Archives: Quiz

Which of the following is not an explicit cost? a. salaries b. sales taxes c. the cost of utilities, such as gas and electricity d. insurance premiums e. the value of a firm owner’s time Which of the following is […]

If there is a $1 per box tax imposed on the sale of tea and the price paid by consumers increases by $0.50, what may we conclude about the price elasticities of demand and supply? a. The elasticity of supply […]

Opportunity cost is the difference between the benefits and the costs of a choice. a. True b. False A firm with positive accounting profit may be suffering an economic loss. a. True b. False Answer: A A disadvantage of the […]

Most economics graphs reflect the relationship between how many economic variables? a. three b. two c. four d. thirty e. twenty Firms in a high-wage nation such as the U.S. can compete effectively with imports from low-wage nations if a. […]

If a given value of x is associated with a particular value of y, a. then x causes y b. then y causes x c. then x and y must be logically connected d. there are no other variables that […]

Tim Tupper contracts with two other students to help him provide a term paper-typing service. In the last two weeks of the semester, he sees a tremendous increase in demand. His profit-maximizing response would be represented by a. a rightward […]

Two goods are considered substitutes only if a(n) a. decrease in the demand for one leads to a decrease in the supply of the other b. increase in the demand for one leads to a decrease in the supply of […]

If a firm is using a resource hired in a perfectly competitive market, and if the price of the resource exceeds the marginal revenue product of the resource, a. more of the resource should be used b. less of the […]

Goods with an income elasticity of demand greater than 1 are called a. necessities b. inferior goods c. normal goods d. luxuries e. complements The study of how nations deal with the problem of scarcity is the domain of a. […]

If a perfectly competitive firm shuts down in the short run, its total cost equals zero. a. True b. False Exhibit 2-4 Point g in Exhibit 2-4 is efficient because a. the only way to increase production of A is […]

The demand for a resource is derived from the demand for the final product it helps to produce. a. True b. False If the demand for a good is very price elastic, the imposition of a tax on that good […]

Monopolistic competition is different from perfect competition because monopolistic competitors produce a. a homogeneous product b. a homogeneous but unique product c. identical products d. differentiated products e. products similar to those produced by a monopoly A good or service […]

The supply of loanable funds curve is a. upward sloping because fewer people are persuaded to forgo current consumption as the interest rate rises b. downward sloping, showing that more investment will be undertaken as inflation decreases c. upward sloping […]

Tacit collusion occurs in industries that a. are monopolistically competitive b. contain price leaders c. experience rapid technological change d. are regulated e. produce very differentiated products Which of the following would be considered a secondary effect of rent control. […]

Exhibit 16-5 Exhibit 16-5 represents the market for leaf tobacco. Suppose the government imposes a floor of $1.25 in this market. How much consumer surplus would be gained in the face of this price support? a. $900 b. $975 c. […]

Compared to regular grocery stores, convenience stores have a. higher prices and a more limited selection of goods b. higher prices and a greater selection of goods c. lower prices and a more limited selection of goods d. lower prices […]

Exhibit 7-17 In Exhibit 7-17, the firm would prefer producing at point b to a. points a and c only because b represents the same output at lower cost b. points a and c only because b represents higher output […]

If a consumer’s income rises, a. her indifference curves shift inward b. her indifference curves shift outward c. her budget line shifts outward d. her budget line shifts inward e. the slope of her budget line increases Exhibit 14-3 Jira […]

A labor union is a group of a. employees who join together to improve their working conditions b. firms that join together to hire workers c. firms that work together to negotiate better prices in the market d. farmers who […]

Exhibit 14-1 Which of the following is indicated in Exhibit 14-1? a. Rubber is cheaper to produce than tires. b. The total cost of producing 100,000 tires is greater than the total cost of producing 200,000 tires. c. The minimum […]

The present value of a given payment will be lower a. if the payment comes sooner than expected b. the lower the prevailing interest rate c. the further in the future the payment is to be received d. the sooner […]

If government regulators force a natural monopoly to produce where price equals marginal cost, the monopoly will earn a. a “fair return” b. positive economic profit c. zero economic profit d. negative economic profit e. greater economic profit than if […]

The economic question of what will be produced is a. primarily answered by the government in a system of pure capitalism b. primarily answered by markets in a command economy c. faced by all economies regardless of their wealth d. […]

People have less incentive to invest the more concerned they are that their investment will not be a. appropriated by government b. stolen by thieves c. protected from high tax rates d. destroyed by civil unrest e. blown up by […]

The effect of a decrease in the price of personal computers, other things constant, is likely to be best represented by which of the following? a. a leftward shift of the demand curve b. a movement leftward along the demand […]

Which of the following is one of the chief reasons for the increased number of married women in the U.S. work force? a. The marginal cost of working in the labor force has increased. b. Jobs provide greater independence and […]

Poor welfare recipients face higher marginal tax rates than do the richest families. a. True b. False A tax on imports equal to a percentage of the cost of those imports is known as a. a specific tariff b. an […]

Exhibit 8-2 Given the information in Exhibit 8-2, the price of a wool blanket a. is $10 b. is $20 c. is $30 d. is $40 e. depends on the quantity sold In economics, capital is defined as a. natural […]

Exhibit 7-5 In Exhibit 7-5, what are variable costs at 15 units of output? a. $30 b. $10 c. $1 d. $20 e. it is impossible to calculate variable cost unless we know the daily wage Exhibit 9-4 Answer: D […]

Levying a tax on a good when demand is very elastic will generate a large amount of tax revenue for the government. a. True b. False A production possibilities frontier will shift inward if there is more unemployment of labor. […]

Firms a. are where entrepreneurs combine resources b. are economic units formed by profit-seeking entrepreneurs c. are assumed to try to maximize profit d. reward entrepreneurs with profits, which are sales revenue minus the cost of production e. All of […]

Of the three levels of government in the United States, a. only the federal government provides public goods b. only the federal government has the power to tax c. local governments are primarily responsible for primary and secondary education d. […]

If one person has the absolute advantage in producing both of two goods, then that person a. must also have a comparative advantage in both goods b. cannot benefit from trade c. cannot have a comparative advantage in either good […]

A decrease in demand for a good could mean that a. consumers are willing to pay a higher price for each quantity of the good b. consumers are willing to buy larger quantities of the good at each price c. […]

According to the Coase theorem, in order to solve a negative externality problem efficiently, a. the property right must be assigned to the party with the least-cost alternative b. the property right must be assigned to the victim of pollution […]

In the market for chewing gum, the current price is 50 cents per pack and 100,000 packs are sold. Which of the following events would lead to a new equilibrium price of 60cents and quantity of 90,000 packs? a. an […]

Although older computers used tape cartridges, today’s computers use reel-to-reel tape drives. A utility program allows a user to perform maintenance-type tasks related to managing a computer, its devices, or its programs. Answer: T Types of services offered by cloud […]

Wireless music systems include a FireWire transmitter that plugs into a computer, a receiver that connects to a television or stereo system, and a remote control. _________________________ A popular use of CD-RW and CD-R discs is to create audio CDs. […]

Despite their larger size, national ISPs usually offer fewer services and have a smaller technical support staff than regional ISPs. Current personal computer hard disks typically have storage capacities of less than 20 GB. Answer: F Some operating systems and […]

Horizontal market software typically is more expensive than vertical market software. While many digital cameras look like a traditional camera, some models are built in smart phones and other personal mobile devices. Answer: T Deleting unneeded files reduces the size […]

Many small office/home office users (SOHO) have entered the ____________________ arena and conduct business on the Web. The focus of the ACM is computer science and computer science education. _________________________ Answer: T ____________________ refers to memory chips storing permanent data […]

The term ____________________ refers to online or Internet-based illegal acts. When you purchase a computer, it usually includes a boot disk. Answer: T ____________________ is a category of output that includes music, narrations, and speeches. Answer: Audio With ISDN, the […]

Vehicles manufactured today often include some type of onboard navigation system. SSDs have a lower failure rate than hard disks. _________________________ Answer: F, higher In an application generator, a(n) ____________________ enables a developer to create lists of commands for the […]

A(n) laser printer produces printed images when tiny wire pins on a print head mechanism strike an inked ribbon. _________________________ ____________________ uses serial signals to transfer data, instructions, and information. Answer: SATA Serial Advanced Technology Attachment SATA (Serial Advanced Technology […]

When pressed, the APPLICATION key displays the Start menu. When a computer is turned on, the charge of electricity causes the processor chip to reset itself and find the ROM chip(s) that contains the BIOS. Answer: T A(n) ____________________ displays […]

Individual groups or departments often extract data from a data warehouse to create their data stations. Links on a Web page allow users to obtain information in a linear way. _________________________ Answer: F, nonlinear A field is a group of […]

With game consoles, the output device often is a television. A geographic information system (GIS) database stores audio messages. Answer: F On a class diagram, every object in a class shares methods and attributes that are part of its higher-level […]

In a worksheet, one or more letters identify each row. Process modeling sometimes is called object-oriented design. Answer: F Answer: F After users approve an ERD, the systems analyst identifies data items associated with an entity. ____________________ information can be […]

____________________ is a programming certification sponsored by the IEEE Computer Society that tests advanced knowledge of software development process and tools. Upon completion of a trade school education, students often receive a certificate. Answer: T Hundreds of procedural languages exist. […]

A hard disk platter’s spinning motion creates a cushion of air above the read/write head, which ensures that the read/write head makes contact with the platter surface instead of floating above the platter. All software companies specialize in a particular […]