1076283
Description
Quiz by fitzsik194, updated more than 1 year ago
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Created by fitzsik194
over 10 years ago
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Question 1
Question
At the birthday party of your best friend, you see Skylar help himself to a second piece of cake. For this individual, it must be the case that
Answer
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At the birthday party of your best friend, you see Skylar help himself to a second piece of cake. For this individual, it must be the case that
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the marginal benefit of the second piece of cake is less than the marginal cost
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the total benefit received from eating cake is falling
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the marginal benefit of the second piece of cake is greater than the marginal cost
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Skylar is irrationally consuming too much cake
Question 2
Question
Nancy has the choice to spend one hour studying for an exam, mowing the lawn for one hour at a wage of $6, or babysitting her niece for one hour at a wage of $8. If we know that Nancy has chosen to study for the exam, which of the following is true?
Answer
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The benefit received from studying is greater than the opportunity cost of $8
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The opportunity cost of studying is $14, which is less than the benefit received from studying
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Nancy is indifferent between studying and mowing the lawn
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Nancy's behavior is irrational since babysitting was clearly superior to all other options
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Nancy is indifferent between babysitting and mowing the lawn
Question 3
Question
Assuming no government involvement in this market, if the current price were at the level of 0A, we would expect
Answer
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a surplus in the market to be eliminated by rising prices
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a shortage in the market to be eliminated by falling prices
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a surplus in the market to be eliminated by falling prices
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a shortage in the market to be eliminated by rising prices
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a decrease in quantity supplied and an increase in quantity demanded s the price rises
Question 4
Question
If the market is initially in equilibrium, which of the following would create a new equilibrium at point H?
Answer
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A decrease in consumer income if this good is normal
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An increase in the price of a substitute for this good
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A decrease in the cost of a production input for this good
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An increase in the number of consumers of this good
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An increase in consumer income if this good is normal
Question 5
Question
Using the diagram, which of the following might have caused the outward movement of the production possibility frontier?
Answer
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A decrease in the availability of fertile farmland
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A plague of destructive grasshoppers
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An increase in the productivity of the labor force
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A severe and long-lasting drought
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A decline in the rate of technological improvements
Question 6
Question
If Matt's total utility from consuming bratwurst increased at a constant rate, no matter how many bratwurst Matt consumed, what would Matt's demand curve for bratwurst look like?
Answer
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Vertical
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Horizontal
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Downward sloping
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Upward sloping
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first upward, but eventually downward sloping
Question 7
Question
Which is true of monopolistic competition?
Answer
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Firms earn long-run
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Firms spend money to differentiate and advertise their products
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P= MR = MC = ATC
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In the long run the market is allocatively efficient
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Excess capacity is eliminated in the long run
Question 8
Question
Dead weight loss is equal to which of the following areas?
Answer
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abcd
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cdfg
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0abQ1
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Q1Q2gh
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bdgh
Question 9
Question
Which of the following is an example of a longrun adjustment for the owners of a small café?
Answer
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The owners switch from whole wheat to sourdough bread
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The owners hire several part-time workers to cover the dinner shifts
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The owners work overtime on a busy weekend
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The owners install more energy-efficient light bulbs in all of the light fixtures
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The owners buy the office next door and this doubles the customer seating
Question 10
Question
Which of the following is true in the long run in perfect competition?
Answer
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P=MR=MC=ATC
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P=MR=MC>ATC
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P>MR=MC=ATC
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P=MR>MC=ATC
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P>MR=MC>ATC
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