the most likely to exhibit
Appendix to Chapter 1—Applying Graphs to Economics MULTIPLE CHOICE 1. A direct relationship exists when: a. there is no association between two variables. b. one variable increases and there is no change in the other variable. c. one variable increases […]
Chapter 6 3 The summation of all individual firm marginal cost curves
Copyright © 2014 Pearson Education, Inc. Figure 6.4 38) Figure 6.4 represents a perfectly competitive firm’s costs. Illustrate the firm’s shut-down price on the graph. Explain. 41 Answer: The firm’s shut-down price is defined as the price at which the […]
Chapter 9 the monopolist’s total cost is which of the following areas
e. Increase price and hold output constant. 83. According to the information provided in Exhibit 9-7, if the Rudd Ice Company was a monopoly and is currently charging a price of $6, what would you advise Rudd to do? a. […]
Chapter 6 2 Variable Cost And The Shutdown Decision Graphing skill
Copyright © 2014 Pearson Education, Inc. 28) If the firm is incurring losses in the short run, then which of the following is true? A) P < ATC B) P > ATC C) P > MC D) MC > ATC […]
Chapter 9 limiting the entry of potential competitors into a market
Chapter 9—Monopoly MULTIPLE CHOICE 1. Which of the following is not associated with the monopoly market structure? a. Many sellers. b. A single seller. c. A unique product. d. Impossible entry into the market. 2. Which of the following factors […]
Chapter 6 4 You notice that the price of butter falls and then rises
Copyright © 2014 Pearson Education, Inc. 12) You notice that the price of butter falls and then rises. The best explanation for this is that A) demand for butter increased causing price to fall, which attracted other firms to enter […]
Chapter 9 Which of the following options could be used to eliminate a
106. An increase in government expenditures by $100 (unmatched by an increase in taxes) would, if the MPC = 0.90, result in an increase in real GDP by: a. $1,000. b. $9,000. c. $900. d. $190. e. inadequate information is […]
Chapter 6 1 What is the characteristic of a perfectly competitive firm
Copyright © 2014 Pearson Education, Inc. Survey of Economics, 6e (O’Sullivan/Sheffrin/Perez) Chapter 6 Perfect Competition 6.1 Preview of the Four Market Structures 1) What is the characteristic of a perfectly competitive firm that causes it to be a price taker? […]
Chapter 9 Within the framework of the Keynesian model
Chapter 9—The Keynesian Model in Action MULTIPLE CHOICE 1. Using the Keynesian aggregate expenditures model, which of the following is true? a. Macro equilibrium may occur at levels of real GDP other than full-employment real GDP. b. At any macro […]
Chapter 5 4 Suppose that Gigantic Company is increasing in size
Copyright © 2014 Pearson Education, Inc. 20) Suppose that Gigantic Company is increasing in size. As Gigantic Company grows, they are able to buy inputs in bulk, resulting in lower input prices. It is likely that continued growth will result […]
Chapter 8 Three Types Long run Supply Curves Assume The
Exhibit 8-15 Short-run cost curves for E-Z Care lawn mowing company 158. In Exhibit 8-15, if the market price of mowing lawns is $16 per lawn, then E-Z-Care will earn the biggest profit by mowing: a. 5 lawns per day. […]
Chapter 5 3 It implies That Output Will Increase Decreasing Rate
Copyright © 2014 Pearson Education, Inc. 80) Suppose you know that at the current level of production average total cost equals marginal cost, then you know that it is also true that A) fixed costs are zero. B) average fixed […]
Chapter 8 When the price of a good is a constant, the marginal revenue
95. Marginal revenue is the change in: a. total revenue resulting from a one unit change in output. b. total revenue resulting from a change in marginal cost. c. price resulting from a one unit change in output. d. none […]
Chapter 5 2 which shows a family of average cost curves
Copyright © 2014 Pearson Education, Inc. Figure 5.1 28) Refer to Figure 5.1, which shows a family of average cost curves. The average total cost curve is represented by A) Curve 1. B) Curve 2. C) Curve 3. D) the […]
Chapter 8 The firms in the market produce differentiated products
Chapter 8—Perfect Competition MULTIPLE CHOICE 1. Which of the following is not a characteristic of the structure of perfectly competitive markets? a. Each individual firm is small in size relative to the overall market. b. Few sellers. c. Homogeneous product. […]
Chapter 5 1 The Short Run The Period Time Over
Copyright © 2014 Pearson Education, Inc. Survey of Economics, 6e (O’Sullivan/Sheffrin/Perez) Chapter 5 Production Technology and Cost 5.1 Economic Cost and Economic Profit 1) In the short run, ________ factors of production are fixed, while in the long run, ________ […]
Chapter 8 Introducing Classical Theory And The Keynesian Revolution key
171. As shown in Exhibit 8-5, autonomous consumption is: a. 0. b. $1 trillion. c. $2 trillion. d. $3 trillion. e. $6 trillion. 172. As shown in Exhibit 8-5, this economy is in macro equilibrium at: a. $2 trillion. c. […]
Chapter 4 5 Suppose that the price elasticity of supply
Copyright © 2014 Pearson Education, Inc. Figure 4.4 31) In Figure 4.4 supply is perfectly inelastic in graph A) A. B) B. C) C. D) D. 75 Answer: A Diff: 2 Topic: Extreme Cases: Perfectly Inelastic Supply and Perfectly Elastic […]
Chapter 8 The change in saving divided by the change in disposable income
103. The marginal propensity to save (MPS) is computed as the change in: a. savings divided by the change in saving. b. savings divided by the change in disposable personal income. c. saving divided by the change in GDP. d. […]
Chapter 4 4 If an increase in the price of good X results in a
Copyright © 2014 Pearson Education, Inc. 25) If an increase in the price of good X results in a decrease in the quantity of Y demanded, A) good X and good Y are substitutes. B) good X and good Y […]
Chapter 8 classical economists believed that a recessionary downturn would
Chapter 8—The Keynesian Model MULTIPLE CHOICE 1. Classical economists believed that: a. price flexibility automatically directs market economies to full employment. b. budget deficits and surpluses were necessary for the control of economic fluctuations. c. market economies suffer prolonged periods […]
Chapter 4 3 Why would a bumper crop be bad news for farmers
Copyright © 2014 Pearson Education, Inc. 31) Why would a bumper crop be bad news for farmers? A) Their crop has an inelastic demand and the resulting drop in price reduces their total revenue. B) Their crop has an elastic […]
Chapter 7 Which of the following must be true if average total cost is rising
170. In Exhibit 7-13, AFC is shown by the graph labeled: a. I. b. II. c. III. d. IV. e. V. ANS: A PTS: 1 DIF: Challenging NAT: BUSPROG: Analytic STA: DISC: Costs of production TOP: Short-Run Cost Formulas KEY: […]
Chapter 4 2 Senior Citizens Living Low Income And With
Copyright © 2014 Pearson Education, Inc. 59) Which of the following products has the most elastic demand? A) Ben and Jerry’s Chunky Monkey ice cream in the pint container B) all Ben and Jerry’s ice cream C) all premium ice […]
Chapter 7 The total fixed cost remains constant as which of the following varies
KEY: Bloom’s: Comprehension 96. In the short run, if average variable cost equals $50, average total cost equals $75, and output equals 100, the total fixed cost must be: a. $25. c. $5,000. b. $2,500. d. $7,500. 97. The total […]
Chapter 4 1 The price elasticity of demand reflects the responsiveness of
Copyright © 2014 Pearson Education, Inc. Survey of Economics, 6e (O’Sullivan/Sheffrin/Perez) Chapter 4 Elasticity: A Measure of Responsiveness 4.1 The Price Elasticity of Demand 1) The price elasticity of demand reflects the responsiveness of A) firms to changes in demand. […]
Chapter 7 Which of the following is an explicit cost
Chapter 7—Production Costs MULTIPLE CHOICE 1. Which of the following is an explicit cost? a. The opportunity cost of an owner/entrepreneur’s time invested in the firm. b. The opportunity cost of the money the business owner/entrepreneur has invested in the […]
Chapter 3 3 The Decline Honeybees Threatens 15 Billion Worth
Copyright © 2014 Pearson Education, Inc. 9) Olives are used to produce olive oil. If the price of olives increases A) the demand for olive oil increases. B) the demand for olive oil decreases. C) the supply of olive oil […]
Chapter 7 If the inflation rate was 10 percent last year
Chapter 7—Inflation MULTIPLE CHOICE 1. The best definition of inflation is a(n): a. temporary increase in prices. b. increase in the price of one important commodity such as food. c. persistent increase in the general level of prices as measured […]
Chapter 3 2 If the quantity of a product demanded is greater than
Copyright © 2014 Pearson Education, Inc. 18) If the quantity of a product demanded is greater than the quantity of a product supplied, there is pressure in the market to push the price downward. Answer: FALSE Diff: 1 Topic: Market […]