Archives: Quiz
Chapter 25 5 How Does Differfrom Perfect Competitoranswer The Short
264) Refer to the above figure. Which panel shows a possible short–run equilibrium for monopolistic competition, but is not also a long–run equilibrium? 264) A) Panel A B) Panel B C) Panel C D) Panel D 265) In the long […]
Chapter 25 4 Which of the following describes monopolistic
200) In the long run, both monopolistically competitive and perfectly competitive firms attain 200) A) zero economic profits. B) productive efficiency. C) positive economic profits. D) lowest cost production. 201) In a monopolistically competitive market, entry into the industry 201) […]
Chapter 25 3 The Above Figure This Profit
137) Refer to the above figure. The figure shows the cost structure of a firm producing an information product. Which curve would represent the marginal cost for an information product? 137) A) Curve 1 B) Curve 2 C) Curve 3 […]
Chapter 25 2 Which Statement Incorrect With Respect
72) Use the above figure. The economic profit for this firm is 72) A) the distance between T and x–axis. B) zero. C) the distance between E and x–axis. D) the distance between T and E. 73) An information product […]
Chapter 25 1 Aexplanation35abcd113940 The Above Figure The Monopolistically Competitive
Exam Name___________________________________ MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) An information product is a product for which 1) A) the first unit is very costly to make but additional units are […]
Chapter 24 7 The Marginal Revenue Curve Liesbelow The Demand
384) Using a graph, show the profits of a monopoly. Suppose fixed costs increased enough to make the firm earn an economic loss. Show such a situation. Would the monopolist earn economic losses in the long run? Why or why […]
Chapter 24 6 Why answer Disagree The Monopolist Limited The Demand
333) Monopolies misallocate resources because 333) A) price does not equal average variable cost. B) marginal cost does not equal average total cost. C) profits are usually positive. D) price does not equal marginal cost. 334) Refer to the above […]
Chapter 24 5 Monopolist Has Four Distinct Groups Customers
264) Which of the following is TRUE of a perfectly competitive firm and a monopoly in the long run? 264) A) P = ATC B) P = MC C) MR = MC D) P = MR 265) If a monopolist […]
Chapter 24 4 Which The Following Would Best Describe
194) Which of the following would best describe the demand curve faced by a monopoly firm? 194) A) horizontal line at the market price B) same as the market demand curve C) vertical line at the output level D) same […]
Chapter 24 3 The Drug Would Have Many Close Substitutesd
125) The portion of consumer surplus that no one in society is able to obtain in a situation of monopoly is known as 125) A) a deadweight loss. B) a market failure. C) a market externality. D) an unrealized loss. […]
Chapter 24 2 The Price Elasticity Demand For Monopolists
61) In the above figure, the distance between A and B represents this monopoly firm’s 61) A) average profit per unit. B) total revenue. C) total profit. D) average cost per unit. 62) A barrier to entry 62) A) usually […]
Chapter 24 1 The Above Figure What The Profit
Exam Name___________________________________ MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) Which of the following is NOT a necessary condition for price discrimination? 1) A) downward sloping demand curve B) having a constant […]
Chapter 23 7 As such, there is a level of output at which total profits the difference
402) What does a perfectly competitive firm do to maximize profits? 403) “A perfect competitor should maximize total revenues.” Do you agree or disagree? Explain. Answer: Disagree. A perfect competitor should maximize total profits instead of total revenues. Because the […]
Chapter 23 6 The Long Run The Price For
339) In the above figure, at the profit–maximizing rate of production for the perfectly competitive firm total cost is 339) A) $70. B) $30. C) $100. D) $130. 340) The demand curve faced by a perfectly competitive industry 340) A) […]
Chapter 23 5 The Opportunity Cost Society Producing One
272) Refer to the above figure. If the market price is equal to A, which statement can be made about economic profits? 272) A) Economic profits are negative and equal to GCEF. B) Economic profits are positive and equal to […]
Chapter 23 4 Perfectly Competitive Firm Producing Output Which
201) If a perfectly competitive firm is producing at an output at which marginal cost exceeds marginal revenue 201) A) the firm should expand production. B) the firm should reduce production. C) price will be at the profit maximizing level. […]
Chapter 23 2 Firm Will Shut Down The Short
65) Marginal revenue is 65) A) change in total revenue/change in output. B) total revenue/change in output. C) change in total revenue/output. D) total revenue/output. 66) For the perfectly competitive firm, price 66) A) equals average total cost. B) depends […]
Chapter 23 1 For Firm This Market Mr Output 100
Exam Name___________________________________ MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. Total Output Costs 0 $8 1 13 2 16 3 21 4 30 5 45 1) Refer to the above table. The table […]
Chapter 23 3 Firms Long Run Position Under Perfect
131) In a perfectly competitive market structure any firm can enter or leave the industry without serious impediments. This implies 131) A) consumers are able to find out about lower prices charged by other firms. B) the products sold will […]
Chapter 22 6 Assuming Labor The Only Variable Input
341) The short run is 341) A) up to three years. B) the period of time in which the firm can vary its rate of output. C) a year or less. D) the period of time in which the firm […]
Chapter 22 5 The locus of points representing the minimum unit cost of producing
280) Which of the following would be a fixed input to an automobile firm? 280) A) engineers B) a factory in Detroit C) car batteries D) steel 281) Which of the following would NOT be considered a fixed cost of […]
Chapter 22 4 Refer The Above Figure The Curve
212) As a firm increases the level of output that it produces, short–run average fixed cost 212) A) decreases up to a particular level of output and then increases. B) decreases. C) rises and then falls. D) remains constant since […]
Chapter 22 3 At what quantity of labor does the marginal cost curve start to
QTFC TVC TC 0$90 $ 0 $ 90 190 25 115 290 32 122 390 42 132 490 64 154 590 95 185 137) Refer to the above table. When output rises from 4 units to 5 units, marginal costs […]
Chapter 22 2 The Amount Variable Input Increases While
69) Which of the following statements with respect to the figure below is INCORRECT? 69) A) If the permanent rate of output increases to Q2 in panel (a), it will be more profitable to have a plant size corresponding to […]
Chapter 22 1 Fixed Costsabcd10d Marginal Costs 35 Which The
Exam Name___________________________________ MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) Refer to the above figure. Diseconomies of scale exist 1) A) over the entire range of output. B) up to output Q2. […]
Chapter 21 6 Explain Your Answer Economic Rent Payment For
415) The higher are a firm’s risk–corrected returns, 415) A) the more advantage it has in obtaining investor financing. B) the more difficulty it will have financing its expansion plans. C) the lower are its labor costs. D) the higher […]
Chapter 21 5 Suppose The Best Investment You Could
352) Bonnie is debating whether to take a job as a professional therapist or a florist. She will earn $40,000 a year as a therapist or $30,000 a year as a florist. If she chooses to be a therapist, the […]
Chapter 21 4 True a Partnerships Are Larger Than Both Proprietorships
264) According to Ricardo’s explanation of land rent, what happens when the demand for land increases? 264) A) Revenues to owners of land increase but economic rent declines. B) The supply curve shifts to the right just enough to keep […]
Chapter 21 3 Any increases indemand for this property increases
173) All of the following are advantages of a corporation EXCEPT 173) A) unlimited life. B) limited liability. C) ability to raise large sums of financial capital. D) double taxation. 174) In a partnership of two people 174) A) the […]
Chapter 21 2 Corporations Are Able Raise Large Amounts Financial
88) Bonnie is debating whether to take a job as a professional therapist or a florist. She will earn $40,000 a year as a therapist or $22,000 a year as a florist. If she chooses to be a therapist, the […]
Chapter 21 1 Uncertain Need Know The Interest Rate answer explanation
Exam Name___________________________________ MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) The Hawaiian island of Lana’i is privately owned by Castle & Cooke and for generations most of its land was used to […]
Chapter 20 8 Maximize Utility The Consumer Allocates Income
Answer Key Testname: C20 133 1) A 2) D 3) D 4) B 5) A 6) B 7) A 8) A 9) D 10) B 11) C 12) B 13) C 14) D 15) A 16) D 17) B 18) […]
Chapter 20 7 Suppose That Jacob Going Buffet Restaurant That
408) Refer to the above figures. Amy’s total utility for chocolate chip cookies reaches a maximum at 4 cookies. Which panel best represents marginal utility? 408) A) Panel A B) Panel B C) Panel C D) Panel D 409) Why […]
Chapter 20 6 Consumer Optimum Consuming And And The
Glasses of Water Total Utility Marginal Utility 1100 2175 3225 4250 5260 6255 341) Using the above table, the marginal utility for the sixth glass of water is 341) A) 5 utils. B) 260 utils. C) 255 utils. D) –5 […]
Chapter 20 5 The Reason For This Change That Thea
275) Refer to the above figure. Given the indifference map and budget constraint represented above, what would make all possible points attainable for the individual to consume? 275) A) a decrease in income B) a decrease in the price of […]
Chapter 20 4 If a consumer concludes that the marginal utility of the last
211) Dave is undecided about whether to eat at a restaurant or to order pizza at home. He then obtains a coupon for 20 percent off at the restaurant and decides to go there to eat. This is an example […]
Chapter 20 3 the satisfaction from consuming A is more than
Quantity of Movies Michelle’s Total Robert’s Total Watched per Week Utility per Week Utility per Week 0 0 0 1100 100 2195 190 3270 270 4340 340 5390 400 6420 350 7435 390 8445 420 9450 440 10 440 450 […]
Chapter 20 2 Bob Experiences Diminishing Marginal Utility After Consuming
Quantity of Movies Michelle’s Total Robert’s Total Watched per Week Utility per Week Utility per Week 0 0 0 1100 100 2195 190 3270 270 4340 340 5390 400 6420 350 7435 390 8445 420 9450 440 10 440 450 […]
Chapter 20 1 What does point N represent?
Exam Name___________________________________ MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) The price of good “a” is $5 and the price of good “b” is $15. If the marginal utility of good “a” […]
Chapter 19 6 The Effect Price Change Revenues Depends Whether
380) If the supply of a good is perfectly inelastic, the price elasticity of supply will equal 380) A) zero. B) positive infinity. C) one. D) none of the above. 381) The longer the time frame involved, the more likely […]
Chapter 19 5 Goods Are Completely Unrelated Their Cross
316) A perfectly elastic supply curve is 316) A) a horizontal straight line. B) a vertical straight line. C) a straight line coming out of the origin. D) a straight line that crosses the horizontal axis. 317) When demand is […]
Chapter 19 4 When The Price Cable Modems Decreased
242) Refer to the above figure. Demand will be unit–elastic when quantity is between 242) A) 0 and B. B) B and C. C) A and B. D) 0 and A. 243) The slope of the perfectly inelastic demand curve […]
Chapter 19 3 The Price Elasticity Demand Isa Always
161) The value of the absolute price elasticity of demand for good X is 4. The absolute price elasticity for good Y is 1. Which good’s quantity demanded is more responsive to a change in price? 161) A) Good X […]
Chapter 19 2 Supply Curve That Parallel The Quantity
Pounds of Artisan Jars of Period Income/Week Bread Sold Jam Sold 1 $250 210 2 $500 5 8 78) Use the above table. Based on the information in the table, jam is a(n) 78) A) inferior good. B) normal good. […]
Chapter 19 1 Income elasticity of demand reflects
Exam Name___________________________________ MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) Consider the following data: Price of A Quantity Demanded of A $5 6 $4 10 The absolute value of the price elasticity […]
Chapter 6 3 What Are The Three Sources Funding For
147) A state tax assessed specifically on cigarettes is an example of 147) A) a tariff. B) a social tax. C) a consumption tax. D) an excise tax. 148) The marginal tax rate is 148) A) total tax due/total taxable […]
Chapter 6 2 Us Treasury Money Creation Private Borrowing Government
80) Using the above figure, if the government levies a new unit tax in this market, S represents the original supply curve, and St represents the after–tax supply curve, then the revenues that the government collects from imposing this tax […]
Chapter 6 1 Family Hasincome 30000 And Family Has Income
Exam Name___________________________________ MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) A 5 percent tax is going to be applied to a $100,000 tax base. What can be said about the revenue collected […]
Accounting Chapter 26 Special Assignments Special Assignment Audits Arise The
Copyright © 2017 Pearson Education, Inc. 2) Which of the following is not one of the major differences between financial and operational auditing? A) The financial audit is oriented to the past, but an operational audit concerns performance for the […]
Chapter 5 5 Which The Following Example Public
301) The free–rider problem is 301) A) the use of private goods in one state by residents of another state. B) that people cannot be forced to accept public goods. C) the incentive that people have once they are receiving […]