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economics mcq

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Question;2. Please answer the following concisely;a) Is there a relationship between Marginal Cost (MC) and;Average Fixed Cost? Why or why not?;b) Where does the MC curve intersect the AVC curve? Where;does MC intersect the ATC curve?;c) How does a decrease in the price of fuel affect: Average;Total Cost, Average Variable Cost, and Marginal Cost?;3. From;society's point of view the economic function of profits and losses is to;A) promote;the equal distribution of real assets and wealth.;B) achieve;full employment and price level stability.;C) contribute;to a more equal distribution of income.;D) reallocate;resources from less desired to more desired uses.;Answer the next question(s) using the following data which;show all available techniques for producing 20 units of a particular commodity;4. Refer to;the above data. In view of the indicated resource prices, the economically most;efficient production technique(s) is (are) technique(s);A) #1. B) #2 and #4. C) #3. D) #1 and #3.;5. Refer to;the above data. Assuming that the firm is motivated by self-interest and that;the 20 units which can be produced with each technique can be sold for $3 per;unit, the firm will;A) realize an;economic profit of $10.;B) realize;an economic profit of $30.;C) not earn;any economic profit.;D) close down;rather than incur a loss by producing.;6. The;market system's answer to the fundamental question "Who will get the goods;and services?" is essentially;A) "Those;willing and able to pay for them." C) "Those who most need;them.;B) "Those;who physically produced them." D) "Those who get utility from;them.;7. An;increase in the price of a product will reduce the amount of it purchased;because;A) supply;curves are upsloping.;B) the;higher price means that real incomes have risen.;C) consumers;will substitute other products for the one whose price has risen.;D) consumers;substitute relatively high-priced for relatively low-priced products.;8. If two;goods are complements;A) they are;consumed independently.;B) an;increase in the price of one will increase the demand for the other.;C) a;decrease in the price of one will increase the demand for the other.;D) they are;necessarily inferior goods.;Use the following to answer questions 9-10;9. A;decrease in demand is depicted by a;A) move from;point x to point y. C) shift from D2 to D1.;B) shift;from D1 to D2. D) move from point y to point x.;10. A decrease;in quantity demanded (as distinct from a decrease in demand) is depicted by a;A) move from;point x to point y. C) shift from D2 to D1.;B) shift;from D1 to D2. D) move from point y to point x.;11. The term;quantity demanded;A) refers to;the entire series of prices and quantities that comprise the demand schedule.;B) refers to;a situation in which the income and substitution effects do not apply.;C) refers to;the amount of a product that will be purchased at some specific price.;D) means the;same thing as demand.;12. If;consumers are willing to pay a higher price than previously for each level of;output, we can say that that following has occurred;A) a decrease;in demand. C) a decrease in supply.;B) an;increase in demand. D) an increase in supply.;13. Refer to;the above diagram. A decrease in supply is depicted by a;A) move from;point x to point y. C) shift from S2 to S1.;B) shift;from S1 to S2. D) move from point y to point x.;14. Refer to;the above diagram. An increase in quantity supplied (as distinct from an;increase in supply) is depicted by a;A) move from;point y to point x. C) shift from S2 to S1.;B) shift;from S1 to S2. D) move from point x to point y.;Use the following to answer questions 15-18;15. Refer to;the above table. If demand is represented by columns (3) and (2) and supply is;represented by columns (3) and (5), equilibrium price and quantity will be;A) $10 and 60 units. B) $9 and 50 units. C) $8 and 60 units.;D) $7 and 50 units.;16. Refer to;the above table. If demand is represented by columns (3) and (1) and supply is;represented by columns (3) and (4), equilibrium price and quantity will be;A) $10 and 60 units. B) $9 and 60 units. C) $8 and 80 units.;D) $7 and 30 units.;17. Refer to;the above table. In relation to column (3), a change from column (5) to column;(4) would indicate a(n);A) increase in demand. B) decrease in demand. C) increase in;supply. D) decrease in supply.;18. Refer to;the above table. Suppose that demand is represented by columns (3) and (2) and;supply is represented by columns (3) and (5). If the price were artificially;set at $9, a;A) the market;would clear.;B) a surplus;of 20 units would occur.;C) a shortage;of 20 units would occur.;D) demand;would change from columns (3) and (2) to columns (3 and (1).;19. Other;things equal, an excise tax on a product will;A) increase;its supply. C) increase the quantity sold.;B) increase;its price. D) increase its demand.

 

Paper#57187 | Written in 18-Jul-2015

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