WorksheetsCoronaQuiz 5
Total questions: 20
Worksheet time: 5hrs 0mins
Between points A and B the marginal product of labor is:
increasing.
decreasing.
infinite.
zero
Using the information in the table, if the price of a ticket to see Phantom of the Opera is $50, then Robert's consumer surplus is:
$10
$50
$60
$110
As units of labor are hired between quantities L1 and L2, ________ is ________ and ________ is ________.
total product; rising; marginal product; positive
total product; rising; average product; negative
marginal product; zero; total product; falling
total product; rising; marginal product; negative
When hiring units of labor between zero and L1 units of labor, which of the following statements is true?
The marginal product of labor is increasing.
The marginal product of labor is decreasing.
Total product is increasing at a constant rate.
Total product is increasing at a diminishing rate
After hiring L2 units of labor and producing at point B on the total product curve, hiring more units of labor would result in which of the following statements being true?
Total product is negative.
Average product is rising.
The marginal product of labor is rising.
The marginal product of labor is negative.
Hiring L2 units of labor results in total product attaining a ________and the marginal product of labor ________.
maximum; being equal to zero
minimum; being equal to zero
maximum; being positive
minimum; falling, but still being positive
If after hiring L2 units of labor, the firm hires more labor, total product will ________ because the marginal product of labor is ________.
decrease; positive
increase; positive
decrease; negative
ncrease; negative
If the box-office price of a ticket to see Phantom of the Opera is $50, and there is no other market for tickets, then total consumer surplus for the five students is:
$100
$200
$230
$240
If the box-office price of a ticket to see Phantom of the Opera is $130, and there is no other market for tickets, the total consumer surplus for the five students is:
$0
$20
$125
$130
A perfectly competitive firm will incur an economic loss but will continue producing the profit-maximizing quantity of output in the short run if price is:
less than marginal cost.
less than average variable cost.
greater than average variable cost and less than average total cost.
greater than average fixed cost.
The demand curve for running shoes has shifted to the right. What could have caused it?
a decrease in the price of running shoes
an increase in the price of running shoes
a medical report that concludes that running causes arthritis in the joints.
an increase in the income of buyers of running shoes if running shoes are normal goods.
Gasoline, a derivative of oil, is a large part of transportation costs for many producers. If the price of oil increases at the same time that incomes fall for many consumers, one would expect that the equilibrium price of many normal goods would ________, while their equilibrium quantities would ________.
rise; rise
fall; rise
fall; fall, rise, or stay the same
fall, rise, or stay the same; fall
If the price elasticity of supply is less than 1, then supply is:
price-elastic.
price-inelastic.
price unit-elastic.
supply is income-inelastic.
Suppose that the average cost of a doctor's visit is $100. If the government imposes a price ceiling of $50 on the cost of a doctor's visit, there will be:
an excess supply of doctor's visits.
an excess demand for doctor's visits.
no change in the number of doctor's visits.
an increase in the equilibrium number of doctor's visits.
If a firm produces 10 units of output and incurs $30 in average variable cost and $35 in average total cost, total fixed cost is:
$3
$35
$50
$350
The change in total cost resulting from a one-unit change in quantity is:
marginal cost.
total cost.
marginal product.
average total cost.
A natural monopoly exists when:
a few firms collude to make one large firm.
economies of scale provide large cost advantages to having one firm produce the industry's output.
firms naturally maximize profit regardless of market structure.
government creates a natural barrier to entry for other firms.
A monopoly is likely to ________ units of output and ________ price than a perfectly competitive firm.
produce fewer; charge a higher
produce more; charge a lower
produce more; charge a higher
produce fewer; charge a lower
The market structure characterized by a few interdependent firms and in which there are barriers to entry is called:
Monopoly
Perfect Competition
Monopolistic Competition
Oligopoly
Efficient production exists when the economy is:
moving beyond its production possibility curve.
operating outside its production possibility curve.
operating underneath its production possibility curve.
operating on its production possibility curve.
