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ECO Misc. Multiple Choice Questions

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Question;1. The slope of a curved line at a particular point is a. the slope of the straight line that is tangent to the curve at that point. b. the slope of the straight line from the origin to that particular point. c. always positive. d. always negative.2. Which of the following is likely to result in a shift in the demand curve for dresses? a. An increase in consumer incomes. b. A reduction in tariffs that allows dress manufacturers to import cotton cloth at cheaper prices than before. c. An increase in dress prices. d. The development of new machines that dramatically increase the productivity of dressmakers. e. A union concession to lower wages in order to maintain employment.3. The law of demand states that a. a higher price generally increases the snob appeal of a good and people will therefore buy more of for status. b. generally, a demand curve has a positive slope. c. demand is affected by many variables other than price, including advertising outlays, tastes of consumers, and the size of the sales force. d. a lower price generally raises the amount of a commodity people will want to buy, so demand curves slope negatively. e. consumer protection agencies have a great leeway in enforcing producer behavior.4. A market will experience a ______________ when he price is above equilibrium and a______________ when the price is below equilibrium.a. shortage, surplus.b. surplus, shortage.c. shortage, surplus.d. surplus, surplus.e. profit, loss.5. If oranges and grapefruit are close substitutes, an increase in the price of oranges will shift the demand curve ofa. both products to the right.b. both products to the left.c. grapefruit to the right.d. oranges to the left.e. oranges to the right.6. An effective price ceiling willa. result in a surplus.b. clear the market.c. induce entry into the industry.d. result in a shortage.e. result in a surplus or shortage depending on the state of the economy.7. Total utilitya. diminishes as the quantity held of a good increases.b. increases as long as more goods are acquired.c. increases only as long as marginal utility increases.d. increases as long as marginal utility is positive.e. continues to increase even when marginal utility is negative.8. An inferior good is onea. that is produced by American industries.b. whose quantity demanded falls when the purchasers? incomes rise.c. that is ordinarily purchased by college students from college town merchants.d. whose demand increases only with increases in income.e. for which the Engel Curve is positively sloped. 9. An indifference curve is a line showinga. combinations of goods that can be produced if all resources are fully employed.b. all combinations of two commodities that are equally desirable to the consumer.c. all combinations of goods over which the consumer has no choice.d. how decisions are made in a non-market economy.e. various combinations of price and quantity between which the consumer is indifferent.10. Which of the following statements is not true?a. Indifference curves have negative slopes.b. Indifference curves never intersect.c. Indifference curves closer to the origin represent greater well-being.d. The slope of indifference curves decreases as one moves from left to right.e. Indifference curves never cross an axis.44. By adhering to the MC=MR principle, a monopolist will guarantee himself a. either maximum profits or minimum losses. b. large profits. c. normal profits. d. no losses. e. maximum revenue.45. A general criticism of monopoly, as compared to a perfectly competitive firm, is that it a. restricts output and charges a higher price. b. restricts output and charges a competitive price. c. charges a higher price while maintaining a competitive output. d. charges a ?cutthroat? (i.e., below-cost) price and produces a surplus of output. e. neglects price and output in allocating its resources.46. The term ?production function? refers to the a. use of machines in production. b. relationship between inputs and outputs. c. purposes and functions of production. d. role of labor unions in manufacturing. e. effects of automation on productivity.47. In monopolistic competition, the demand curve facing a firm will become more elastic a. the greater the number of sellers. b. the fewer the number of sellers. c. the greater the degree of product differentiation. d. the greater the obstacles to entry. e. the greater the elasticity of its supply curve.48. A firm in monopolistic competition maximizes its profit by producing to where a. MC = ATC. b. MC = AR. c. MC = MR. d. AR = ATC. e. P = AR.49. A typical feature of oligopolies is a. the tendency toward destructive competition. b. a ? live and let live? attitude. c. frequent price reduction. d. a noticeable lack of nonprice competition. e. a socially optimum allocation of resources.50. A ?kinked? demand curve reflects a tendency on the part of competitors to a. follow price reductions rather than price increases. b. follow price increases but not price reductions. c. be unconcerned with rivals? behavior. d. allocate resources in a socially optimum manner. e. encourage price flexibility.

 

Paper#55947 | Written in 18-Jul-2015

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