Microeconomics Final Lone Star College (Make Up)

What is the economic concept of specialization?

• The practice of focusing on a narrow area of production
• The diversification of a country's economy
• The decision to produce everything domestically rather than importing
• The spread of production across a range of industries

Which of the following best describes the focus of macroeconomics?

• The study of individual households and firms
• The analysis of the behavior of entire economies
• The examination of the decisions of the government
• The study of international trade and finance

If a business continues to invest in a project despite initial investments not yielding the expected returns, it may be falling prey to:

• The law of diminishing returns
• The principle of rational choice
• The concept of sunk costs
• The law of supply

Netflix offers several subscription plans with varying features like the number of screens and HD availability. What do these different subscription plans represent for consumers?

• Opportunity set
• Budget constraint
• Law of diminishing marginal utility
• Sunk costs

Refer to Table 19
How does the quantity supplied of rental units change with the implementation of a price ceiling?

• Increases by 100 units

• Decreases by 100 units

• Stays the same

• Changes can't be determined

Refer to Table 13
How does the quantity demanded of Good A change when the price of a complement good, Good B, increases from $5 to $10?

• Increases by 10 units

• Decreases by 10 units

• Stays the same

• Changes can't be determined

In the context of labor markets, what is the "price" commonly referred to as?

• Income
• Wage
• Salary
• Revenue

In labor markets, are firms typically demanders or suppliers?

• Demanders
• Suppliers
• Both demanders and suppliers
• Neither demanders nor suppliers

Suppose you could buy shoes one at a time, rather than in pairs. The cross-price elasticity of demand between left shoes and right shoes would be:

• Perfectly elastic.
• Perfectly inelastic.
• Positive.
• Negative.

In a market with perfectly inelastic demand and perfectly elastic supply, who bears the burden of a tax?

• Entirely consumers.
• Entirely producers.
• Equally split between consumers and producers.
• Neither consumers nor producers.