Econ 3251 Exam 1

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Plastic and steel are substitutes in the production of body panels for certain automobiles. If the price of plastic increases, with other things remaining the same, we would expect

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Which of the following will not cause a shift in the supply of gasoline?

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A consumer prefers market basket A to market basket B, and prefers market basket B to market basket C. Therefore, A is preferred to C. the assumption that leads to this conclusion is

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The slope of an indifference curve reveals:

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Refer to the figure below. At any consumption bundle with the quantity of good X exceeding the quantity of good Y (that is, a bundle located below the 45 degree line, like point A) Alvin’s marginal rate of substitution of good X for good Y is

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Consider the following three market baskets. If baskets A and B are on the same indifference curve and if indifference curves exhibit diminishing MRS:

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If Jill’s MRS of popcorn for candy is 2, Jill would willingly give up:

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According to the law of diminishing returns

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What describes the graphical relationship between average product and marginal product?

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An examination of the production isoquants in the diagram below reveals that :

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The isoquant below is illustrating

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In a production process, all inputs are increased by 10%, but output increases less than 10%. This means that the firm experiences

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Refer to the figure. The situation pictured is one of..

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14. Constantine purchased 100 shares of IBM stock several years ago for $150 per share. The price of these shares has fallen to $55 per share. Constantine’s investment strategy is “buy low, sell high.” Therefore he will not sell his IBM stock until the price rises above $150 per share. If he sells at a price lower than 150 per share he will have “bought high and sold low.” Constantine’s decision:

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The difference between the economic and accounting costs of a firm are

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When marginal product is increasing, which of the following is true?

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Consider the following statements when answering this question.
I---Whenever a firim’s average variable costs are falling as output rises, marginal costs must be falling oo.
II----Whenever a firms average total costs are rising as output rises, average variable costs must be rising too.

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In the long run,

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Which of the following is always true along the isoquant curve?

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If a firms average cost decreases as the produce more outputs, the firm is experiencing

Econ 3251 Exam 1

Econ 3251 Exam 1

Plastic and steel are substitutes in the production of body panels for certain automobiles. If the price of plastic increases, with other things remaining the same, we would expect

Which of the following will not cause a shift in the supply of gasoline?

A consumer prefers market basket A to market basket B, and prefers market basket B to market basket C. Therefore, A is preferred to C. the assumption that leads to this conclusion is

The slope of an indifference curve reveals:

Refer to the figure below. At any consumption bundle with the quantity of good X exceeding the quantity of good Y (that is, a bundle located below the 45 degree line, like point A) Alvin’s marginal rate of substitution of good X for good Y is

Consider the following three market baskets. If baskets A and B are on the same indifference curve and if indifference curves exhibit diminishing MRS:

If Jill’s MRS of popcorn for candy is 2, Jill would willingly give up:

According to the law of diminishing returns

What describes the graphical relationship between average product and marginal product?

An examination of the production isoquants in the diagram below reveals that :

The isoquant below is illustrating

In a production process, all inputs are increased by 10%, but output increases less than 10%. This means that the firm experiences

Refer to the figure. The situation pictured is one of..

The difference between the economic and accounting costs of a firm are

When marginal product is increasing, which of the following is true?

Consider the following statements when answering this question. I---Whenever a firim’s average variable costs are falling as output rises, marginal costs must be falling oo. II----Whenever a firms average total costs are rising as output rises, average variable costs must be rising too.

In the long run,

Which of the following is always true along the isoquant curve?

If a firms average cost decreases as the produce more outputs, the firm is experiencing

Consider the following statements when answering this question.
I---Whenever a firim’s average variable costs are falling as output rises, marginal costs must be falling oo.
II----Whenever a firms average total costs are rising as output rises, average variable costs must be rising too.