Microeconomics Final Multiple Choice Flashcards Quizlet PDF

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12/27/21, 9:02 AM

MICROECONOMICS FINAL MULTIPLE CHOICE Flashcards | Quizlet

MICROECONOMICS FINAL MULTIPLE CHOICE 13 studiers recently

Terms in this set (70) Economics is the study of:

the institutional structure through which individuals

a. the institutional structure

in a society coordinate their

through which governments

diverse wants and desires.

coordinate the wants and desires of individuals. b. the institutional structure through which individuals in a society coordinate their diverse wants and desires. c. how societies coordinate production so that all its participants' diverse wants and desires are met. d. how governments coordinate production so that all its participants' diverse wants and desires are met.

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The following table represents

1 percentage point increase of the unemployment

the choice faced by policy

rate.

makers given the current set of U.S. institutions and technology. What is the opportunity cost of reducing the rate of inflation from 7 percent to 5 percent?

a. 1 percentage point increase of the unemployment rate. b. 2 percentage points increase of the unemployment rate. c. 1 percentage point decrease of the inflation rate. d. 2 percentage points increase of the inflation rat

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Which of the following

Political, social, and historical forces play very little

statements about the

role in the coordination of

characteristics of a capitalist

economic decisions.

system is FALSE? a. The questions of what, how, and for whom to produce are reflections of the desires of individuals. b. Distribution is to each individual according to his or her ability, effort, and inherited property. c. Market forces of supply and demand coordinate economic activity. d. Political, social, and historical forces play very little role in the coordination of economic decisions.

To engage in economic

marginal cost and marginal benefit.

reasoning, you must compare: a. total cost and total benefit. b. marginal cost, sunk cost, and total benefit. c. sunk cost and marginal cost. d. marginal cost and marginal benefit.

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An economic theory is:

a generalizations about the workings of an abstract

a. a generalizations about the

economy.

workings of an abstract economy. b. a physical or mental structure that significantly influences economic decisions. c. an action taken to influence the course of economic events. d. an absolute truth concerning the workings of the real world.

Mexico has a comparative

if its opportunity cost of producing corn is lower

advantage in producing corn:

than the opportunity cost in other

a. if its opportunity cost of

countries.

producing corn is higher than the opportunity cost in other countries. b. if its opportunity cost of producing corn is lower than the opportunity cost in other countries. c. if its opportunity cost of producing corn is the same as the opportunity cost in other countries. d. if it can produce more corn that other countries.

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All of the following are

collecting social security taxes from workers'

examples of government's role

paychecks.

as referee except: a. collecting social security taxes from workers' paychecks. b. setting minimum safety regulations for the workplace. c. prohibiting two competitors from meeting in order to fix prices of their products. d. setting limitations on when someone can be fired.

Households are on the:

supply side of factor markets and the demand side

a. supply side of factor markets

of goods markets.

and the demand side of goods markets. b. demand side of factor markets and the supply side of goods markets. c. supply side of both factor markets and goods markets. d. demand side of both factor markets and goods markets.

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Which of the following

Individuals with higher incomes ought to pay more

statements is a normative

in taxes than individuals with

economic statement?

lower incomes.

a. Free trade tends to decrease the price of imported goods. b. Socialism answers the three basic economic questions differently than capitalism. c. Individuals with higher incomes ought to pay more in taxes than individuals with lower incomes. d. Minimum wage laws do not adversely affect teenage employment levels.

Currently the firm pictured in

The opportunity cost of 2 additional cars is 20

Figure 1 is producing 6 cars and

pizzas.

80 pizzas. a. The firm cannot increase its car or pizza production unless it changes its technology or gets more resources. b. The opportunity cost of 20 additional pizzas is 2 cars. c. The opportunity cost of 2 additional cars is 20 pizzas. d. The firm does not have to sacrifice pizzas to make more cars because it is currently not producing efficiently.

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If officials impose a price

the price ceiling will discourage producers from

ceiling in a market, economists

producing as much of the

will point out that:

product than they would without the price ceiling.

A. society as a whole will benefit more (in terms of changes in comsumer and producer surplus) with the price ceiling than it would without the price ceiling. B. the price ceiling will encourage producers to produce more of the good than they would without the price ceiling. C. the price ceiling will discourage producers from producing as much of the product than they would without the price ceiling. D. consumers will want less of the good with the price ceiling than they would without the price ceiling.

If the (inverse) demand for

1,000 coffee grinders.

Cuisinart coffee bean grinders is (MB=) P=60 - 0.02×QD and the current market price is $40.00, the quantity demanded for Cuisinart coffee bean grinders is: A. 10,000 coffee grinders. B. 4,000 coffee grinders.

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scenario below best describes Figure 1?

an increase in income impacts the sales of normal

price of an important input in a

goods

ction process increases. ncrease in income impacts the sales of al goods technologydecreasesthecostofproduction. ecrease in the price of a good impacts the of a substitute good.

The (inverse) supply and

P = $4.00, Q = 400 thousand boxes.

demand equations for Little Debbie Oatmeal Cream cookies are given by (MC=) P= 1.0 + 0.0075×QS and (MB=) P= 7.0 - 0.0075×QD respectively, where price is in dollars per box and quantity is in thousands of boxes. The equilibrium market price and quantity is: A. P = $2.50, Q = 200 thousand boxes. B. P = $4.00, Q = 400 thousand boxes. C. P=$5.50,Q=200thousandboxes. D. P = $2.50, Q = 600 thousand boxes.

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When the price of yucca falls

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yucca and potatoes are substitutes.

by 10% sales of potatoes fall by 2%. We might reasonable conclude that: A. yucca and potatoes are substitutes. B. yucca and potatoes are complements C. yucca and potatoes are normal goods. D. yucca and potatoes are inferior goods.

As the manager of a golf

4%

resort, you want to increase the number of tee times sold by 6.0%. Your staff economist (and junior caddy) has determined that the price elasticity of demand for tee times is |-1.5|. To increase sales by the desired amount, you should decrease the price of a tee time by how much? A. 9%. B. 6%. C. 4%. D. 3%.

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An economist recently

MICROECONOMICS FINAL MULTIPLE CHOICE Flashcards | Quizlet

elastic

estimated that for every 10% increase in the price of a fast food restaurant meal 12.2% fewer fast food meals are sold. This indicates that the demand for fast food meals is: A. inelastic. B. elastic. C. unitelastic. D. perfectlyinelastic.

At the current market price of

a shortage exists and the price will rise overtime as

pomegranates the quantity

buyer scompetitively

demanded exceeds the

bid up the price.

quantity supplied. As a result, A. the price is above equilibrium. B. equilibrium will be reestablished as the demand curve shifts to the left. C.a shortage exists and the price will rise overtime as buyer scompetitively bid up the price. D. excess quantity supplied exists and the price will fall over time as sellers competitively bid down the price.

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Table 1 shows the demand

MICROECONOMICS FINAL MULTIPLE CHOICE Flashcards | Quizlet

14 lobsters

schedule of three people who make up the market for lobsters. If the market price for lobsters is $8.00, what is the market quantity demanded? A. 3.3 lobsters. B. 7 lobsters. C. 14 lobsters. D. 66 lobsters.

10. In the long run, the price

more elastic than in the short run.

elasticity of demand is generally: A. of equal elasticity in the short run. B. unrelated to the elasticity in the short run. C. less elastic than in the short run. D. more elastic than in the short run.

Refer to Table 1 below. What is

90 utils.

the marginal utility of the fourth slice of Aunt June's Pecan Pie? A. 690 utils. B. 175 utils. C. 90 utils. D. 70 utils.

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To rationally maximize the

purchase the goods with the highest marginal utility

happiness a person can derive

per dollar spent.

from allocating income among potential consumption choices the individual should: A. purchase the goods that cost the least. B. purchase the goods that offer the highest total utility. C. purchase the goods with the highest average utility per dollar spent. D. purchase the goods with the highest marginal utility per dollar spent.

Average revenue minus

Profit divided by output

average total cost equals: A. Profit. B. Marginal revenue. C. Profit divided by output. D. Average variable cost.

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Ling can hand-craft 50 toques

MICROECONOMICS FINAL MULTIPLE CHOICE Flashcards | Quizlet

$300

in a 40 hour week. He could have earned $20 an hour working for the Lumber Jack Toque Company. If each toque sells for $30 and the explicit total cost of producing toques is $400 per week, Ling's weekly economic profit equals: A. $400. B. $300. C. $0 D. - $400.

Short-run decisions are ____

constrained, unconstrained

while long-run decisions are _____. A. constrained, unconstrained B. unconstrained, constrained C. constrained, constrained D. unconstrained, unconstrained

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A firm has four possible ways it

MICROECONOMICS FINAL MULTIPLE CHOICE Flashcards | Quizlet

20 workers and 6 machines.

can produce 200 units of output per week: it can use 25 workers and 5 machines, 20 workers and 6 machines, 15 workers and 8 machines, or 16 workers and 9 machines. If each worker costs $10 per week and each machine is rented for $40 a week, the most economically efficient combination is: A. 25 workers and 5 machines. B. 20 workers and 6 machines. C. 15 workers and 8 machines. D. 16 workers and 9 machines.

A downward sloping long-run

a firm is experiencing economies of scale.

average total cost curve implies that: A. a firm is experiencing diseconomies of scale. B. a firm is experiencing diminishing marginal productivity. C. a firm is experiencing economies of scope. D. a firm is experiencing economies of scale.

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Refer to Table 2: If the market

MICROECONOMICS FINAL MULTIPLE CHOICE Flashcards | Quizlet

700, $1,897

price is currently $6.75 per unit and the profit maximizing firm is in a perfectly competitive market, the manager should produce ____ units of the good and will make a profit of ____. A. 400, $400 B. 500, $800 C. 600, $1,650 D. 700, $1,897

A person is currently

consume more of good y and less of good x.

consuming a bundle of goods (x and y) such that she has no money left over and MUx/Px < MUy/Py. To maximize her utility she should: A. consume more of good x and less of good y. B. consume more of good y and less of good x. C. consume more of both goods x and y. D. consume less of both goods x and y.

10. Refer to Table 3 below. If

$2.00

labor costs $12 per hour, what is the marginal cost of the 24th unit of output? A. $2.00 B. $1.00 C. $0.50

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Many firms are operating in a

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a monopolistically competitive market

market where there is easy entry and firms attempt to fill niches by offering differentiated products. This market is most likely: a. a monopoly. b. a competitive market. c. a monopolistically competitive market. d. an oligopolistic market.

Firms in an oligopolistic

can earn economic profits or losses in both the

market:

short-run and the long-run.

a. earn zero economic profits in both the short-run and the long-run. b. can earn economic profits or losses in both the short-run and the long-run. c. can earn either profits or losses in the short-run, but earn zero economic profits in the long-run. d. earn economic profits in the short-run but zero economic profits in the long-run.

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A monopolist faces a

MICROECONOMICS FINAL MULTIPLE CHOICE Flashcards | Quizlet

P = 810, Q = 95

downward sloping demand curve described by the (inverse) demand equation: P = 1,000 - 2QD and has and has a marginal cost function of: MC = 50 + 6QS. Determine the equilibrium monopoly price and quantity (remember that the marginal revenue curve of a linear demand curve is described by a straight line that is twice as steep as the demand curve. You might want to sketch this one.). a. P = 950, Q = 150 b. P = 100, Q = 450 c. P = 910, Q = 45 d. P = 810, Q = 95

If a monopolist has the ability

consumer surplus will fall, profits will rise, and

to price discriminate, generally:

output will increase.

a. consumer surplus will fall, profits will rise, and output will increase. b. consumer surplus will increase, profits will fall, and output will fall. c. consumer surplus will fall, profits will fall, and output will increase. d. consumer surplus will fall, profits will rise, and output will fall.

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If a judge is using the

MICROECONOMICS FINAL MULTIPLE CHOICE Flashcards | Quizlet

market structure

Herfindahl Index as the primary evidence when deciding if an industry in monopolistic we might reasonable conclude she is judging based on: a. market performance. b. market structure. c. nefarious business practices. d. strategic decision making.

If a monopolist increases sales

$4

from 600 to 640 by lowering its price from $20 to $19, marginal revenue is: a. $160. b. $16. c. $4. d. $-1.

According to Figure 1, if the

60, $70

firm is a monopolistically competitive firm it should produce roughly ___ units and charge a price of ___ to maximize profits. b. 120, $61 c. 90, $55 d. 60, $70 e. 60, $40

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Examine the prisoner's dilemma

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A: Confess, B: Confess

game depicted in Figure 2. Each prisoner is offered the choice of confessing to the crime of which they are jointly accused or not confessing. They are not allowed to consult with each other. Which of the following is a Nash equilibrium of the game? a. A: Not Confess, B: Not Confess b. A: Confess, B: Confess c. A: Not Confess, B: Confess d. A: Confess, B: Not...