Details of this Paper

Economics 15 MCQs Assignment

Description

solution


Question

Question;Question 1If demand for a product falls at the same time supply rises, which of the following mightwe expect?a. Both the equilibrium price and the equilibrium quantity could rise or fallb. Equilibrium price would fall, and equilibrium quantity could either rise or fallc. Equilibrium price would rise, and the equilibrium quantity could rise or falld. Equilibrium price and quantity sold would fallQuestion 2If the market for a certain product experiences an increase in supply and a decrease indemand, which of the following results is expected to occur?a. Equilibrium price would rise, and the equilibrium quantity could rise or fallb. Both equilibrium price and the equilibrium quantity could rise or fallc. Equilibrium price would fall, and the equilibrium quantity could rise or falld. Equilibrium price would fall, and the equilibrium quantity would fallQuestion 3How does an increase in income affect the market of bus rides (inferior good)?a. The demand curve for bus rides to shift to the leftb. The supply curve for bus rides to shift to the rightc. The demand curve for bus rides to shift to the rightd. The supply curve for bus rides to shift to the leftQuestion 4How does an increase in income affect the market of ipads (normal good)?a. The supply curve for ipads to shift to the leftb. The supply curve for ipads to shift to the rightc. The demand curve for ipads to shift to the leftd. The demand curve for ipads to shift to the rightQuestion 5Movie theatres decided to increase the price of movie tickets. Holding other factorsconstant, what happens to the demand for popcorn in the movie theatres?a. Demand for popcorn shifts to the left because popcorn and movies are substitute goodsb. Demand for popcorn shifts to the right because popcorn and movies arecomplementary goodsc. Demand for popcorn shifts to the right because popcorn and movies are substitutegoodsd. Demand for popcorn shifts to the left because popcorn and movies are complementarygoodsQuestion 6In a competitive industry buffeted by demand supply shocks, prices increase anddecrease, but economic profits tend to revert to zero. Hence, profits are exhibiting:a. Mean reversionb. Positive earningsc. None of the aboved. Above-average returnQuestion 7In the long-run, which of the following outcomes is most likely for a firm?a. Positive accounting profits and positive economic profitsb. Zero economic profits but positive accounting profitsc. Zero accounting profits but positive economic profitsd. Zero accounting profitsQuestion 8A perfectly competitive firms profit maximizing price is $15. At MC=MR, the output is100 units. At this level of production, average total costs are $12.The firms profits are:a. $500 in the short-run and long-runb. $300 in short-runc. $500 in the short-rund. $300 in the short run and long runQuestion 9If a firm in a perfectly competitive industry is experiencing average revenues greater thanaverage costs, in the long-run:a. Some firms will enter the industry and price will fallb. Some firms will enter the industry and price will risec. Some firms will leave the industry and price will rised. Some firms will leave the industry and price will fallQuestion 10Profits of a monopoly are driven to zero:a. In the long-run as all assets are mobile in the long-runb. Immediately in the short-run as assets move from low-valued uses to high-valued usesinstantlyc. In the long run because the demand curve becomes more inelasticd. In the short run because the demand curve becomes more elasticQuestion 11Industries with high barriers to entry:a. help firms sustain profitsb. increases the likelihood of firms entering the industryc. pushes profits to normal returnsd. increases the number of competitorsQuestion 12For a firm to reduce competitive intensity, it should:a. Lobby to the governmentb. Enact barrier to entryc. Acquire patentsd. All the aboveQuestion 13All of the following are example of entry barriers, except:a. Lower costs driven by economies of scaleb. Strong brandsc. Low capital requirements for entryd. Government protection through patents or licensing requirementsQuestion 14Attractive industries have all the following, except:a. Low buyer powerb. Low rivalryc. High supplier powerd. High entry barriersQuestion 15Cost-reduction generate:a. Increases in product differentiationb. Increases in long-run profitabilityc. Reduction in competitive intensityd. Increases in long-run profitability only if the cost reduction is difficult to imitate

 

Paper#56152 | Written in 18-Jul-2015

Price : $22
SiteLock