1-50 Eco

1.Which of the following describe characteristics of a monopoly? (i) The firm is the only seller c The firm's product does not have close substitutes. (iii) The firm make a large economic prof located in a small geographic market.

• A. (i) and (ii) only
  

• B. (i) and (iii) only
  

• C. (i), (ii), and (iii) only
  

• D. (i), (ii), (iii), and (iv)
  

3.Which of the following statements is correct?

• A. Just as the theory of the competitive firm provides a more complete understanding of sup consumer choice provides a more complete understanding of demand.
  

• B. Just as the theory of the competitive firm provides a more complete understanding of sup consumer choice provides a more complete understanding of profits.
  
  

• C. Just as the theory of the competitive firm provides a more complete understanding of sup
  consumer choice provides a more complete understanding of production possibility frontiers.
  

• 
  D. Just as the theory of the competitive firm provides a more complete understanding of sup consumer choice provides a more complete understanding of wages.

  
  

2.The marginal product of any factor of production depends on

• A. the quantity of the factor used
  

• B. the price of the final good
  

• C. the demand for the final good
  

• D. All of the above are correct
  

4.When firms are price takers, it means that if a firm raises its price,

• A. buyers will buy elsewhere
  

• B. buyers will pay the higher price in the short term
  

• C. competitors will also raise their prices
  

• D. firms in the sector will use their market power
  

5.Which of the following statements is not correct about competitive market?

• A. firms will be operating at their efficient scale in a long run
  

• B. the number of firms may be fixed in a short run
  

• C. the number of firms can adjust to changing market conditions in a long run
  

• D. firms will be operating at a level of output where price equals AVC in a short run
  

6.According to the neoclassical theory of distribution, the wages paid to workers

• A. reflect the market prices of the goods those workers produce
  

• B. reflect the degree of market power held by the firms that pay those wages
  

• C. fail to reflect those workers' opportunity costs of leisure
  

• D. are unrelated to the forces of supply and demand
  

7.New firms may enter a monopolistically competitive market when price exceeds

• A. MR
  

• B. AR
  

• C. MC
  

• D. ATC
  

8.Gas stove and gas are complements. If the price of gas increases, consumer surplus in the

• A. decreases.
  

• B. is unchanged.
  

• C. increases.
  

• D. may increase, decrease, or remain unchanged.
  

9.Hotels in Bùi Viện (Ho Chi Minh City) used to experience an average vacancy rate of about average night, 80% of the hotel rooms are full). This kind of excess capacity is of what kind

• A. monopoly
  

• 
  B. perfect competition
  

• C. monopolistic competition
  

• 
  D. oligopoly
  

10.Suppose the government designates certain areas within a community to be "wetlands," mal build on the land. What happens to land not classified as "wetlands" within the community?
The price of non-wetland land will rise.The marginal product of non-wetland land will fall.
(iii) The marginal product of non-wetland land will rise.

• 
  A. (i) and (ii) only
  

• 
  B. (ii) only
  

• 
  C. (i) and (iii) only
  

• D. (iii) only