question

assume the market for organic produce sold at farmer's markets is perfectly competitive. all else equal, as more famers choose to produce and sell organic produce at farmer;s markets, what is likely to happen to the equilibrium price of the produce and profits of the organic farmers in the long run a. the equilibrium price is likely to increase and profits are likely to remain unchanged b. the equilibium price is likely to remain unchanged and profits are likely to decrease c. the equilibrium price is likely to decrease and profits are likely to decrease d. increase increase

answer

c

question

which of the following is not a characteristic of a perfectly competitive market structure a. there are a very large number of firms that are small compared to the market b. all firms sell identical products c. there are no restriction to entry by new d. there are restricitons on exit firms

answer

d

question

a very large number of small sellers who sell identical products imply a. a multitude of vastly different selling prices b. a downward sloping demand for each sellers product c. the inability of one seller to influence price d. chaos in the market

answer

c

question

the price of a sellers product in a perfect competition is determined by a. the individual seller b. a few of the sellers c. market demand and market supply d. the individual demander

answer

c

question

both buyers and sellers are price takers in a perfectly competitive market because a. the price is determined by government intervention and dictated to buyers and sellers b. each buyer and seller knows it is illegal to conspire to affect price c. both buyers and sellers in a perfectly competitive market are concerned for the welfare of others d. each buyer and seller is too small relative to others to independently affect the market price

answer

d

question

if, for a perfectly competitive firm, a price exceeds the marginal cost of production, the firm should a. increase its output b. reduce its output c. keep output constant and enjoy the above normal profit d. lower the price

answer

a

question

refer to figure 6.2 if a form is producing 700 units a. it is making a profit b. it is making a loss c. it should cut back its output to maximize profit d. it should increase its output to maximize profit

answer

c

question

a perfectly competitive firm produces 3,000 units of a good at a total cost of 36,000. the price of each good is 10. calculate the firms short run profit or loss a. loss of 6,000 b. profit of 6,000 c. profit of 30,000 d. insufficient

answer

a

question

which of the following is involved in a competitive firm's short run decision a. deciding whether to build an additional factory or not b. choosing a rate of output using existing plant and equipment c. changing the scale d. deciding what price to change for its products

answer

b

question

if a perfectly competitive firm produces and sells more output, its __ will definitely increase a. total profit b. total revenue c. average total cost d. marginal revenue

answer

b

question

refer to figure 6.2 for a perfectly competitive firm. if the market price is $30: a. no entry or exit will occur b. the firm should produce 24 units c. the firm should produce 15 units d. economic profits will be greater than zero

answer

a

question

refer to figure 6.1 for a perfectly competitive firm. if the market price is 46 a. the firm should produce 19 units b. there will be economic losses c. there will be economic profits d. economic profits equal zero

answer

c

question

competition in a market results in a. economic losses in the long run b. the optimal mix of goods and serviced being produced c. guaranteed economic profit d. an undesirable allocation of recourceds

answer

b

question

suppose a perfectly competitive firm increases its output. in order to sell this additional output, the firm: a. should price it at the market price b. lower its price c. will not be able to sell additional output at any price d. should raise its price to sell the additional output

answer

a

question

if a seafood restaurant can raise the price of its friend shrimp without losing all of its customers, then the restaurant definitely a. has market power b. is experiencing economies of scale c. is using predatory pricing d. has a monopoly on fried shrimp

answer

a

question

knoxville utilities board (KUB) is responsible for electricity distribution in knoxville. which of the following statements is true

answer

d

question

refer to 7-1 to maximize profits, the firm will produce a.Q1 b.Q2 c.Q3 d.Q4

answer

b

question

refer to figure 7-1 the firms profit- maximizing price is a. P1 b. P2 c. P3 d. P4

answer

c

question

if the firms average total cost curve is ATC1, the firm will a. suffer a loss b. break even c. make a profit d. face competition

answer

c

question

in terms of overall domestic consumption, about how much petroleum did the US produce within its own borders in 2014 a. 15 b.30 c.75 d.90

answer

c

question

a merger between two large airlines, such as american and us airways a. would never be allowed b. would not be allowed by the FTC if the mereger reduced competition c. would be allowed d. would always be allowed

answer

b

question

which of the following might be used to protect a monopoly from competition a. horizontal demand curve b. marginal revenue c. a patent d. a price taker

answer

c

question

which of the following is not true for a monopoly a. the demand curve and market curve is the same b. no direct competitor c. charge higher prices d. it is a price taker

answer

d

question

since a monopoly has market power, a. its demand curve is upward b. its marginal revenue curve is below its demand curve c. it must hold price constant in order to sell d. its cost of production are minimal

answer

b

question

suppose a monopoly firm produces software and can sell 10 items per month at a price of 50 each. in order to increase sales by one item per month, the monopolist must lower the price of the software by $1 to $49. the marginal revenue of the 11th item is a. 1 b. 39 c. 49 d. 50

answer

b

question

which of the following is true for a monopolist a. it is a price taker b. the firm faces a flat demand curve c. it will earn zero economic profit in the long run d. profit is maximized where marginal cost equals marginal revenue

answer

d

question

a monopolist sets price at a point on the __, corresponding to the rate of output determined by the intersection of ___ a. demand; marginal revenue and marginal cost b. marginal revenue; marginal cost c. average cost; price and marginal d. demand; average cost and marginal cost

answer

a

question

if an increase in the size of a factory results in reductions in minimum average total costs, this is known as a. marginal cost pricing b. diminishing marginal returns c. rising average total cost d. economies of scale

answer

d

question

the main reason markets alone do not provide the optimal amount of a public good is a. people are not willing to pay for them b. the government is corrupt c. too many people avoid paying their taxes d. we do not have room in market for public goods

answer

a

question

market failure occurs when a. market prices signal producers to produce the optimal mix of output b. the economy produces at a point on the production possibilities curve c. producers supply the good that earn the greatest profit d. an imperfection in the market mechanism prevents an optimal outcome

answer

d

question

which of the following does not explain why the market sometimes fails to produce the optimal mix of output a. some producers have market power b. public goods can have free riders c. private goods cannot be consumed jointly d. there are externalities associated with production

answer

c

question

with a positive externality, social demand is equal to market a. private demand plus externalities b. private supply plus market demand c. private demand minus externalities d. private demand multiplied by externalities

answer

a

question

which of the following is not an example of market failure a. public goods b. government intervention c. market powerad. externalities

answer

b

question

a private good is a good that a. is financed by private dollars instead of taxes b. can be jointly consumed c. can be denied to those who do not pay for it d. consumers use privately in their homes

answer

c

question

if the economy relies entirely on markets to answer the WHAT question, it tends to ___ goods with external benefits and ___ goods with external costs a. overproduce; overproduce b. over; under c. under produce, overproduce d. under; under

answer

c

question

a public good is a good that a. can be jointly consumed b. can be consumed by just one person c. the government d. affects a third party

answer

a

question

to reduce climate changes damages caused by the burning fossil fuels a. it would be difficult to implement permit trading on a global scale

answer

a

question

the communal nature of a highway means that no one individual is motivated to pay for it because even those who do not pay will still benefit from using it. this is an example of a. free rider dilemma b. govt failire c. inequity

answer

a

question

the free rider problem arrises because a. private goods are not available b. most public goods involve illegal activity c. people refer private goods d. public goods can be jointly consumed

answer

d

question

the term externalities refers to a. the inequitable distribution of output b. all costs and benefits of a market activity borne by a third party c. the impact that imported goods have domestic markets d. free riders who benefit but do not pay

answer

b

question

whenever external benefits in consumption exist a. market demand will exceed social demand b. social demand will exceed market demand c. market demand and social will be equal d. market overstates the social benefits

answer

b

question

based on figure 9.2 a. there are external costs associated with cigarette smoking b. all the costs associated with smoking are paid by those who smoke c. cigarette smoking results in equity issues d. social costs and private costs for cig smoking are equal

answer

a

question

which of the following is characteristic of downturn in the business cycle a. higher unemployment rates b. higher prices c. growth in real output d. increased population

answer

a

question

nominal GDP is defined as the a. value of output in current dollars b. dollar value of services but not goods c. output produced within a given year d. value of output in constant prices

answer

a

question

all persons over age 16 who are either working for pay or actively seeking paid employment refers to a. structural employment b. labor force c. unemployment rate d. cpi

answer

b

question

in table 10.1 what is the unemployment rate in year 1 a. 50 percent b. 41.7 c. 16.7 d. 8.3

answer

c

question

after quitting one job, some people with marketable skills find that it takes several months to find a new job. this is an example of which type of unemployment a.structural b. frictional c. cylical d. seasonal

answer

b

question

the consumer price index is a. a measure of changes in relative prices of significant consumer goods b. a measure of changes in the price of all goods and services c. a measure of changes in the average price of consumer goods and services d. used to determine if the economy is functioning at full employment

answer

c

question

if the consumer price index CPI had a value of 128 in year z, this means that during the period a. all priceds increased by 28 b. all increased 1.28 c. prices of goods and servies incread by 28 d. prices of goods and services average 128

answer

c

question

refer to table 10-2 sweatshirts dental examinations coffee drinks coffee beans a.3,7090 units b. 7,250 c. 8,750 d. 9,750

answer

c

question

consider the following data for tyrovia, a country that produces only two products a. 1,140 b.880 c.690 d.560

answer

c

question

refer to table 10-4 milk bread a. 118 b. 116 c. 86 d. 85

answer

b

question

consider the following values of the consumer price index for 2010 and 2011. the inflation rate for 2011 was equal to a. 215 b. 21.5 c. 8.0 d. 3.9

answer

d

question

a good measure of standard of living is a. real GDP per capita b. nominal GDP per capita c. total real GDP d. total nominal GDP

answer

a

question

one reason our full employment foal is not zero percent is because a. frictional unemployment will always exist b. cyclical unemployment will always exist c. population growth makes such a goal impossible d. discouraged workers make such a goal impossible

answer

a

question

according to the wealth inequality video we watched/listened to in class, what is true about the top 1% a. they should be afraid of the bottom b. they hold 40% of wealth c. they were not born in the us d. they own 25% of stock market

answer

b

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