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Question;Diminishing marginal utility implies that as an individual consumes more of a good, beyondsome point another unit will add:A) more units of utility than the preceding units.B) more pleasure than the preceding unit.C) the same pleasure as the preceding unit.D) less pleasure than the preceding unit.If Steve willingly consumes another slice of pizza, you can be sure that his marginal utilityis:A) rising.B) falling.C) positive.D) negative.As long as total utility is increasing, we know that marginal utility is:A) positive.B) decreasing.C) increasing.D) negative.Refer to the following table. If Jane's hourly wage rose from $2 an hour to $4 an hour andJane had 6 hours to work or play, Jane would:A) work 4 hours and play 2 hours when her wage is $2/hour but then work 3 hours and play 3 hourswhen her wage is $4 an hour.B) work 4 hours and play 2 hours when her wage is $2/hour but then work 6 hours when her wageis $4 an hour.C) not work at $2 an hour and not play at $6 an hour.D) not play at either wage.It is common for fashion trends to follow celebrity fashion choices. This is an example of:A) conspicuous consumption.B) focal point equilibrium.C) bounded rationality.D) inferring quality from price.The following table lists the utility that Sarah receives from consuming bananas at $0.25 aReview6.Review7.Review8.Review9.The following table lists the utility that Sarah receives from consuming bananas at $0.25 abanana. What is the marginal utility of consuming the fourth banana?A) 40B) 32C) 8D) 2Total utility refers to the:A) total satisfaction one gets from the consumption of a product.B) satisfaction one gets from the consumption of an additional unit of a product.C) maximum satisfaction one can get from the consumption of a good.D) satisfaction one gets from the consumption of an additional unit of a product times its price.Refer to the following table.If the price of one Weight Watchers frozen dinner is $2 and the price of one dozen jelly doughnuts is$1, which of the following would Kent, a utility-maximizing consumer, buy with his $6?A) 3 frozen dinnersB) 2 frozen dinners and 2 dozen jelly doughnutsC) 1 frozen dinner and 4 dozen jelly doughnutsD) 6 dozen jelly doughnutsRefer to the following table. Fill in the table and answer the following question.ReviewReview10.Review11.Review12.What is the total utility of five cans of soda?A) 6B) 8C) 50D) 44Suppose that a haircut will give Dawn 2,000 units of utility and cost her $40, whereas a setof acrylic nails costs $25 and yields 1,000 units of utility. Most likely Dawn should:A) choose the haircut because each unit of utility will cost her $0.2 compared with$0.2.5 for the nails.B) choose the nails because she will obtain 50 units of utility per dollar compared with 40 units ofutility per dollar for the haircut.C) be indifferent between the two choices.D) choose the haircut because she will receive 50 units of utility per dollar compared with 45 units ofutility per dollar for the nails.The following table lists the utility that Gwen receives from consuming bananas at $0.25apiece. What is the total utility of consuming four bananas?A) 46B) 30C) 8D) 2Review13.Review14.Review15.Refer to the graph shown. Between points B and D, marginal utility is:A) increasing, and so total utility is falling.B) positive, and so total utility is increasing.C) positive, and so total utility is falling.D) increasing, and so total utility is at its maximum.Refer to the following table. Fill in the table and answer the following question.What is the marginal utility of the fourth can of soda?A) 44 units of utilityB) 10 units of utilityC) 8 units of utilityD) 2 units of utilityConspicuous consumption refers to the consumption of goods and services:A) not for one's direct pleasure but simply to show off to others.B) not to show off to others but for one's direct pleasure.C) that do not provide any kind of satisfaction to the consumer.D) that generally provide more satisfaction to the consumer than any other kind of consumption.Refer to the following table.Review16.Review17.Review18.If the price of one Weight Watcher's frozen dinner is $2 and the price of one dozen jelly doughnuts is$3, which of the following would Kent, a utility maximizing consumer, buy with his $6?A) Three frozen dinners.B) Two frozen dinners.C) One frozen dinner and one dozen jelly doughnuts.D) Two dozen jelly doughnuts.A Big Mac meal costs $3.00 and gives you an additional 5 units of utility, a meal at theFour Seasons Hotel costs $27.00 and gives you an additional 45 units of utility. Based onlyon the information you have, using the theory of rational choice, you most likely would:A) choose to eat the Big Mac meal.B) choose to eat at the Four Seasons Hotel.C) be indifferent between eating the Big Mac and eating at the Four Seasons Hotel.D) decide that eating at the Four Season's Hotel is preferable because though the marginal utilitiesof both meals are the same, the total utility is greater in the case of the meal at the Four SeasonsHotel.Refer to the graph shown. Total utility is at its maximum at point:A) A.B) B.C) C.D) D.Faced with a hundred pounds of strawberries, the rational individual will eat:A) all of the strawberries.B) strawberries until the satisfaction from the last strawberry is maximized.C) strawberries until the satisfaction from eating strawberries is maximized.D) strawberries until the satisfaction from eating the last strawberry begins to fall.Review19.Review20.Review21.Review22.The following graph shows average fixed costs, average variable costs, averagetotal costs, and marginal costs of production.Refer to the graph shown. The distance EF represents:A) average variable cost.B) average total cost.C) average fixed cost.D) marginal cost.Total revenue minus explicit measurable costs equals:A) economic profit.B) normal profit.C) accounting profit.D) average profit.The long run is a period during which:A) no inputs can be varied and all inputs are fixed.B) some inputs can be varied and some inputs are fixed.C) some inputs can be varied and no inputs are fixed.D) all inputs can be varied and no inputs are fixed.A production table can be used to determine:A) a firm's profits.B) a firm's costs.C) how much output is produced from a given quantity of inputs.Review23.Review24.Review25.D) how much of a product will be demanded by consumers.Refer to the table shown. If the average product is 8, the number of workers is:A) 2.B) 4.C) 6.D) 8.When labor is the variable input, the average product equals the:A) marginal product divided by the number of workers.B) marginal product multiplied by the number of workers.C) number of workers divided by the quantity of output.D) quantity of output divided by the number of workers.Refer to the table shown. The average product when eight workers are employed is:A) 3.Review26.Review27.Review28.B) 4.C) 5.D) 6.A regional airline owns 10 aircraft and employs 20 pilots. The airline makes anaverage of three trips per day with each of its 10 aircraft. The aircraft and theirground crews are idle part of the day. Minimum rest requirements for its pilots meanthat if the airline wants to increase its flights, it must hire more pilots. The decisionto hire more pilots is:A) a short-run decision because the number of aircraft is held constant while the labor input ischanged.B) a short-run decision because the number of pilots is being increased, if the number ofground crew were decreased instead, it would be a long-run decision.C) a long-run decision because hiring pilots will increase revenues over a long period of timefor the airline.D) a long-run decision because customers will become accustomed to the new flight schedule.Refer to the following graph.This set of cost curves is:A) correct.B) wrong because the average variable and average total cost curves are switched.C) wrong because the marginal cost curve should go through the minimum points of the AVCand ATC curves.D) wrong because the marginal cost curve does not intersect the average total cost curve.When output is 20, fixed costs are $100 and variable costs are $400. When outputrises to 21, fixed costs are $100 and variable costs are $450. This implies that themarginal cost of the last unit of output equals:A) $25.B) $50.C) $500.D) $550.The following graph shows average fixed costs, average variable costs, average total costs, andReview29.Review30.marginal costs of production.Refer to the graph shown. Average variable cost is minimized when output equals:A) 12 units.B) 6 units.C) 21 units.D) 25 units.Mr. Woodard's cabinet shop is experiencing rapid growth in sales. As sales haveincreased, Mr. Woodard has found it necessary to hire more workers. However, hehas observed that doubling the number of workers has less than doubled his output.What is the likely explanation?A) The law of diminishing marginal utilityB) The law of diminishing marginal productivityC) The law of supplyD) The law of demandReview31.Review32.Review33.Refer to the table shown. A firm would be most likely to hire between:A) 1 and 3 workers.B) 3 and 4 workers.C) 5 and 8 workers.D) 8 and 10 workers.Refer to the table shown. Diminishing marginal productivity begins when the:A) third worker is hired.B) fourth worker is hired.C) fifth worker is hired.D) sixth worker is hired.A business produces 400 items and sells them for $15 each for a total of $6,000.The total cost of producing the items is $4,500 in explicit cost and $1,000 in implicitcost. Economic profit is:Review34.Review35.Review36.Review37.A) $0.B) $500.C) $1,000.D) $1,500.The marginal cost curve is a mirror image of the:A) total product curve.B) marginal product curve.C) average product curve.D) average variable cost curve.Can accounting profit be positive while economic profits are negative?A) No. The two concepts are identical.B) Yes, if total revenue covers opportunity costs but not explicit costs.C) Yes, if total revenue covers explicit costs but not opportunity costs.D) No. Economic profits must always be larger than accounting profits.Refer to the table shown. If seven workers are employed, total output equals:A) 5.B) 35.C) 53.D) 56.When output is 50, fixed costs are $1,000, and variable costs are $2,000, what is theaverage total cost?A) $20B) $40C) $60D) $80The only variable input used in producing bicycles in a small factory is labor. Currently fourworkers are employed, each works 40 hours per week and is paid $10 per hour. If fixed cost isReview38.Review39.Review40.Review41.Review42.$2,000 per week and total output is 10 bicycles per week, average cost is:A) $160.B) $260.C) $200.D) $360.Refer to the following graph.This set of cost curves is:A) correct.B) wrong because the average total cost and marginal cost curves are switched.C) wrong because the average total cost and average variable cost curves are reversed.D) wrong because the average fixed cost curve is shown to be below the average variablecost.If fixed costs equal $120, variable costs equal $800, and output is 10, averagevariable cost equals:A) $40.B) $80.C) $92.D) $120.If a firm shuts down for a week, during that week:A) total cost is zero.B) total cost equals total fixed cost.C) total cost equals total variable cost.D) total variable cost exceeds total fixed cost.The relationship between the quantity of inputs and the quantity of output is calledthe:A) production function.B) average product.C) marginal product.D) law of diminishing returns.Review43.Review44.Review45.The forgone income that the owner of a business could have made by spending timeworking in another job is called:A) explicit cost.B) marginal cost.C) total cost.D) opportunity cost.The following graph shows average fixed costs, average variable costs, averagetotal costs, and marginal costs of production.Refer to the graph shown. The average total cost curve is represented by which curve?A) IB) IIC) IIID) IVRefer to the table shown. The firm would definitely not hire:A) 5 workers. Save and Continue Later Go To QuestionB) 7 workers.C) 9 workers.D) 10 workers.Review46.Review47.Review48.A firm finds that producing 30,000 vases costs $180,000 and producing 40,000 vasescosts $200,000. This pattern might be explained by:A) economies of scope.B) economies of scale.C) diseconomies of scale.D) diminishing marginal productivity.Refer to the graph shown. If the seller expects a price of $48:A) it is not economically feasible to produce any level of output.B) any level of output is profitable.C) the minimum level of profitable production is 18.D) the minimum level of profitable production is 21.Diseconomies of scale are associated with:A) decreasing per-unit costs.B) improved team spirit.C) the short run.D) monitoring costs.The long-run average cost of producing 19 units of output is $56, and the long-run average costof producing 20 units is also $56. These numbers imply that:Review49.Review50.Review51.Review52.A) decreasing marginal productivity is present.B) constant returns to scale are present.C) economies of scale are present.D) diseconomies of scale are present.Which of the following statements is true?A) Many different production processes can be economically efficient, but only themethod that involves the lowest possible cost is technically efficient.B) Many different production processes can be technically efficient, but only themethod that involves the lowest possible cost is economically efficient.C) There is only one production process that is technically efficient, and this process is alsoeconomically efficient.D) There are many production processes that are both technically and economically efficient,but only one of these involves the lowest possible cost.According to the text, globalization has led to greater U.S. specialization in:A) marketing.B) manufacturing.C) farming.D) manual labor.Refer to the graph shown. If the firm wants to produce 900 units of output, it should use theplant size represented by:A) SATC1.Review53.Review54.Review55.Review56.Review57.Review58.B) SATC2.C) SATC3.D) SATC4.Economies of scale occur when a firm's long-run average total cost curve is:A) upward-sloping.B) vertical.C) downward-sloping.D) horizontal.The merger between two general merchandise stores, Sears and Kmart, each ofwhich carried some specialty items, most likely produced:A) neither economies of scope nor economies of scale.B) both economies of scope and economies of scale.C) economies of scope but not economies of scale.D) economies of scale but not economies of scope.In the 1990s the number of hogs slaughtered rose to record levels. The increase inproduction was the result of the rise of megaproducers that operated at a loweraverage cost than smaller producers. What economic concept does this describe?A) Economies of scope.B) Economies of scale.C) Indivisible setup costsD) Minimum efficient production.If the average total cost of supplying a good exceeds the price at which the good canbe sold, then entrepreneurs have:A) an incentive to supply the good.B) no incentive to supply the good.C) an incentive to supply only a small amount of the good.D) an incentive to raise the average total cost of producing the good.The level of production that minimizes long-run average total costs is referred to asthe:A) technically efficient level of production.B) economically efficient level of production.C) minimum efficient level of production.D) minimum profitable level of production.Review59.Review60.< PreviousSubmit Save and Continue Later Go To QuestionRefer to the graph shown. The output range in region c is associated with:A) diminishing marginal productivity.B) constant returns to scale.C) economies of scale.D) diseconomies of scale.A firm can use 50 workers and 10 machines, 70 workers and 9 machines, or 75workers and 9 machines to produce 40 chairs. If each worker costs $20 and eachmachine is rented for $500, the economically efficient input combination is:A) 50 workers and 10 machines.B) 70 workers and 9 machines.C) 75 workers and 9 machines.D) none of these input combinations.Positive expected profits:A) discourage people from supplying goods.B) encourage people to supply goods.C) have no effect on supply decisions.D) increase product demand.

 

Paper#55843 | Written in 18-Jul-2015

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