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Question;Multiple Choice;Identify the choice that best completes the statement or;answers the question.;21. Kelly and David are both capable of repairing cars;and cooking meals. Which of the following scenarios is notpossible?;a. Kelly has a comparative advantage in repairing cars and;David has a comparative advantage in;cooking meals.;b. Kelly has an absolute advantage in repairing cars and;David has an absolute advantage in cooking;meals.;c. Kelly has a comparative advantage in repairing cars and;in cooking meals.;d. David has an absolute advantage in repairing cars and in;cooking meals.;22. If Shawn can produce donuts at a lower opportunity;cost than Sue, then;a. Shawn has a comparative advantage in the production of;donuts.;b. Sue has a comparative advantage in the production of;donuts.;c. Shawn should not produce donuts.;d. Shawn is capable of producing more donuts than Sue in a;given amount of time.;23. If a seller in a competitive market chooses to;charge more than the going price, then;a. the sellers? profits definitely would increase.;b. the owners of the raw materials used in production would;raise the prices for the raw materials.;c. other sellers would also raise their prices.;d. buyers will make purchases from other sellers.;24. If the price elasticity of demand for a good is;0.8, then which of the following events is consistent with a 4 percent;decrease in the quantity of the good demanded?;a. a 0.2 percent increase in the price of the good c. a 4.8;percent increase in the price of the good;b. a 3.2 percent increase in the price of the good d. a 5;percent increase in the price of the good;25. Suppose that 500 candy bars are demanded at a;particular price. If the price of candy bars rises from that price by 10 percent;the number of candy bars demanded falls to 480. Using the midpoint approach to;calculate the price;elasticity of demand, it follows that the;a. demand for candy bars in this price range is unit;elastic.;b. price increase will decrease the total revenue of candy;bar sellers.;c. price elasticity of demand for candy bars in this price;range is about 0.41.;d. price elasticity of demand for candy bars in this price;range is about 0.24.;26. Table 7-7;The only four producers in a market have the following cost;Seller Cost;Charlie $50;Quinn $100;Wrex $150;Maxine $200;Refer to Table 7-7.If the sellers bid against each;other for the right to sell the good to a consumer, then the;producer surplus will be;a. $0 or slightly more. c. $150 or slightly less.;b. $50 or slightly less. d. $200 or slightly more.;27. Refer to Table 7-7.If Charlie, Quinn, and;Wrex sell the good, and the resulting producer surplus is $300, then the;price must have been;a. $200. c. $450.;b. $300. d. $600.;28. Lois is a self-employed pet sitter. She can make 20;?housecalls? per day. She is considering hiring her sister Dora to work for;her. Both she and Dora can visit 35 houses per day. What is Dora?s marginal;product?;a. 55 c. 22.5;b. 35 d. 15;29. On a 100-acre farm, a farmer is able to produce;3,000 bushels of wheat when he hires 2 workers. He is able to produce 4,400;bushels of wheat when he hires 3 workers. Which of the following possibilities;is consistent with the property of diminishing marginal product?;a. The farmer is able to produce 5,600 bushels of wheat when;he hires 4 workers.;b. The farmer is able to produce 5,800 bushels of wheat when;he hires 4 workers.;c. The farmer is able to produce 6,000 bushels of wheat when;he hires 4 workers.;d. Any of the above could be correct.;30. Figure 18-4;This figure below shows the labor market for automobile;workers. The curve labeled Sis the labor supply curve, and the curves;labeled D1 and D2 are the labor demand curves. On the horizontal;axis, Lrepresents the quantity of labor in the market.;D;D;S;0;1;2;L;Refer to Figure 18-4.Which of the following events;would most likely explain a shift of the labor-demand curve from D2 back;to D1?;a. The price of automobiles decreased.;b. A large number of immigrants entered the;automobile-worker market.;c. A technological advance increased the marginal product of;automobile workers.;d. An increase in the demand for automobiles.

 

Paper#57959 | Written in 18-Jul-2015

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