16371025
Description
Quiz by Bekzhan Borbekov, updated more than 1 year ago
|
Created by Bekzhan Borbekov
almost 6 years ago
|
|
Question 1
Question
Of all the costs shown below incurred by Superior Airways, which is an example of an implicit cost?
Answer
-
a. The salaries paid to the pilots.
-
b. The jet fuel bills.
-
c. The purchases of parts needed for maintenance of the aircraft.
-
d. The rent that could be earned on an aircraft that is owned and used by Superior.
Question 2
Question
Everything that needs to be given up whenever a choice is made is called:
Answer
-
a. an implicit cost.
-
b. an explicit cost.
-
c. an opportunity cost.
-
d. a sunk cost.
Question 3
Question
Accounting profit is generally ________ than economic profit, because accountants ________ implicit costs in their calculations.
Answer
-
a. greater, consider
-
b. greater, do not consider
-
c. smaller, consider
-
d. smaller, do not consider
Question 4
Question
The law of diminishing marginal product of labor occurs when:
Answer
-
a. The law of diminishing marginal product of labor occurs when:
-
b. every additional worker hired reduces the total costs of the firm.
-
c. every additional worker hired contributes a smaller increase in production than previously hired workers.
-
d. every additional worker hired contributes a smaller increase in total costs than previously hired workers.
Question 5
Question
Based on the table above, what is the marginal cost of the tenth unit?
Answer
-
a. $250
-
b. $200
-
c. $50
-
d. $300
Question 6
Question
Based on the table above, if the fixed cost is $500, what is the average total cost of the fifth unit?
Answer
-
a. $250
-
b. $140
-
c. $240
-
d. $100
Question 7
Question
Based on the table above, what is the average variable cost of the fourth unit?
Answer
-
a. $250
-
b. $125
-
c. $240
-
d. $100
Question 8
Question
Economies of scale occur when ________ as the quantity of output increases.
Answer
-
a. short-run average total cost falls
-
b. short-run average total cost rises
-
c. long-run average total cost falls
-
d. long-run average total cost rises
Question 9
Question
The cost of raw materials will fall under the category of:
Answer
-
a. fixed costs.
-
b. variable costs.
-
c. implicit costs.
-
d. average fixed costs.
Question 10
Question
The factory rent payments made by a firm fall under the category of:
Answer
-
a. fixed costs.
-
b. variable costs.
-
c. short-run costs.
-
d. average variable costs.
Question 11
Question
Which of the following is NOT a characteristic of monopolistic competition?
Answer
-
a. There are many sellers.
-
b. There are many buyers.
-
c. Everybody is perfectly informed.
-
d. The goods are identical across sellers.
Question 12
Question
The diagram depicting monopolistic competition in the short run:
Answer
-
a. is very similar to the short-run monopoly diagram.
-
b. is very similar to the short-run perfect competition diagram.
-
c. is very similar to the short-run oligopoly diagram.
-
d. is completely different from the diagrams of all the other types of markets.
Question 13
Question
If the average-total-cost curve of a firm in monopolistic competition happens to be above the demand curve, it means:
Answer
-
a. the firm will have to sell a lot in order to make a profit.
-
b. the firm will have to sell at a very high price in order to make a profit.
-
c. other firms are performing better in the market than the firm depicted in the diagram.
-
d. the firm will be incurring losses in the short run.
Question 14
Question
In the long run, firms in monopolistic competition will see their price:
Answer
-
a. become equal to their average variable cost.
-
b. become equal to their average total cost.
-
c. remain well above their average total cost.
-
d. become equal to their marginal cost.
Question 15
Question
If firms in monopolistic competition are enjoying positive economic profits, in the long run:
Answer
-
a. they will continue enjoying such profits, since new firms will be unable to enter the industry.
-
b. consumers will cease wanting to buy the good and will switch to cheaper alternatives.
-
c. this will attract new firms into the industry, causing prices to drop and profits to disappear.
-
d. the government will have to step in and regulate the price.
Question 16
Question
In long-run equilibrium, firms in monopolistic competition ________ than firms in perfect competition.
Answer
-
a. produce less
-
b. charge a lower price
-
c. have bigger profits
-
d. have lower costs
Question 17
Question
In long-run equilibrium in a monopolistically competitive market, the price will be equal to:
Answer
-
a. marginal cost.
-
b. marginal revenue.
-
c. average variable cost.
-
d. average total cost.
Question 18
Question
A major critique of advertising is that:
Answer
-
a. it provides information to consumers that they would be better off without.
-
b. it manipulates people's tastes and preferences.
-
c. it promotes excessive competition among firms in the industry.
-
d. it undermines the market price.
Question 19
Question
A major argument in favor of advertising is that:
Answer
-
a. it provides information to consumers that allows them to make better choices.
-
b. it helps people reaffirm their tastes and preferences.
-
c. it promotes competition among firms in the industry, leading to lower prices.
-
d. it will lower the market price.
Question 20
Question
According to the text, branding can be good for society because:
Answer
-
a. it allows people to show off the branded goods they use or wear.
-
b. it keeps generic goods from taking over the market.
-
c. it provides useful information to consumers about the quality of branded goods.
-
d. it helps firms enjoy higher prices and profits.
-
e. Superbowl commercials are the best.
Want to create your own Quizzes for free with GoConqr? Learn more.