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homework 1
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Chapter 1_ a command economy
Question 1 1 / 1 point
In countries like _____________ the
command economy predominates.
a) Germany and France
b) Cuba and North Korea
c) China and Vietnam
d) South Africa and Kenya
Chapter 1_market-oriented economy
Question 2 1 / 1 point
Because of their relatively small
national economies, which of the following is most likely considered to be the
most important factor for Belgium, Korea, and Canada to take full advantage of
specialization?
a) command economy
b) division of labour
c) economies of scale
d) international trade
Chapter 1_Black market
Question 3 1 / 1 point
Which of the following best denotes
the reason for the existence of substantial black markets?
a) a market-oriented economy
b) a command economy
c) government laws and rules
d) the microeconomy
Chapter 1_type of market
Question 4 1 / 1 point
In the ______________, households
receive goods and services and pay firms for them.
a) labor market
b) savings market
c) goods and services market
d) financial capital market
Chapter 1_Specialization
Question 5 1 / 1 point
_____________ - a term referring to
the fact that for many goods, as the level of production increases, the average
cost of producing each individual unit declines.
a) Specialization
b) Economies of scale
c) Division of labor
d) Skill
Chapter 1 _The circular flow diagram
Question 6 1 / 1 point
In the circular flow diagram model:
a) households receive income from
businesses in exchange for providing inputs and use that income to buy goods
and services from businesses.
b) businesses receive revenues from
households in exchange for providing goods and services and use those revenues
to buy inputs from households.
c) households receive revenue for
selling goods and services to businesses, and use that revenue to buy inputs
from businesses.
d) Both (a) and (b) are correct.
Chapter 2 _positive statements_ppf
Question 7 1 / 1 point
Philosophers draw a distinction
between positive statements, which describe the world as it is, and
___________________s, which describe how the world should be.
a) opportunity cost
b) trade-off
c) budget constraint
d) normative statement
Chapter 2_scarcity
Question 8 1 / 1 point
Scarcity exists because of:
a) specialization and division of
labor.
b) the allocation of goods by prices
c) the market mechanism.
d) unlimited wants and limited
resources.
Chapter 2 _opportunity costs
Question 9 1 / 1 point
The opportunity cost of an action:
a) is a subjective valuation that
can be determined only by the individual who chooses the action.
b) can be determined by adding up
the bills incurred as a result of the action.
c) can be objectively determined
only by economists.
d) can be determined by considering
both the benefits that flow from as well as the monetary costs incurred as a
result of the action.
Chapter 2_opportunity cost problems
Question 10 1 / 1 point
"If I didn't have class
tonight, I would save the $4 campus parking fee and spend four hours at work
where I earn $10 per hour." The opportunity cost of attending class this
evening is:
a) $0
b) $40
c) $44
d) $4
Chapter 2 _budget constraint
Question 11 1 / 1 point
The slope of the _________________
is determined by the relative price of the two goods, which is calculated by
taking the price of one good and dividing it by the price of the other good.
a) personal preference
b) utility level
c) budget constraint
d) opportunity set
Chapter 2 _ The marginal benefit
Question 12 1 / 1 point
The marginal benefit of a slice of
pizza is the:
a) difference between the value of
the slice to the consumer and the price of the slice.
b) price of the slice of pizza
c) total amount that a consumer is
willing to pay for a whole pizza, divided by the number of slices
d) maximum amount that a consumer is
willing to pay for the slice.
Chapter 2 _utility
Question 13 1 / 1 point
The lesson of __________ is to
forget about the money that’s irretrievably gone and instead to focus on the
marginal costs and benefits of future options.
a) budget constraints
b) sunk costs
c) marginal analysis
d) marginal utility
Chapter 2 _marginal utility
Question 14 1 / 1 point
The law of
____________________________ explains why people and societies rarely make
all-or-nothing choices.
a) utility
b) diminishing marginal utility
c) marginal analysis
d) consumption
Chapter 2 _opportunity cost _sunk
costs
Question 15 1 / 1 point
In many cases, it is reasonable to
refer to the ________________ as the price.
a) budget constraint
b) sunk cost
c) budget constraint
d) opportunity cost
Chapter 2 _opportunity costs_budget
constrains
Question 16 1 / 1 point
In deciding how many hours to work,
Beulah will make a choice that maximizes her _______; that is, she will choose
according to her preferences for leisure time and income.
a) utility
b) budget constraint
c) opportunity set
d) production possibilities frontier
Chapter 2 _law of diminishing
marginal utility
Question 17 1 / 1 point
The choice on a production
possibilities set that is socially preferred, or the choice on an individual’s
budget constraint that is personally preferred, will display
_____________________.
a) allocative efficiency
b) scarcity
c) the production possibilities
frontier
d) trade-offs
Chapter 2 problems
Question 18 1 / 1 point
The slope of the _________________
is determined by the relative price of the two goods, which is calculated by
taking the price of one good and dividing it by the price of the other good.
a) Opportunity cost
b) production possibilities frontier
c) productive efficiency
d) budget constraint
homework 2
hapter 3 Random
Question 1 0 / 1 point
According to the law of supply:
a) there is a direct relationship
between price and quantity demanded.
b) there is a direct relationship
between price and the quantity supplied.
c) there is an inverse relationship
between price and the quantity supplied.
d) there is an inverse relationship
between price and quantity demanded.
Question 2 1 / 1 point
The nature of demand indicates that
as the price of a good increases:
a) suppliers wish to sell less of
it.
b) buyers desire to purchase less of
it.
c) more of it is desired.
d) more of it is produced.
Question 3 1 / 1 point
______________ are enacted when
discontented sellers, feeling that prices are too low, appeal to legislators to
keep prices from falling.
a) Subsidies
b) Rent controls
c) Price floors
d) Price ceilings
Question 4 1 / 1 point
Economists refer to the relationship
that a higher price leads to a lower quantity demanded as the _____________.
a) law of demand
b) price model
c) income gap
d) market equilibrium
Question 5 1 / 1 point
The ____________ is the quantity
where quantity demanded and quantity supplied are equal at a certain price.
a) supply schedule
b) demand schedule
c) quantity demanded
d) equilibrium quantity
Question 6 1 / 1 point
Any given demand or supply curve is
based on the ceteris paribus assumption that ___________________.
a) what is true for the individual
is not necessarily true for the whole.
b) all else is held equal
c) everything is variable.
d) no one knows which variables will
change and which will remain constant.
Question 7 1 / 1 point
_________________ refers to the
total number of units that are purchased at that price.
a) quantity demanded
b) quantity
c) market quantity
d) supply
Question 8 1 / 1 point
The downward slope of the demand
curve again illustrates the pattern that as _____________ rises,
_________________ decreases.
a) price, quantity demanded
b) quantity supplied, quantity
demanded
c) price, quantity supplied
d) quantity demanded, price
Question 9 1 / 1 point
In economics, the demand for a good
refers to the amount of the good that people:
a) will buy at various prices.
b) would like to have if the good
were free.
c) need to achieve a minimum
standard of living.
d) will buy at alternative income
levels.
Chapter 3 MC Random
Question 10 1 / 1 point
A 10 percent increase in the price
of soda leads to a 20 percent increase in the quantity of iced tea demanded. It
appears that:
a) cross-price elasticity of demand
for iced tea is 2.
b) elasticity of demand for iced tea
is 2 and is elastic.
c) cross-price elasticity of demand
for soda is -0.5.
d) elasticity of demand for soda 0.5
and is inelastic.
Question 11 0 / 1 point
__________ is the change in what is
on the horizontal axis (quantity) divided by the change in what is on the
vertical axis (price).
a) Demand
b) Elasticity
c) Supply
d) Revenue
Question 12 1 / 1 point
The longer the time period
considered, the more the elasticity of supply tends to:
a) increase
b) converge to zero
c) remain constant
d) decrease
Chapter 3 Problems
Question 13 0 / 1 point
Refer to Figure 4-2. A change from
Point A to Point B represents a(n):
a) increase in demand.
b) increase in quantity demanded.
c) decrease in quantity demanded.
d) decrease in demand.
Chapter 5 elastisity definition
Question 14 0 / 1 point
Demand is said to be _____________
when the quantity demanded is not very responsive to changes in price.
a) inelastic
b) unit elastic
c) independent
d) elastic
Question 15 1 / 1 point
The price elasticity of demand
measures the:
a) responsiveness of quantity
demanded to a change in price.
b) responsiveness of price to a
change in quantity demanded.
c) responsiveness of quantity
demanded to a change in quantity supplied.
d) responsiveness of quantity
demanded to a change in income.
Question 16 1 / 1 point
Demand is said to be __________ when
the quantity demanded changes at the same proportion as the price.
a) unit elastic
b) independent
c) inelastic
d) elastic
Chapter 5 Graph
Question 17 0 / 1 point
Refer to Figure 7-1. With reference
to Graph A, at a price of $10, total revenue equals:
a) $1,000.
b) $200.
c) $500.
d) $400.
Chapter 5 Elasticity dem_sup
Question 18 1 / 1 point
Supply is said to be ____________
when the quantity supplied is very responsive to changes in price.
a) inelastic
b) elastic
c) unit elastic
d) independent
Chapter 5 Problems
Question 19 0 / 1 point
A 10 percent decrease in the price
of potato chips leads to a 30 percent increase in the quantity of soda
demanded. It appears that:
a) elasticity of demand for potato
chips is 3.
b) cross-price elasticity of demand
for soda is -3.
c) elasticity of demand for soda 3.
d) elasticity of demand for potato
chips is 3.
Question 20 1 / 1 point
A 25 percent decrease in the price
of breakfast cereal leads to a 20 percent increase in the quantity of cereal
demanded. As a result:
a) total revenue will remain
constant.
b) total revenue will decrease.
c) the elasticity of demand will
increase.
d) total revenue will increase.
Chapter 5 economists are sketching
examples of demand and supply
Question 21 1 / 1 point
A demand or supply curve with
______________ would be horizontal in appearance.
a) infinite elasticity
b) zero elasticity
c) infinite cost elasticity
d) unitary elasticity
Question 22 1 / 1 point
When economists are sketching
examples of a demand or supply curve that is close to horizontal, they refer to
that demand or supply curve as ____________.
a) elastic
b) inelastic
c) price inelasticity
d) having zero elasticity
Question 23 1 / 1 point
The evidence on the supply curve of
financial capital is controversial, but at least in the short run, the
elasticity of savings with respect to the interest rate appears to be
__________.
a) inelastic
b) negative
c) elastic
d) perfectly elastic
Question 24 0 / 1 point
Youth smoking seems to be more
__________ than adult smoking—that is, the quantity of youth smoking will fall
by a greater percentage than the quantity of adult smoking in response to a
given percentage increase in price.
a) elastic
b) inelastic
c) unitary elastic
d) cross-price elastic
Question 25 0 / 1 point
When economists are sketching
examples of demand and supply, it is common to sketch a demand or supply curve
that is close to vertical, and then to refer to that curve as _________.
a) inelastic
b) elastic
c) income elasticity
d) unitary elasticity
homework 3
Submission View
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Chapter 6 utility definition
Question 1 1 / 1 point
Economists are able to determine
total utility by:
a) multiplying the marginal utility
of the first unit consumed by the number of units consumed.
b) summing up the marginal utilities
of each unit consumed.
c) multiplying the marginal utility
of the last unit consumed by the unit price.
d) multiplying the marginal utility
of the last unit consumed by the number of units consumed.
Question 2 1 / 1 point
The term _____________ describes a
situation where a ________________ causes a reduction in the buying power of
income, even though actual income has not changed.
a) substitution effect; lower price
b) income effect; higher price
c) intertemporal budget; lower price
d) intertemporal budget; higher
price
Chapter 6 American households
Question 3 1 / 1 point
Approximately what portion of annual
consumption is typically spent by American households on shelter?
a) one-third
b) one-fourth
c) one-half
d) one-quarter
Chapter 6 maximizing utility
Question 4 1 / 1 point
As a general rule,
utility-maximizing choices between consumption goods occur where the:
a) rise in income has created the
greatest utility.
b) price ratio and marginal
utilities ratio of two goods is equal.
c) constraints on budget
expenditures has fallen substantially.
d) higher-income households have the
greatest satisfaction.
Question 5 1 / 1 point
Which of the following is considered
to be a tell-tale signal that the point with the highest total utility has been
found?
a) the marginal utility per dollar
is controlled by trade-offs
b) the quantities demanded change so
total utility rises
c) the demand curves are flatter
reducing quantity
d) the marginal utility per dollar
is the same for both goods
Question 6 1 / 1 point
The most common pattern for marginal
utility is ____________________.
a) a long-term perspective
theoretical model
b) a budget constraint model
c) diminishing marginal utility
d) substitute consumption
Chapter 6 utility-maximizing point
Question 7 1 / 1 point
Kim has $24 per week in her
entertainment budget. She splits her time between going to the movies and yoga
classes. Each movie costs $8 while each yoga class costs $3. The total utility
from each of these activities is set out in the table below. What is Kim's
total utility maximizing point?
Movies Total Utility Yoga Classes
Total Utility
0 0 0 0
1 40 1 30
2 75 2 55
3 105 3 76
4 130 4 92
5 160 5 106
6 114
7 116
8 117
a) 1 movie, 5 yoga classes
b) 2 movies, 2 yoga classes
c) 0 movies, 8 yoga classes
d) 3 movies, 0 yoga classes
Chapter 6 Utility_consumer choice
Question 8 1 / 1 point
Saving money is a(n)
____________________, because it involves less consumption in the present, but
the ability to consume more in the future.
a) risk premium
b) budget constraint
c) intertemporal choice
d) opportunity cost
Question 9 1 / 1 point
Even with wage increases, the supply
curve of labor is most often inelastic for which of the following?
a) part-time workers
b) lawyers
c) full-time workers
d) massage therapists
Question 10 1 / 1 point
The _________________ budget
constraint shows the tradeoff between present and future consumption.
a) inflation
b) time-value of money
c) utility-maximizing
d) intertemporal choice
Chapter 6 utility maximizing choice
(table)
Question 11 1 / 1 point
Troy has a part-time job in a book
store to help pay for his college. He can work up to 30 hours each week at his
job, which pays $9 per hour. The table below shows his utility from different
levels of leisure and income. Troy currently works 20 hours per week. If he
decides to work 30 hours instead, his marginal utility gain from the additional
income is ____.
Hours of Leisure Total Utility from
Leisure Income Total Utility from Income
0 0 0 0
5 18 45 30
10 34 90 54
15 48 135 72
20 56 180 81
25 60 225 87
30 62 270 90
315 92
a) 6
b) 12
c) 3
d) 9
Chapter 7 industry_structure
Question 12 1 / 1 point
________________________ arises
where many firms are competing in a market to sell similar but differentiated
products.
a) Monopolistic competition
b) Oligopolistic competition
c) Monogopolised competition
d) Perfect competition
Chapter 7 cost
Question 13 1 / 1 point
A firm's ___________ consist of expenditures
that must be made before production starts that typically, over the short run,
_______________ regardless of the level of production.
a) variable costs; are constantly
changing,
b) variable costs; do not change,
c) fixed costs; are consistently
changing,
d) fixed costs; do not change,
Chapter 7 Diminishing variable
returns
Question 14 1 / 1 point
In order to determine the average
variable cost, the firm's variable costs are divided by
_______________________.
a) the quantity of output
b) its' average costs
c) diminishing marginal costs
d) its' fixed costs
Question 15 1 / 1 point
In order to determine ____________,
the firm's total costs must be divided by the quantity of its output.
a) fixed costs
b) diminishing marginal returns
c) variable cost
d) average cost
Chapter 7 economies of scale
Question 16 1 / 1 point
The term __________________
describes a situation where the quantity of output rises, but the average cost
of production falls.
a) diseconomies of scale
b) economies of scale
c) diminishing marginal returns
d) marginal cost output
Question 17 0 / 1 point
In microeconomics, the term
_____________________ is synonymous with economies of scale.
a) increasing returns to scale
b) constant returns to scale
c) diminishing marginal returns
d) decreasing returns to scale
Chapter 7 total revenue
Question 18 1 / 1 point
_____________ is calculated by
taking the quantity of everything that is sold and multiplying it by the sale
price.
a) Average profit margin
b) Total profits
c) Total cost
d) Total revenue
Chapter 7 Problems with tables
Question 19 1 / 1 point
The table below sets out cost
information for the production of volley balls. Some values are missing. Which
of the following statements is correct?
Quantity Variable Cost Fixed Cost
Total Cost Average Variable Cost ($ per unit) Marginal Cost ($ per unit)
0 0 30 30 0 -
1 12 B 12 E
2 25 C D F
3 A 72 14 G
a) A = 42; E = 40
b) A = 70; E = 12
c) A = 70; E = 40
d) A = 42, E = 12
Question 20 1 / 1 point
Refer to the table below.
Quantity Cost
(in dollars) Fixed Costs
(in dollars) Total Costs
(in dollars) Average Total Costs
(in dollars per unit) Average
Variable Costs (in dollars per unit) Marginal Costs
(in dollars per unit)
0 0 40 40 - - - - - -
1 1 40 55 15 55 15
2 35 40 75 17.5 37.5 20
3 60 40 100 20 33.3 25
4 90 40 130 22.5 32.5 30
5 125 40 155 25 31 35
6 160 40 200 26.6 33.3 40
If this information were used to
create a total cost graph, the curve should
a) begin at 40 on the vertical axis
and slope upward.
b) become steeper as quantity
increases.
c) become steeper due to diminishing
returns.
d) reflect all of the above.
Chapter 7 costs of production
Question 21 1 / 1 point
The _____________________ curve will
always lie below the curve for average cost because average cost includes _____________
in the numerator of the calculation.
a) average variable cost; total
costs
b) marginal cost; total costs
c) marginal cost; fixed costs
d) average variable cost; fixed
costs
Question 22 0 / 1 point
_____________________ help to
explain why every economy, as it develops, has an increasing proportion of its
population living in urban areas.
a) Constant returns to scale
b) Economies of scale
c) Diseconomies of scale
d) Agglomeration factors
Question 23 0 / 1 point
A situation where the level of
output, scale and average costs are all rising is called
a) decreasing returns to scale
b) diseconomies of scale
c) diminishing returns to scale
d) both a and b are correct
Question 24 1 / 1 point
If a comparison between average cost
and price reveals whether a firm is earning profits, then a comparison between
average variable cost and price reveals
a) that if the market price is below
average cost, then profits will be negative.
b) total revenues are the quantity
produced multiplied by the price.
c) whether the firm is earning
profit if fixed costs are left out of the calculation.
d) that if the market price exceeds
average cost, profits will be positive.
Chapter 7 questions with graph
Question 25 0 / 1 point
The graph above illustrates the
electricity market. Consider market competition between firms where price is
based on AR and select the most appropriate answer.
a) this market is perfectly
competitive with negative profits possible in the long-run
b) this market is imperfectly
competitive with excess profits possible in the short-run
c) this market is imperfectly
competitive with excess profits possible in the long-run
d) this market is perfectly
competitive with excess profits possible in the short-run
homework 4
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Chapter 8 definitions
Question 1 1 / 1 point
The term _________________ refers to
a firm operating in a perfectly competitive market that must take the
prevailing market price for its product.
a) trend setter
b) business entity
c) price setter
d) price taker
Question 2 1 / 1 point
Economic profit can be derived from
calculating total revenues minus all of the firm’s costs,
a) including its marginal revenue.
b) including its opportunity costs.
c) excluding its marginal revenue.
d) excluding its opportunity costs.
Question 3 0 / 1 point
An _________________ is calculated
by subtracting the firm's costs from its total revenues,
_______________________________ .
a) accounting profit; including
opportunity cost
b) economic profit; excluding
opportunity cost
c) accounting profit; excluding
opportunity cost
d) opportunity cost; including
economic profit
Question 4 1 / 1 point
A perfectly competitive industry is
a
a) realistic extreme.
b) hypothetical extreme.
c) realistic assumption.
d) hypothetical assumption.
Chapter 8 perfect_competition
Question 5 1 / 1 point
Idaho farmers can sell as large a
quantity of their potato crop as they wish,
a) if they set their own price in
the short run, but in the long run, the market sets the price.
b) if they set their own price in
the long run, but in the short run, the market sets the price.
c) provided each is willing to
accept the prevailing market price.
d) provided quality is perceptible
and determines the market price.
Question 6 1 / 1 point
Firms operating in a market
situation that creates ___________________, sell their product in a market with
other firms who produce identical or extremely similar products.
a) perfect competition
b) a perfect monopoly
c) an oligopoly
d) a free-market
Chapter 8 total revenue and total
cost
Question 7 1 / 1 point
If marginal cost is rising in a
competitive firm's short-run production process and its average variable cost
is falling as output is increased, then
a) marginal cost is below average
variable cost
b) marginal cost is below average
fixed cost.
c) average fixed cost is constant.
d) marginal cost is above average
variable cost.
Question 8 1 / 1 point
In economic terms, a practical
approach to maximizing profits requires an examination of how changes in
production affect ________________ and ________________ .
a) total revenue; marginal cost
b) marginal revenue; marginal cost
c) total revenue; total cost
d) marginal revenue; total cost
Question 9 1 / 1 point
What happens in a perfectly
competitive industry when economic profit is
greater than zero?
a) existing firms may expand their
operations
b) firms may move along their LRAC
curves to new outputs
c) there may be pressure on the
market price to fall
d) new firms may enter the industry
and all of the above
Chapter 8 marginal product
Question 10 0 / 1 point
In a perfectly competitive market
setting, which of the following would be a true statement?
a) Wage rates trend toward marginal
revenue product levels.
b) Market price automatically sets
itself exactly at equilibrium.
c) Market price rarely trends toward
the equilibrium value.
d) Wage rates mirror marginal
revenue product levels exactly.
Chapter 8 Problems with graphs
Question 11 1 / 1 point
Refer to the diagram above. Which of
the following explains the slope of the total revenue curve illustrated in this
graph?
a) total revenue shown as a straight
line sloping up indicates a perfectly competitive firm
b) the slope of the total revenue
curve is determined by the price of the goods produced
c) at higher levels of output,
diminishing returns will cause total cost to slope downward steeply
d) the slope of the total revenue
curve is explained by both a and b above.
chapter 8 Problems with table
Question 12 0 / 1 point
Given the data provided in the table
below, the total revenue (TR) for production at quantity (Q) level 4 equals
Q P TC TR MR MC Profit
0 $5 $9
1 $5 $10
2 $5 $12
3 $5 $15
4 $5 $19
5 $5 $24
6 $5 $30
7 $5 $45
a) $15.00
b) $20.00
c) zero
d) $1.00
Chapter 8 Problems
Question 13 1 / 1 point
Kate's 24-Hour Breakfast Diner menu
offers one item, a $5.00 breakfast special. Kate's costs for servers, cooks,
electricity, food, etc. average out to $3.95 per meal. Her costs for rent,
insurance cleaning supplies and business license average out to $1.25 per meal.
Since the market is highly competitive, Kate should
a) raise her prices above the
perfectly competitive level set by the market.
b) lay-off her staff, break her
lease, and close the business down immediately.
c) keep the business open in the
short-run, but plan to go out of business in the long-run.
d) keep the business open in the
short-run, and plan to expand the business in the long-run.
Chapter 9 definitions
Question 14 1 / 1 point
Government ______________
regulations specify that inventors will maintain exclusive legal rights to
their respective inventions for ______________ .
a) trade secret; an unlimited time
b) trademark; an unlimited time
c) patent; a limited time
d) copyright; a limited time
Question 15 1 / 1 point
Which of the following is most
unlikely to present a barrier to entry into a market?
a) market forces
b) deregulation
c) patent laws
d) technological advantages
Question 16 1 / 1 point
Which of the following will present
the least amount of concern to a firm that has a monopoly over a particular industry?
a) whether consumers will purchase
its product
b) the competitive actions of other
business firms
c) whether consumers will spend on
different products
d) barriers to entry and
competitors’ patent protection
Question 17 1 / 1 point
The US government has registered
___________________ on behalf of business firms to protect a particularly
distinct element each has selected for its ability to aid consumers to easily
__________________ .
a) 800,000 trademarks; identify the
source of goods
b) 1 million copyright licenses;
identify the authors of creative works
c) 200,00 patents; license for use
d) 200,000 trade secrets; create a
natural monopoly
Question 18 1 / 1 point
Deregulation occurs when a
government eliminates or scales back rules relating to all but one of the
following. Which one is it?
a) quantities that can be produced
b) natural monopoly
c) prices that can be charged
d) conditions of entry in a certain
industry
Chapter 9 monopoly industry
Question 19 0 / 1 point
A natural monopoly occurs when the
quantity demanded is ________ the minimum quantity it takes to be at the bottom
of the long-run average cost curve.
a) greater than
b) less than
c) equal to
d) a or c above
Chapter 9 patents
Question 20 0 / 1 point
Copyright protection legislation provides
protection for original works
a) during the author's life plus 20
years
b) until the author is 75 years of
age
c) during the author's life plus 70
years
d) until the author is 70 years of
age
Question 21 1 / 1 point
When J.K. Rowling exerts copyright
ownership of her literary works, she creates a monopoly by restricting
a) entry into the market.
b) unit production costs.
c) the number of inventors.
d) demand for the product.
Chapter 9 about the graphs
Question 22 0 / 1 point
A monopolist is able to maximize its
profits by
a) setting output at MR = MC and
setting price at the demand curve's highest point.
b) producing maximum output where
price is equal to its marginal cost.
c) producing output where MR = MC
and charging a price along the demand curve.
d) setting the price at the level
that will maximize its per-unit profit.
Chapter 9 monopoly curves
Question 23 0 / 1 point
_____________ and __________________
refer to the quantity and price at a point in time.
a) Productive; allocative efficiency
b) Monopoly; productive efficiency
c) Monopoly; allocative efficiency
d) Profit; maximization
Question 24 0 / 1 point
The total revenue curve for a
monopolist will
a) start high, decline, and then
rise.
b) start low, decline, and then
rise.
c) start high, rise, and then
decline.
d) start low, rise, and then
decline.
Chapter 9 Problems with table
Question 25 1 / 1 point
Refer to the table below. If the
information pertains to the demand curve and the long run average cost curve
for an electric company that is a natural monopoly, then what quantity will be
produced in this market?
Price Quantity Demanded LRAC
$12 100 $6.00
$10 200 $5.50
$8 300 $5.33
$7 400 $5.50
$6 500 $6.00
a) 100
b) 400
c) 200
d) 300
________________________________________
homework 5
Chapter 10 definitions
Question 1 0 / 1 point
Which of the following would be
classified as a differentiated product produced by a monopolistic competitor?
a) Channel No. 5
b) natural gas
c) tap water
d) electricity
Question 2 1 / 1 point
Perfect competition and monopoly
stand at _____________ of the spectrum of competition.
a) opposite ends
b) the high end
c) the mid-way point
d) the low end
Question 3 1 / 1 point
_____________ occurs when
circumstances have allowed several large firms to have all or most of the sales
in an industry.
a) A cartel
b) Collusion
c) A monopoly
d) An oligopoly
Chapter 10 monop_competion_oligopoly
curves
Question 4 1 / 1 point
If a perfectly competitive firm
raises its price, the quantity demanded of its product _____________.
a) diminishes temporarily in the
short run
b) falls below marginal cost
c) falls to zero
d) stays the same
Question 5 1 / 1 point
If a monopoly or a monopolistic
competitor raises their prices, the quantity demanded ____________.
a) will decline in the short run
b) will expand
c) will decline
d) stays the same
Question 6 1 / 1 point
The demand curve as perceived by a
monopolistic competitor is ______________ .
a) upward-sloping
b) downward-sloping
c) U shaped
d) flat
Chapter 10 costs
Question 7 1 / 1 point
A monopolistically competitive firm
may earn abnormally high profits in the
a) short run, but after entry
occurs, the long term perceived demand curve shifts to the right.
b) short term, but the process of
entry will drive those profits to zero in the long run.
c) long term, but the process of
entry will drive those profits to zero in the short run.
d) long run, but after entry occurs,
the short term perceived demand curve shifts to the right.
Question 8 1 / 1 point
If the firm is producing at a
quantity of output where marginal revenue exceeds marginal cost, then,
a) the firm's perceived demand will
shift to the left.
b) each marginal unit adds profit by
bringing in less revenue than its cost.
c) the firm is now earning zero for
profit.
d) the firm should keep expanding
production.
Chapter 10 the social benefits
Question 9 1 / 1 point
In a monopolistically competitive
market, the rule for maximizing profit is to set MR = MC, which means
a) price is equal to marginal cost.
b) price is higher than marginal revenue.
c) price is equal to marginal
revenue.
d) price is lower than marginal
revenue.
Question 10 1 / 1 point
A successful advertising campaign
may allow competing monopolists to
a) sell a greater quantity.
b) charge a higher price.
c) increase its profits.
d) do all of the above.
Chapter 10 prisoner's dilemma
situation
Question 11 1 / 1 point
If one firm operating in an
oligopoly raises its price and other firms do not do so,
a) the sales of the firm that
increased its price will decline sharply.
b) the sales of the firm with the
higher price will decline slightly.
c) the egos of all the top
executives will eventually lead to cooperation at that higher price.
d) the firm with the increased price
will have its higher profits sustained through cooperation.
Question 12 1 / 1 point
The single most common form of
competition in the U.S. is
a) monopolistic competition among
firms with differentiated products.
b) oligopolistic competition in a
certain market with similar products.
c) perfect competition because it
displays product and allocative efficiencies.
d) perfect competition among firms
with differentiated products.
Chapter 10 Problems maximize profits
Question 13 1 / 1 point
Mary competes in a monopolistically
competitive market. Suddenly, 5 new firms enter the market, causing her
perceived demand curve to shift. The following tables show her original and new
demand curves and her cost information.
Assume that Mary can only choose
from the quantities of output given in the table. By how much will the quantity
that she produces change after the new firms enter the market?
Original Demand Curve
Price Quantity TC
30 0 $130
25 10 $140
20 20 $260
15 30 $450
10 40 $660
New Demand Curve
Price Quantity TC
25 0 $130
20 10 $140
15 20 $260
10 30 $450
5 40 $660
a) increase by 10
b) decrease by 5
c) increase by 5
d) decrease by 10
Chapter 10 Problems_ firm's profits
Question 14 0 / 1 point
A monopolistic competitor has the
following information about cost and demand.
Quantity Price ($) Total Revenue ($)
Marginal Revenue ($) Total Cost ($) Marginal Cost ($) Average Cost($)
0 25 0 25 30 — —
2 24 48 23 35 2.5 17.5
4 23 92 21 45 5 11.25
6 22 132 19 60 7.5 10
8 21 168 17 77 8.5 9.63
10 20 200 15 100 11.5 10
12 19 228 13 126 13 10.5
14 18 252 11 165 19.5 11.79
16 17 272 9 210 22.5 13.13
18 16 288 7 260 25 14.44
20 15 300 5 320 30 16
What will the firm’s profits equal
in the short run?
a) $0
b) $91
c) $228
d) $102
Chapter 11_monopoly_antitrust_policy
Question 15 0 / 1 point
______________ give government the
power to block certain mergers, and in some cases, to break up large firms into
smaller ones.
a) Antitrust laws
b) Nationalization policies
c) Restrictive practices
d) Market regulations
Question 16 0 / 1 point
_____________ has occurred if a
government-owned firm becomes privately owned.
a) Regulatory capture
b) Privatization
c) Nationalization
d) Deregulation
Question 17 1 / 1 point
The four-firm ___________________
measures the percentage share of the total sales in the industry that is
accounted for by the largest four firms.
a) production ratio
b) market share ratio
c) concentration ratio
d) coordination ratio
Chapter 11 antitrust law
Question 18 1 / 1 point
Antitrust regulations would most
likely require one of the following in order to determine whether or not a merger
may enhance competition. Which one is it?
a) obvious objective judgments.
b) highly complex analytical tools.
c) analysis using numerical tools.
d) readily qualified judgments.
Question 19 1 / 1 point
In the U.S., about __________ of all
reported merger and acquisition transactions in 2012 exceeded $500 million,
while about _________ exceeded $1 billion.
a) 99%; 1%
b) 80%; 20%
c) 60%; 40%
d) 25%; 11%
Question 20 1 / 1 point
The main challenge for antitrust
regulators is
a) to figure out how to best benefit
consumers.
b) to promote the concept of a
market-oriented economy.
c) to determine when a merger may
hinder competition.
d) to facilitate privatization of
government assets.
Chapter 11 regulation
Question 21 1 / 1 point
Which of the following poses a
difficult challenge for U.S. competition policy?
a) monopolistic competition
b) natural monopoly
c) perfect competition
d) monopoly
Question 22 0 / 1 point
There have been two especially
important shifts in how markets are defined in recent decades: one involves
_________________ and the other involves _____________.
a) technology; globalization
b) globalization; communication
technologies
c) the Internet; technology
d) communication technologies; the
Internet
Question 23 1 / 1 point
Prior to the onset of deregulation
in the US during the 1970s, it was common for measurements of concentration
ratios and HHIs
a) to exceed 1,000
b) to extend past national borders.
c) to stop at national borders.
d) to exceed 10,000
Chapter 11 Problems four-firm
concentration ratio
Question 24 1 / 1 point
The information below sets out the
estimated market shares for the cellular phone manufacturing market.
Firm Market Share
Nokia 36%
Fujitsu 3%
Kyocera 3%
LG 6%
Motorola 16%
Samsung 6%
Sanyo 4%
Siemens 7%
Sony Ericsson 11%
Plus 8 more firms with 1% each
Based on this information, the
Herfindahl-Hirschman Index is
a) 1,836
b) 1,272
c) 2,216
d) 1,800
Chapter 11 Problems
_monopoly_antitrust law
Question 25 0 / 1 point
City Gas is a natural monopoly that
supplies natural gas to a particular city. Its cost and demand information are
given below.
Quantity
(Millions of therms) Price
($ per therm) Total Cost
(million $)
1 48 35
2 44 64
3 38 90
4 30 113
5 20 133
6 8 150
An unregulated monopoly will produce
____ million therms of natural gas and sell each therm for ____.
a) 44; $2
b) 38; $3
c) 2; $44
d) 3; $38
homework 6
Your quiz has been submitted
successfully.
Chapter 12 _env_protection
Question 1 0 / 1 point
In addition to the current levels of
air and water pollution, a list of important environmental issues would most
likely include:
a)
emissions of greenhouse gases
b)
safe disposal of hazardous waste
materials
c)
destruction of wetlands and other
habitats
Correct Answer
d)
extinction of species and all of the
above
Question 2 0 / 1 point
Command-and-control regulation is a
body of law that
a)
fails to consider private costs of
firms.
Incorrect Response
b)
specifies allowable quantities of
pollution.
c)
details which pollution-control
technologies must be used.
Correct Answer
d)
can include both b and c.
Question 3 1 / 1 point
Since 1969, when the Cuyahoga River
in Ohio was so polluted that it spontaneously burst into flame, the overall
quality of water in the U.S. has
a)
steadily declined.
b)
remained unchanged.
c)
remained a non-issue.
Correct Response
d)
steadily improved.
Question 4 0 / 1 point
A pollution charge is a form of tax
imposed on
a)
low-income market-orientated
industries.
Incorrect Response
b)
pollution control technologies.
Correct Answer
c)
the quantity of pollution that a
firm emits.
d)
every economy in the world.
Chapter 12
_env_protection_negative_externalities
Question 5 0 / 1 point
The arguments presented by
economists regarding U.S. environmental command-and-control regulations
generally
a)
accept the goal of reducing
pollution.
b)
question the regulations as being
the best policy tools for meeting reduction goals.
c)
assert that these laws are clear of
the usual fine print, loopholes and exceptions.
Correct Answer
d)
lack flexibility and a and b above.
Question 6 0 / 1 point
To be effective, U.S.
command-and-control environmental regulation required
a)
social costs of industrial pollution
to become unavoidable business costs.
b)
firms to take the social costs of
pollution into account.
c)
firms to increase their costs by
installing specified anti-pollution equipment.
Correct Answer
d)
the EPA to oversee all environmental
laws and all of the above.
Question 7 0 / 1 point
Market-oriented environmental tools
_______________ for firms to take the social costs of pollution into account
and ____________________ in reacting to these incentives.
Correct Answer
a)
create incentives; allow firms some
flexibility
b)
draw distinctions; lower the social
costs incurred
c)
lack incentives; prohibit firms from
having flexibility
d)
specify particular technology; lower
the social costs incurred
Chapter 12 marketable permits
Question 8 0 / 1 point
Marketable permits can be viewed as
a form of improved _______________.
a)
command-and-control regulations
Correct Answer
b)
property rights
c)
flat fee pollution tax
d)
refundable tax credits
Question 9 0 / 1 point
In circumstances involving millions
of emitters of small amounts of pollution who have no strong interest in
trading, _________________ will typically offer a better choice for achieving
desired reductions of environmental pollution levels.
a)
enhanced property rights
b)
marketable permits
c)
ecotourism
Correct Answer
d)
pollution charges
Question 10 0 / 1 point
A beekeeper decides to locate her
business on a plot of land that is between an apple orchard and an elementary
school. A positive externality that can result is
Correct Answer
a)
the bees helping to pollinate the
orchard, leading to more fruit.
b)
the possibility of the bees stinging
the students at the school.
c)
the cost of the bee hives to the
beekeeper.
d)
the honey the bees produce.
Question 11 0 / 1 point
Rather than arguing over whether the
ultimate goal is zero pollution or a reasonable level of pollution, the
immediate focus should be to tackle the environmental issues where the
_____________________ and the __________________ .
a)
environmental benefits are greatest;
social costs are least
Correct Answer
b)
marginal benefits are greatest;
marginal costs are least
c)
social costs are greatest; environmental
benefits are least
d)
marginal benefits are least;
marginal costs are greatest
Question 12 0 / 1 point
The challenge of preserving
biodiversity,
a)
any nation itself can reduce
emissions to solve global warming.
b)
any nation acting alone can protect
biodiversity around the world.
c)
includes the full spectrum of animal
and plant genetic material.
Correct Answer
d)
a nation can protect biodiversity
within its own borders and c.
Chapter 12 problems
Question 13 0 / 1 point
The supply and demand conditions
facing a firm that makes widgets and generates a negative externality by
dumping a highly toxic sludge in a nearby river is given in the table below.
Price
Quantity Demanded
Quantity Supplied without Paying
Social Costs
Quantity Supplied after Paying Social
Costs
100
0
120
75
80
10
100
50
55
30
90
30
40
55
85
25
30
80
80
20
20
100
65
15
The equilibrium price and quantity
when social costs are taken into account are
a)
Price = $40, Quantity = 55
Correct Answer
b)
Price = $55, Quantity = 30
c)
Price = $30, Quantity = 20
d)
Price = $30, Quantity = 80
Chapter 13 random selection
Question 14 0 / 1 point
Generally, market competition and
technology can
a)
support each other.
b)
oppose each other.
c)
compliment each other.
Correct Answer
d)
sometimes a or b.
Question 15 0 / 1 point
When it is costly or impossible to
exclude someone who hasn't paid to use a particular good from using it, then
that good is classified as being
a)
public good
b)
free rider
c)
unexcludable
Correct Answer
d)
nonexcludable
Question 16 0 / 1 point
If large numbers of individuals
choose to behave as free riders,
a)
more of the public good will be
available for paying riders.
Correct Answer
b)
the public good may never be
provided.
c)
d)
public goods will quickly be
privatized.
Question 17 0 / 1 point
If I’MSmartCo’s research and
development project succeeds, then
a)
they will need to find a less
expensive way to add even more desirable characteristics.
b)
market competition will ultimately
discourage commercialization of the new technology.
Correct Answer
c)
competitors may find a way to adapt
and copy the underlying idea without incurring R&D costs.
d)
their success will be temporary
because they will inevitably fall behind other innovative competitors.
Question 18 0 / 1 point
In order for a good to be classified
as ______________ , when one person uses the good, others are also able to use
it.
a)
nonexcludable
Correct Answer
b)
nonrivalrous
c)
unexcludable
d)
unrivalrous
Chapter 13 invests in new technology
Question 19 0 / 1 point
Some studies done by economists have
found that the original inventor receives
_________________________________________________ from innovations, while other
businesses and new product users receive the rest of the benefit.
Correct Answer
a)
one-third to one-half of the total
economic benefits
b)
one-quarter to one-half of the
social and economic benefits
c)
one-quarter to one-third of the
total economic benefits
d)
one-quarter to one-third of social
and economic benefits
Question 20 0 / 1 point
One reason some economists doubt
that patent protection encourages innovation is that economic studies show that
inventors receive only __________________ of the total economic value of their
inventions in countries that ______________ .
Correct Answer
a)
one-third to one-half; already had
patents
b)
one-half to two-thirds; had existing
patents
c)
one-third to one-half; previously
had no patents
d)
one-half to two-thirds; previously
had few patents
Question 21 0 / 1 point
When technology is advancing so
quickly, even a patent from, say, two years ago may be ___________________,
because __________________________ .
a)
irrelevant; inventors are only
receiving a slice of the social value.
b)
somewhat outdated; few firms are
relying on the technology
Correct Answer
c)
completely outdated; no firm is
relying on that technology any longer
d)
irrelevant; not every idea can
remain under patent protection forever.
Question 22 0 / 1 point
In economic terms, when
I’mASoftwareCo. invests in new technology innovations,
a)
potential externalities arise.
b)
negative externalities arise.
Correct Answer
c)
positive externalities arise.
d)
competitive externalities arise.
Chapter 13 copyright
Question 23 0 / 1 point
Which of the following legislation
was enacted in 1998 to allow copyright to be extended from 50 to 70 years after
an author's death?
a)
Thomas Edison Copyright Term
Extension Act
b)
Thomas Edison Patent Restoration Act
c)
Sonny Bono Patent Restoration Act
Correct Answer
d)
Sonny Bono Copyright Term Extension
Act
Question 24 0 / 1 point
Which of the following would most
likely be recognized as a defining characteristic of a public good?
a)
the good is nonrivalrous item
b)
the good is nonexcludable item
Correct Answer
c)
the good is both a and b above
d)
the good is a separate and
identifiable item
Chapter 13 problems
Question 25 0 / 1 point
CleanAir Motors Inc. wants to build
electric cars with no emissions. However, electric motors require innovative
battery technology for adequate energy storage to meet basic daily commuting
needs. The company has several possibilities for alternative battery
technology, along with estimates of how these approaches would affect their
costs of producing the cars and their sales of the cars. These estimates are
set out in the table below. Every investment has an additi
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