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economics homework




Question;1. The main advantage to a corporation is?;A) ease of entry;B) limited liability for the owners;C) dividends all go to one person;D) owners share managerial duty;E) all of the above;2. The main advantage to a sole;proprietorship is?;A) ease of entry;B) financial capital is easy to obtain;C) owners need little expertise in the day;to day business;D) limited liability for the owner;E) all of the above;3. The main disadvantage to a sole;proprietorship is?;A) profits must be shared;B) difficult and expensive to open;C) unlimited liability;D) single taxation;E) all of the above;4. The owners of a corporation are called;A) Corporate officers;B) The board of directors;C) Stockholders;D) Corporate executives;5. Profit is defined as;A) net revenue minus depreciation.;B) average revenue minus average total;cost.;C) marginal revenue minus marginal cost.;D) total revenue minus total cost.;6. Which of the following is most likely to;be a fixed cost?;A) materials;B) wages;C) rent;D) utilities;E) all of the above;7. A variable cost?;A) increases as production increases.;B) is a constant cost of production.;C) is always changing no matter the;circumstance.;D) is a cost like manager?s salaries, rent;etc.;E) none of the above;8. Opportunity costs are comprised of;A) explicit costs.;B) implicit costs.;C) forgone income.;D) all of the above.;9. An example of an explicit cost of;production would be;A) the cost of forgone labor earnings for;an entrepreneur.;B) the cost of flour for a baker.;C) the lost opportunity to invest in other;capital markets when the money is invested in one?s business.;D) none of the above.;10. If marginal cost is rising;A) marginal product must be rising.;B) marginal product must be falling.;C) average variable cost must be falling.;D) average fixed cost must be rising.;11. Economies of scale occur when;A) long-run average total costs rise as;output increases.;B) average fixed costs are falling.;C) long-run average total costs fall as;output increases.;D) average fixed costs are constant.;12. For a firm in a perfectly competitive;market the price of the good is always equal to;A) marginal revenue.;B) average revenue.;C) equilibrium market price.;D) all of the above.;13. Which of the following is not a;characteristic of a perfectly competitive market?;A) Firms are price takers.;B) There are many sellers in the market.;C) Goods offered for sale are largely the;same.;D) Firms have difficulty entering the;market.;14. When firms are said to be price takers;it implies that if a firm raises its price;A) buyers will go elsewhere.;B) buyers will pay the higher price in the;short run.;C) competitors will also raise their;prices.;D) firms in the industry will exercise;market power.;15. Characteristics of a Monopoly include;(i) sole seller of its product.;(ii) product does not have close;substitutes.;(iii) generates large economic profits.;(iv) they must sell at a certain price.;A) (i), (iii), and (iv);B) both (i) and (iii);C) both (i) and (ii);D) all of the above;16. A fundamental source of monopoly market;power arises from;A) barriers to entry.;B) perfectly elastic demand.;C) perfectly inelastic demand.;D) availability of "free" natural;resources, such as water or air.;17. Monopolistically competitive firms are;typically characterized by;A) many firms selling identical products.;B) a few firms selling similar or identical;products.;C) a few firms selling highly different;products.;D) many firms selling similar, but not;identical products.;18. In markets characterized by oligopoly;A) collusive agreements will always;prevail.;B) collective profits are lower under;cartel arrangements.;C) pursuit of self-interest by profit;maximizing firms always maximizes collective profits in the market.;D) there is tension between cooperation and;self-interest.;19. If identical products are sold by firms;participating in a market, the market is;(i) perfectly competitive.;(ii) an oligopoly.;(iii) monopolistically competitive.;A) (i) or (ii);B) (ii) or (iii);C) (i) or (iii);D) (i) only;20. The Sherman Antitrust Act;A) enhanced the ability to enforce cartel;agreements.;B) restricted the ability of competitors to;engage in cooperative agreements.;C) was passed to encourage judicial;leniency in the review of cooperative agreements.;D) was concerned with self-interest dominated;Nash equilibriums in prisoners' dilemma games.;21. One way in which monopolistic;competition differs from oligopoly is;A) there are no barriers to entry in;oligopolies.;B) all oligopoly firms eventually earn zero;economic profits.;C) strategic interactions between firms are;rarely evident in oligopolies.;D) in oligopoly markets there are only a;few sellers.;22. Because of product differentiation, a;firm in a monopolistically competitive market;A) always has some market power.;B) is very similar to a perfectly;competitive firm.;C) does not face the elastic portion of its;demand curve.;D) is unaffected by the elasticity of;demand.;23. A company should produce at a level;A) that maximizes profit.;B) where marginal revenue is greater then;marginal cost;C) where marginal revenue is equal to;marginal cost;D) both A and B;E) both A and C;24. In markets with perfect competition;A) information is closely guarded and;difficult to obtain.;B) producers sell highly differentiated;products.;C) businesses must compete by keeping their;costs down.;D) new businesses find it very difficult to;enter the market.;E) none of the above;25. An externality exists when;A) the government intercedes in the;operation of private markets by forcing the market to adjust to the balance of;supply and demand.;B) markets are not able to reach;equilibrium.;C) a firm sells its product in a foreign;market.;D) a person engages in an activity that;influences the well-being of a bystander and yet neither pays nor receives;payment for that effect.;26. Negative externalities occur when one;person's actions;A) cause another person to lose money in a;stock market transaction.;B) cause his or her employer to lose;business.;C) reveal his or her preference for;foreign-produced goods.;D) adversely affect the well-being of a;bystander (or bystanders) who is (are) not party to a market exchange.;27. Private goods are;A) excludable and nonrival.;B) nonexcludable and rival.;C) excludable and rival.;D) nonexcludable and nonrival.;28. Goods that are nonexcludable and;nonrival are;A) public goods.;B) private goods.;C) natural monopolies.;D) common resources.;29. The purpose of the government producing;a public good is?;A) to keep some companies from producing;certain goods;B) to make it more efficient to produce;C) to provide goods and services that may;not be produced due to market failure;D) to share the costs of production;E) all of the above;30. A business is producing paper in a;small community. An example of negative externalities in this scenario would be;?;A) added benefits to the production of;paper created by the business;B) added costs to the production of paper;paid for by the business;C) of little effect on the communities;located around the paper mill;D) costs incurred by those with no involvement;with the production of the paper;E) all of the above;31. Education makes Chris a better worker;voter, parent, and citizen. Since the benefits from education go beyond those;that Chris enjoys himself, education provides;A) Increasing marginal utility;B) Externalities that should be taxed;C) Decreasing marginal utility and should;be taxed;D) Externalities that should be subsidized;E) None of the above;32. If the demand for labor rises and the;supply of labor remains the same, wages will;A) rise;B) fall;C) remain the same;D) more information needed to determine an;answer;E) be adjusted by union officials;33. If the minimum wage is set higher than;the equilibrium wage;A) fewer people will be available to work;B) fewer jobs will be available than at the;equilibrium wage;C) more benefits will be offered to workers;D) more jobs will be available than at the;equilibrium wage;E) all of the above;34. Which of the following best explains;why athletes have the potential to have a higher income than civil service;individuals (policeman, teachers, fire fighters, etc?)?;A) There is a high demand for great;athletes;B) There is a high supply of civic service;individuals;C) There is a low supply of great athletes;D) Because of differences in supply and;demand, equilibrium wages will be higher for athletes than civic service;individuals;E) all of the above;35. Which sector currently employs the;highest percentage of workers in the U.S.?;A) agriculture;B) service;C) manufacturing;D) professional sports;E) industrial;36. Incomes may be different from one group;of people to the next because of;A) discrimination between the groups;B) differences in education among the;groups;C) differences in productivity among the;groups;D) all of the above;E) none of the above;37. Labor unions typically negotiate wages;employee benefits, and;A) company stock dividends.;B) employee tax deductions.;C) workplace rules and practices.;D) company marketing strategies.;E) all of the above;38. What is the name of the process when;management and a labor union negotiate a new labor agreement?;A) arbitration;B) collective bargaining;C) conciliation;D) mediation;E) injunction;39. When citizens are subject to an income;level that falls below the poverty threshold, the U. S. government often;initiates..;A) Policies that punish those taking;advantage of these people.;B) A ?safety net? that is created to reduce;the level of poverty.;C) Steps to encourage private entities;such as individual and corporations, to reduce the poverty level.;D) Both a and b.;E) Both b and c.;40. Most of the total income earned in the;U.S. economy was ultimately paid to households in the form of;A) rent.;B) wages.;C) interest.;D) profit.;41. When a labor market experiences a;surplus of labor, there is downward pressure on;A) wages.;B) the marginal productivity of labor.;C) final product price.;D) the demand for labor.;42. When the supply of workers is scarce;one would predict that market wages would be;A) determined solely by factors that affect;demand.;B) determined outside the domain of the;neoclassical theory.;C) high, other things equal.;D) low, other things equal.;43. For a given wage, which of the;following statements is true?;A) The supply of labor for easy jobs;exceeds that for difficult jobs.;B) The supply of labor for fun jobs exceeds;that for dull jobs.;C) The supply of labor for safe jobs;exceeds that for dangerous jobs.;D) all of the above


Paper#57897 | Written in 18-Jul-2015

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