WorksheetsCoronaQuiz 9
Total questions: 20
Worksheet time: 5hrs 0mins
If an effective rent ceiling is eliminated, which of the following is most likely to occur?
An increase in the demand for housing, resulting in a decrease in the quantity of housing supplied.
An increase in rents, resulting in an increase in the quantity of housing supplied.
An increase in the demand for housing, resulting in the quantity of housing demanded.
A decrease in rents, resulting in an increase in the quantity of housing supplied.
The profit-maximizing combination of output and price for a single-price monopoly is:
Q1 and P1
Q1 and P2
Q2 and P3
Q3 and P2
If the monopolist could engage in perfect price discrimination, the monopolist's total output and the price charged for the last unit of output sold would be:
Q1 and P1
Q1 and P2
Q1 and P4
Q2 and P3
A firm produces 400 books and sells each book for $15. If the explicit cost of producing the books is $4,500 and the implicit cost is $1,000, the firms economic profit is:
$0
$500
$1,000
$5,000
In which of the following cases would a firm's total revenue increase?
Price increases and demand is elastic.
Price decreases and supply is inelastic
Price decreases and demand is elastic
Price decreases and supply is elastic
A firm is producing 100 units of output at a total cost of $400. The firm's average variable cost is $3 per unit. What is the firm's total fixed cost?
$1
$50
$100
$300
A profit-maximizing firm will shut down in the short run any time the firm's total revenue is less than its:
total cost
fixed cost
total variable cost
explicit cost
The table above shows the short-run output for a perfectly competitive firm. If the price of the product is $10, what is the marginal revenue product of the third worker hired?
$24
$27
$40
$240
Which of the following will cause the demand curve for good X to shift to the right?
An increase in the price of good Z, a compliment to good X.
An increase in the price of good Y, a substitute for good X.
An increase in the consumer's income, if good X is an inferior good.
A decrease in the price of good X.
If a 10 percent increase in the price of a good leads to a 25 percent decrease in the quantity demanded of the good, demand is
relatively inelastic
relatively elastic
unit elastic
perfectly elastic
Which of the following explains why a production possibilities curve is often represented as a concave (bowed out) from the origin?
The law of demand
The law of supply
Constant returns to scale
Increasing opportunity costs
In which of the following market structures do firms recognize their mutual interdependence?
Oligopoly
Monopoly
Perfect competition
Monopolistic Competition
According to the diagram, what is the dollar amount of the unit tax?
$0.00
$0.45
$0.55
$1.00
How many workers would the coal company want to hire if the price of coal were competitively priced at $5 per ton and the wage rate were $40 per day?
5
4
3
2
The marginal physical product of the second worker is
19
22
25
44
Most economists argue that a monopoly is inefficient because it
has no incentive to minimize costs
produces too little output and sets a price above marginal cost
earns too much profit by charging consumers any price it wants
produces too much output and thus wastes scares resources
If a firm's production process exhibits economies of scale, which of the following will occur when the firm's output increases?
Its short-run average total costs will rise.
Its long-run average total costs will rise.
Its long-run average total costs will fall.
Its short-run total costs will fall
Assume both Italy and Greece produce only two goods: wine and olive oil. If Italy holds a comparative advantage in the production of wine, then which of the following statements is NOT true?
Italy must hold an absolute advantage in the production of wine.
Greece holds a comparative advantage in the production of olive oil.
If trade is open between them, these countries have an incentive to trade.
Greece's opportunity cost of producing one additional unit of olive oil is lower than Italy's
Promoters of a rock group know that if they charged $8 a ticket, 400 people would buy tickets for a concert, and if they charged $4 a ticket, 800 people would buy tickets. Over this price range, the demand for the concert tickets for the rock group is
elastic
inelastic
unit elastic
perfectly inelastic
Which of the following would most likely result in a decrease in the equilibrium price of oranges?
The weather during the orange-growing season is not as good as it was last year.
The price of apples, a substitute for oranges, is higher this year than last year.
New studies suggest that oranges contain traces of cancer-causing substances due to pesticide residue.
A tree-killing fungus spreads through orange orchards across the country.
