Extra Credit Pop Quiz Questions and Answers PDF

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Pop Quiz E201 Fall 2018 (Morrison) Quiche 24 30 Dave Danica Peach Pie 16 24 1. The table above shows how much quiche or pie Dave and Danica can produce in one day if each spent all of their productive resources making only quiche or only peach pie. Danica has a(n) advantage in producing quiche, and ...

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Pop Quiz #1 – E201 (Ch.1-7) – Fall 2018 (Morrison)

Quiche 24 30

Dave Danica

Peach Pie 16 24

1. The table above shows how much quiche or pie Dave and Danica can produce in one day if each spent all of their productive resources making only quiche or only peach pie. Danica has a(n) ______ advantage in producing quiche, and _______ has a comparative advantage in producing peach pie. A) Comparative; Dave B) Comparative; Danica C) Absolute; Dave D) Absolute; Danica

2. (Table: The Market for Soda) Look at the table The Market for Soda above. If the government imposes a price ceiling of $1.25 per can of soda, the quantity of soda supplied will be: A) 7 cans. B) 8 cans. C) 4 cans. D) 10 cans. 3. Maximum total surplus in the market for chocolate occurs when: A) total net gain to producers is minimized. B) all consumers who value chocolate can buy chocolate. C) all producers can sell their chocolate. D) the market is in equilibrium.

4. An increase in the supply of a good is caused by: A) input prices rising. B) a fall in the price of the good. C) an increase in the number of sellers. D) Imposition of a binding price ceiling.

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5. (Table: Market for Pizza) Look at the table Market for Pizza above. When income changes from $1,000 to $1,400 per month, the income elasticity of demand for pizza, by the midpoint method, at a price of $14 per pizza is: A) –1. B) 1. C) 1.25. D) 1.5.

Figure: The Average Total Cost Curve

6. (Figure: The Average Total Cost Curve) Look at the figure The Average Total Cost Curve. The total cost of producing three pairs of boots is approximately: A) $360. B) $75. C) $225. D) $25. 7. Once diminishing returns have set in, as output increases, the total cost curve: A) gets flatter. B) becomes horizontal. C) increases at first, and then decreases. D) gets steeper. Page 2

8. Consider a perfectly competitive firm in the short run. Assume that it is sustaining economic losses but continues to produce at the profit-maximizing (loss-minimizing) output. Which statement is FALSE? A) Marginal cost is less than average total cost. B) Marginal cost is equal to marginal revenue. C) Price is equal to marginal cost. D) Marginal cost is less than average variable cost. 9. The marginal product of labor is all of the following EXCEPT: A) positive at some levels of input and possibly negative at others. B) the change in output resulting from a one-unit change in labor. C) total product divided by total labor. D) the slope of the total product curve.

10. Which factor is important in determining the price elasticity of supply? A) the time the producer has to adjust inputs and outputs B) the number of close substitutes C) the intensity of the need of consumers D) the number of alternative uses of the good

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