Quiz #2 [MCQ | Chapters 13,17,18]

Pregunta 1 de 60

1

Accounting profit is equal to total revenue minus

Selecciona una de las siguientes respuestas posibles:

implicit costs.
variable costs.
the sum of implicit and explicit costs.
explicit costs.
marginal costs.

Explicación

Pregunta 2 de 60

1

Economic profit is equal to total revenue minus

Selecciona una de las siguientes respuestas posibles:

variable costs.
implicit costs.
explicit costs.
marginal costs.

Explicación

Pregunta 3 de 60

1

Nicole owns a small pottery factory. She can make 1,000 pieces of pottery per year and sell them for €100 each. It costs Nicole €20,000 for the raw materials to produce the 1,000 pieces of pottery. She has invested €100,000 in her factory and equipment: €50,000 from her savings and €50,000 borrowed at 10 per cent. (Assume that she could have loaned her money out at 10 per cent, too.) Nicole can work at a competing pottery factory for €40,000 per year. The accounting profit at Nicole's pottery factory is

Selecciona una de las siguientes respuestas posibles:

€30,000.
€35,000.
€75,000.
€70,000.
€80,000

Explicación

Pregunta 4 de 60

1

Nicole owns a small pottery factory. She can make 1,000 pieces of pottery per year and sell them for €100 each. It costs Nicole €20,000 for the raw materials to produce the 1,000 pieces of pottery. She has invested €100,000 in her factory and equipment: €50,000 from her savings and €50,000 borrowed at 10 percent (assume that she could have loaned her money out at 10 percent, too). Nicole can work at a competing pottery factory for €40,000 per year. The economic profit at Nicole's pottery factory is

Selecciona una de las siguientes respuestas posibles:

€80,000.
€30,000.
€75,000.
€70,000.
€35,000.

Explicación

Pregunta 5 de 60

1

If there are implicit costs of production,

Selecciona una de las siguientes respuestas posibles:

accounting profit will exceed economic profit.
economic profit will always be zero.
economic profit will exceed accounting profit.
accounting profit will always be zero.
economic profit and accounting profit will be equal.

Explicación

Pregunta 6 de 60

1

If a production function exhibits diminishing marginal product, its slope

Selecciona una de las siguientes respuestas posibles:

is linear (a straight line).
becomes steeper as the quantity of the input increases.
could be any of these answers.
becomes flatter as the quantity of the input increases.

Explicación

Pregunta 7 de 60

1

If a production function exhibits diminishing marginal product, the slope of the corresponding total-cost curve

Selecciona una de las siguientes respuestas posibles:

is linear (a straight line).
could be any of these answers.
becomes steeper as the quantity of output increases.
becomes flatter as the quantity of output increases.

Explicación

Pregunta 8 de 60

1

The marginal product of labour as production moves from employing one worker to employing two workers is

Selecciona una de las siguientes respuestas posibles:

10
0
23
40
17

Explicación

Pregunta 9 de 60

1

The production process described above exhibits

Selecciona una de las siguientes respuestas posibles:

constant marginal product of labour.
diminishing marginal product of labour.
increasing returns to scale.
increasing marginal product of labour.
decreasing returns to scale.

Explicación

Pregunta 10 de 60

1

Which of the following is a variable cost in the short run?

Selecciona una de las siguientes respuestas posibles:

rent on the factory
wages paid to factory labour
interest payments on borrowed financial capital
payment on the lease for factory equipment
salaries paid to upper management

Explicación

Pregunta 11 de 60

1

The average fixed cost of producing four units is

Selecciona una de las siguientes respuestas posibles:

€2.50.
€26.
none of these answers.
€10.
€5.

Explicación

Pregunta 12 de 60

1

The average total cost of producing three units is

Selecciona una de las siguientes respuestas posibles:

€28.
€6.
€3.33.
€18.
€9.33.

Explicación

Pregunta 13 de 60

1

The marginal cost of changing production from three units to four units is

Selecciona una de las siguientes respuestas posibles:

€7.
€5
€8.
€9.
€6.

Explicación

Pregunta 14 de 60

1

The efficient scale of production is:

Selecciona una de las siguientes respuestas posibles:

two units.
three units.
one unit.
five units.
four units.

Explicación

Pregunta 15 de 60

1

When marginal costs are below average total costs,

Selecciona una de las siguientes respuestas posibles:

average fixed costs are rising.
average total costs are falling.
average total costs are rising.
average total costs are minimized.

Explicación

Pregunta 16 de 60

1

If marginal costs equal average total costs,

Selecciona una de las siguientes respuestas posibles:

average total costs are falling.
average total costs are rising.
average total costs are maximized.
average total costs are minimized.

Explicación

Pregunta 17 de 60

1

If, as the quantity produced increases, a production function first exhibits increasing marginal product and later diminishing marginal product, the corresponding marginal-cost curve will

Selecciona una de las siguientes respuestas posibles:

be flat (horizontal).
slope upward.
slope downward.
be U-shaped.

Explicación

Pregunta 18 de 60

1

In the long run, if a very small factory were to expand its scale of operations, it is likely that it would initially experience

Selecciona una de las siguientes respuestas posibles:

an increase in average total costs.
diseconomies of scale.
economies of scale.
constant returns to scale.

Explicación

Pregunta 19 de 60

1

The efficient scale of production is the quantity of output that minimizes

Selecciona una de las siguientes respuestas posibles:

average fixed cost.
average total cost.
average variable cost.
marginal cost.

Explicación

Pregunta 20 de 60

1

Which of the following statements is true?

Selecciona una de las siguientes respuestas posibles:

All costs are fixed in the short run.
All costs are variable in the long run.
All costs are variable in the short run.
All costs are fixed in the long run.

Explicación

Pregunta 21 de 60

1

The market for hand tools (such as hammers and screwdrivers) is dominated by Draper, Stanley, and Craftsman. This market is best described as

Selecciona una de las siguientes respuestas posibles:

monopolistically competitive.
a monopoly.
an oligopoly.
competitive.

Explicación

Pregunta 22 de 60

1

A market structure in which many firms sell products that are similar but not identical is known as

Selecciona una de las siguientes respuestas posibles:

monopolistic competition.
monopoly.
perfect competition.
oligopoly.

Explicación

Pregunta 23 de 60

1

If oligopolists engage in collusion and successfully form a cartel, the market outcome is

Selecciona una de las siguientes respuestas posibles:

the same as if it were served by competitive firms.
efficient because cooperation improves efficiency.
the same as if it were served by a monopoly.
known as a Nash equilibrium.

Explicación

Pregunta 24 de 60

1

Suppose an oligopolist individually maximizes its profits. When calculating profits, if the output effect exceeds the price effect on the marginal unit of production, then the oligopolist

Selecciona una de las siguientes respuestas posibles:

should produce more units.
has maximized profits.
is in a Nash equilibrium.
should produce fewer units.
should exit the industry.

Explicación

Pregunta 25 de 60

1

As the number of sellers in an oligopoly grows larger, an oligopolistic market looks more like

Selecciona una de las siguientes respuestas posibles:

monopoly.
a competitive market.
monopolistic competition.
a collusion solution.

Explicación

Pregunta 26 de 60

1

When an oligopolist individually chooses its level of production to maximize its profits, it produces an output that is

Selecciona una de las siguientes respuestas posibles:

more than the level produced by a monopoly and less than the level produced by a competitive market.
less than the level produced by a monopoly and more than the level produced by a competitive market.
less than the level produce by either monopoly or a competitive market.
more than the level produced by either monopoly or a competitive market.

Explicación

Pregunta 27 de 60

1

When an oligopolist individually chooses its level of production to maximize its profits, it charges a price that is

Selecciona una de las siguientes respuestas posibles:

more than the price charged by either monopoly or a competitive market.
less than the price charged by either monopoly or a competitive market.
more than the price charged by a monopoly and less than the price charged by a competitive market.
less than the price charged by a monopoly and more than the price charged by a competitive market.

Explicación

Pregunta 28 de 60

1

As the number of sellers in an oligopoly increases,

Selecciona una de las siguientes respuestas posibles:

output in the market tends to fall because each firm must cut back on production.
the price in the market moves further from marginal cost.
collusion is more likely to occur because a larger number of firms can place pressure on any firm that defects.
the price in the market moves closer to marginal cost.

Explicación

Pregunta 29 de 60

1

A situation in which oligopolists interacting with one another each choose their best strategy given the strategies that all the other oligopolists have chosen is known as a

Selecciona una de las siguientes respuestas posibles:

Nash equilibrium.
dominant strategy.
cartel.
collusion solution.

Explicación

Pregunta 30 de 60

1

Under competition, the price and quantity in this market would be

Selecciona una de las siguientes respuestas posibles:

$8; 800
$6; 1.200
$4; 1.600
$2; 2.000
$0; 2.400

Explicación

Pregunta 31 de 60

1

If the duopolists in this baseball market collude and successfully form a cartel, what is the price that each should charge in order to maximize profits?

Selecciona una de las siguientes respuestas posibles:

$8
$7
$6
$5
$4

Explicación

Pregunta 32 de 60

1

If the duopolists in this baseball market collude and successfully form a cartel, how much profit will each earn?

Selecciona una de las siguientes respuestas posibles:

$2.700
$3.200
$3.500
$3.600
$7.200

Explicación

Pregunta 33 de 60

1

If the duopolists are unable to collude, how much profit will each earn when the market reaches a Nash equilibrium?

Selecciona una de las siguientes respuestas posibles:

$2.700
$3.200
$3.500
$3.600
$7.200

Explicación

Pregunta 34 de 60

1

The dominant strategy for Sue and Joe is for

Selecciona una de las siguientes respuestas posibles:

both to be open for many hours
both to be open for a few hours
Sue to be open for many hours while Joe is open for few hours
Sue to be open for few hours while Joe is open for many hours
There is no dominant strategy in this prisoners' dilemma game

Explicación

Pregunta 35 de 60

1

Suppose Sue and Joe agreed to collude and jointly maximize their profits. If Sue and Joe were to be able to repeatedly play the game shown earlier and they agreed on a penalty for defecting from their agreement, what is the likely outcome of the game?

Selecciona una de las siguientes respuestas posibles:

Both are open for many hours
Both are open for a few hours
Sue is open for many hours while Joe is open for few hours
Sue is open for few hours while Joe is open for many hours

Explicación

Pregunta 36 de 60

1

Many economists argue that resale price maintenance

Selecciona una de las siguientes respuestas posibles:

is price fixing and therefore is prohibited by law
Enhance the market power of the producer
Has a legitimate purpose of stopping discount retailers from free riding on the services provided by full-service retailers
Both A and B

Explicación

Pregunta 37 de 60

1

Collusion is difficult for an oligopoly to maintain

Selecciona una de las siguientes respuestas posibles:

Because antitrust laws make collusion illegal
Because in the case of oligopoly, self-interest is in conflict with cooperation
If additional firms enter of the oligopoly
For all of the above reasons

Explicación

Pregunta 38 de 60

1

If ABC Publishing charges separate prices for both products, its best strategy is to charge prices that, when combined, total

Selecciona una de las siguientes respuestas posibles:

$60
$75
$80
$85
$90

Explicación

Pregunta 39 de 60

1

If ABC Publising engages in tying, its best strategy is to charge a combined price of:

Selecciona una de las siguientes respuestas posibles:

$60
$75
$80
$85
$90

Explicación

Pregunta 40 de 60

1

Laws that make it illegal for firms to conspire to raise prices of reduce production are known as

Selecciona una de las siguientes respuestas posibles:

Pro-competition laws
Antitrust laws
Antimonopoly laws
Anticollusion laws
All of the above

Explicación

Pregunta 41 de 60

1

The most important factors of production are

Selecciona una de las siguientes respuestas posibles:

labour, land, and capital.
water, earth, and knowledge.
money, stocks, and bonds.
management, finance, and marketing.

Explicación

Pregunta 42 de 60

1

If a factor exhibits diminishing marginal product, hiring additional units of the factor will

Selecciona una de las siguientes respuestas posibles:

cause a reduction in output.
have no effect on output.
increase the marginal product of the factor.
generate ever smaller amounts of output.

Explicación

Pregunta 43 de 60

1

What is the marginal product of labour as the firm moves from using three workers to using four workers?

Selecciona una de las siguientes respuestas posibles:

14
0
none of these answers
2
12

Explicación

Pregunta 44 de 60

1

If the price of output is €4 per unit, what is the value of the marginal product of labour as the firm moves from using four workers to using five workers?

Selecciona una de las siguientes respuestas posibles:

€60
€4
€12
€8
€56

Explicación

Pregunta 45 de 60

1

If this profit-maximizing firm sells its output in a competitive market for €3 per unit and hires labour in a competitive market for €8/hour, then this firm should hire

Selecciona una de las siguientes respuestas posibles:

four workers.
three workers.
two workers.
five workers.
one worker.

Explicación

Pregunta 46 de 60

1

The value of the marginal product of labour is

Selecciona una de las siguientes respuestas posibles:

the price of the output times the wage of labour.
the price of the output times the marginal product of labour.
none of these answers.
the wage of labour times the quantity of labour.
the wage of labour times the marginal product of labour.

Explicación

Pregunta 47 de 60

1

For a competitive, profit-maximizing firm, the value-of-the-marginal-product curve for capital is the firm's

Selecciona una de las siguientes respuestas posibles:

supply curve of capital.
demand curve for capital.
production function.
marginal cost curve.

Explicación

Pregunta 48 de 60

1

An increase in the supply of labour

Selecciona una de las siguientes respuestas posibles:

increases the value of the marginal product of labour and decreases the wage.
decreases the value of the marginal product of labour and decreases the wage.
decreases the value of the marginal product of labour and increases the wage.
increases the value of the marginal product of labour and increases the wage.

Explicación

Pregunta 49 de 60

1

A decrease in the demand for fish

Selecciona una de las siguientes respuestas posibles:

decreases the value of the marginal product of fishermen, reduces their wage, and reduces employment in the fishing industry.
increases the value of the marginal product of fishermen, increases their wage, and increases employment in the fishing industry.
decreases the value of the marginal product of fishermen, reduces their wage, and increases employment in the fishing industry.
increases the value of the marginal product of fishermen, increases their wage, and decreases employment in the fishing industry.

Explicación

Pregunta 50 de 60

1

What will a decrease in the supply of fishermen do to the market for capital employed in the fishing industry?

Selecciona una de las siguientes respuestas posibles:

increase the demand for fishing boats and decrease rental rates on fishing boats
decrease the demand for fishing boats and increase rental rates on fishing boats
decrease the demand for fishing boats and decrease rental rates on fishing boats
increase the demand for fishing boats and increase rental rates on fishing boats

Explicación

Pregunta 51 de 60

1

An increase in the demand for apples will cause all but which of the following?

Selecciona una de las siguientes respuestas posibles:

a decrease in the number of apple pickers employed
an increase in the value of the marginal product of apple pickers
an increase in the price of apples
an increase in the wage of apple pickers

Explicación

Pregunta 52 de 60

1

A decrease in the supply of farm tractors will cause all but which of the following?

Selecciona una de las siguientes respuestas posibles:

an increase in the rental rate for tractors
a decrease in the rental rate of farmland
an increase in the value of the marginal product of tractors
an increase in the wage of farm workers

Explicación

Pregunta 53 de 60

1

If both input and output markets are competitive and firms are profit maximizing, then in equilibrium each factor of production earns

Selecciona una de las siguientes respuestas posibles:

an amount equal to the price of output times total output.
the amount allocated by the political process.
an equal share of output.
the value of its marginal product.

Explicación

Pregunta 54 de 60

1

An individual firm's demand for a factor of production

Selecciona una de las siguientes respuestas posibles:

slopes downward because an increase in the production of output reduces the price at which the output can be sold in a competitive market, thereby reducing the value of the marginal product as more of the factor is used.
slopes downward due to the factor's diminishing marginal product.
slopes upward due to the factor's increasing marginal product.
is perfectly elastic (horizontal) if the factor market is perfectly competitive.

Explicación

Pregunta 55 de 60

1

An increase in the demand for a firm's output

Selecciona una de las siguientes respuestas posibles:

decreases the prosperity of the firm but increases the prosperity of the factors hired by the firm.
decreases the prosperity of both the firm and the factors hired by the firm.
increases the prosperity of both the firm and the factors hired by the firm.
increases the prosperity of the firm but decreases the prosperity of the factors hired by the firm.

Explicación

Pregunta 56 de 60

1

A competitive, profit-maximizing firm should hire workers up to the point where

Selecciona una de las siguientes respuestas posibles:

the wage, the rental price of capital, and the rental price of land are all equal.
the marginal product of labour equals zero and the production function is maximized.
the value of the marginal product of labour equals the wage.
the marginal product of labour equals the wage.

Explicación

Pregunta 57 de 60

1

Which of the following is not true with regard to workers who have a high value of marginal product?

Selecciona una de las siguientes respuestas posibles:

have skills that are in relatively scarce supply.
produce output for which there is great demand.
usually have little capital with which to work.
are usually highly paid.

Explicación

Pregunta 58 de 60

1

An increase in the price of automobiles shifts the demand for autoworkers to the

Selecciona una de las siguientes respuestas posibles:

left and decreases the wage.
right and decreases the wage.
right and increases the wage.
left and increases the wage.

Explicación

Pregunta 59 de 60

1

When capital is owned by the firm as opposed to being directly owned by households, capital income may take any of the following forms except

Selecciona una de las siguientes respuestas posibles:

interest.
dividends.
increases in stocks of goods.
retained earnings.

Explicación

Pregunta 60 de 60

1

Suppose that a war is fought with biological weapons. The weapons destroy people but not capital. What is likely to happen to equilibrium wages and rental rates after the war when compared to their values before the war?

Selecciona una de las siguientes respuestas posibles:

Wages rise and rental rates fall.
Wages rise and rental rates rise.
Wages fall and rental rates rise.
Wages fall and rental rates fall.

	Creado por Good Guy Beket hace más de 5 años

Hell on Earth (Quizzes #2 & #3 [Chapters 1-3, 4-6, 13-17-18, 23-24]) Economics [Teacher: Abdinova Makpal ; Final Exam + Quizzes] ▼ Test sobre Quiz #2 [MCQ | Chapters 13,17,18], creado por Good Guy Beket el 02/12/2018.

Quiz #2 [MCQ | Chapters 13,17,18]

Pregunta 1 de 60

Accounting profit is equal to total revenue minus

Selecciona una de las siguientes respuestas posibles:

Explicación

Pregunta 2 de 60

Economic profit is equal to total revenue minus

Selecciona una de las siguientes respuestas posibles:

Explicación

Pregunta 3 de 60

Selecciona una de las siguientes respuestas posibles:

Explicación

Pregunta 4 de 60

Selecciona una de las siguientes respuestas posibles:

Explicación

Pregunta 5 de 60

If there are implicit costs of production,

Selecciona una de las siguientes respuestas posibles:

Explicación

Pregunta 6 de 60

If a production function exhibits diminishing marginal product, its slope

Selecciona una de las siguientes respuestas posibles:

Explicación

Pregunta 7 de 60

If a production function exhibits diminishing marginal product, the slope of the corresponding total-cost curve

Selecciona una de las siguientes respuestas posibles:

Explicación

Pregunta 8 de 60

The marginal product of labour as production moves from employing one worker to employing two workers is

Selecciona una de las siguientes respuestas posibles:

Explicación

Pregunta 9 de 60

The production process described above exhibits

Selecciona una de las siguientes respuestas posibles:

Explicación

Pregunta 10 de 60

Which of the following is a variable cost in the short run?

Selecciona una de las siguientes respuestas posibles:

Explicación

Pregunta 11 de 60

The average fixed cost of producing four units is

Selecciona una de las siguientes respuestas posibles:

Explicación

Pregunta 12 de 60

The average total cost of producing three units is

Selecciona una de las siguientes respuestas posibles:

Explicación

Pregunta 13 de 60

The marginal cost of changing production from three units to four units is

Selecciona una de las siguientes respuestas posibles:

Explicación

Pregunta 14 de 60

The efficient scale of production is:

Selecciona una de las siguientes respuestas posibles:

Explicación

Pregunta 15 de 60

When marginal costs are below average total costs,

Selecciona una de las siguientes respuestas posibles:

Explicación

Pregunta 16 de 60

If marginal costs equal average total costs,

Selecciona una de las siguientes respuestas posibles:

Explicación

Pregunta 17 de 60

If, as the quantity produced increases, a production function first exhibits increasing marginal product and later diminishing marginal product, the corresponding marginal-cost curve will

Selecciona una de las siguientes respuestas posibles:

Explicación

Pregunta 18 de 60

In the long run, if a very small factory were to expand its scale of operations, it is likely that it would initially experience

Selecciona una de las siguientes respuestas posibles:

Explicación

Pregunta 19 de 60

The efficient scale of production is the quantity of output that minimizes

Selecciona una de las siguientes respuestas posibles:

Explicación

Pregunta 20 de 60

Which of the following statements is true?

Selecciona una de las siguientes respuestas posibles:

Explicación