Econ Final

it will produce more and charge a lower price

it will produce less and charge a lower price

it will produce more and charge a higher price

none of these

it will produce less and charge a higher price

none of these

if barriers to entry were low

if the monopolist could capture economies of scale that were large compared to the market size

if the monopolist was a "good guy"

if barriers to entry were high

outside its production possibilities frontier

the maximum amount of necessities and minimum amount of luxuries

inside its production possibilities frontier

on its production possibilities frontier

About in the middle

Higher than Germany but lower than France

The highest

The lowest of the listed countries

air and water are often not priced

air and water have no value to society

a and b

managers are profit maximizers

a and d

Marginal Private Cost > Marginal Social Cost

None of these

Price > Marginal Utility

Marginal Private Cost > Price

Marginal Social Cost > Price

its supply curve us the sum of the average variable cost curves of all the factories

none of these

its supply curve is the sum of the average total cost curves of all the factories

its supply curve is the sum of the marginal cost curves of all the factories

a monopolist does not have a supply curve

2

1

20

1/2

Perfectly inelastic

increase production

leave production constant

One cannot tell without knowing the price

none of these

decrease production

ii not i

i not ii

i and ii

neither i nor ii

none of these

break the edifice complex by the turn of the century

raise global temperatures

lead to the next ice age

pollute the ocean

It is because China is producing everything very cheaply and the US industries can no longer compete with China, which causes closing down of factories

It is probably due to the closing down of factories in the US as a result if severe economic recession in 2007

It could be due to the fact that technology in developed countries like the US allows high-productivity with less workers

It is because people are less educated in 2009 than in 1967, so that they is no more labor skilled enough to find jobs in industries.

markets set price to high when the externality is beneficial

markets set price to low when the externality is beneficial

markets set price to high when externality is detrimental

only b and c

none of these

The earning you would have got from working

The joy you would have probably got from dating with your significant other

The fun you would have had from going to a movie with friends.

The cost of driving to canyons for trekking

Increase wheat consumption, thus lowering MU to the level at which MU=P

Reduce wheat consumption, thus raising P to the level at which MU=P

none of these

increase wheat consumption, thus raising P to the level at which MU=P

Reduce wheat consumption, thus raising MU to the level at which MU=P

total revenue from R&D is maximized

marginal revenue from R&D is maximized

marginal cost of R&D is minimized

marginal expected revenue from R&D is equal to its marginal cost

marginal revenue from R&D is greater than its marginal cost

Consumer incomes

Consumer preferences

Price

Population

has led to faster long run growth compared to administrative systems

has led to less inequality compared to administrative systems

leads to less innovation compared to administrative systems

none of these

leads to slower growth in the long run compared to administrative systems

most economists cannot agree on anything

none of these

Most economists would recommend higher prices to ration the services at that time

Most economists would recommend setting prices the same at all times

most economists would recommend lowering prices then to avoid disrupting peoples' schedules

an upward shift of the MC and AC curves which will lower output and raise the price of the product

a downward shift of the MC and AC curves which will lower output and raise the price of the product

a downward shift of the MC and AC curves which will raise output and lower the price of the product

a downward shift of the MC and AC curves will leave unchanged the output and price of the product

an upward shift of the MC and AC curves which will raise output and lower the price of the product

Has been accelerating steadily since Ronald Reagan was president

Has been steadily falling since 1870

Has fluctuated with many booms and busts

Has been steady year after year since 1960

that we could use taxes and transfers to promote equality and then let the price system work to satisfy preferences

All of these

favors the rich

the price system rations goods tot hose willing and able to pay

that we could fix prices on basic necessities but this would distort the price system since necessities are hard to define for everyone

MC=MRP

MC=MFC

MC=AVC

none of these

MC=MU

that private MC=P=private MU

that private MC+social Mc=P

that P=private MB+social MB

none of the above

only b and c

price and quantity both rise

Price falls and quantity rises

Price rises and quantity falls

Price and quantity both fall

It is the accumulation of policies implemented by governments in order to regulate and stabilize their economies.

It is the way that economics is taught in colleges and universities.

It is the system that economies operate and it does not differ from country to country or from economist to economist.

It is the way of understanding economies, explaining the reasons and consequences of economic events. There are several different economic theories as there are several distinct textbooks for this course.

limited wants and abundant resources

limited resources and unlimited wants

limited production capabilities and an unlimited quantity of economic resources

limited resources and unlimited production capabilities

is only done by large oligopolies

are only product innovations

may be either process innovations or product innovations

are only process innovations

is only done by small start up firms

Assumptions are useful in simplifying many economic events, such as the complicated human behavior, so as to make them more understandable and easy to work with. Therefore, it is very crucial to make as many assumptions as possible for understanding the economy.

Because economics is an abstract science like mathematics, and assumptions help us to make economies more real and easy to understand

Assumptions increase our ability to understand economic events by eliminating unnecessary details and focusing on the relevant area of subject. However, too many assumptions could lead to a high degree of abstraction and prevent us from seeing some important points.

Without assumptions, economics would cease to be a science.

Interest

Wages

Government services (taxes)

Profits

all of these can be barriers to entry

patents

high fixed costs

advertising

scale economies

additional passengers are needed to balance the load

such passengers add more to profits than those with reserved seats

It can never profit by doing so- only reduce its losses

additional passengers add little to fixed costs

the marginal cost of additional passengers is very small.

Policies that promote the highest rate of economic growth unambiguously improve the distribution of income

Policies to increase equality may reduce output

There is no trade-off between the size of the economic pie and how the pie is divided.

Incentives for work and savings have almost no impact on people's behavior

all of these

suffer periodic business fluctuations

distribute income unequally

do not readily provide public goods

do not deal well with external diseconomies

An improvement in technology

An increase in the commodity's price

A decrease in the cost of materials

A reduction in factor input prices

is done in Japan

is done in the US, Japan, and Western Europe

is done in the US

is never done in China or India

is done in Western Europe

none of these

all of these

compete through advertising

seldom compete on price

through innvoation

all of these

prices rise to attract workers to this area in which productivity improvements lag the manufacturing sector

none of these

prices rise because of rent seeking in a non competitive sector

prices rise because of the rapid rate of productivity improvements in this area

hiring more security guards to patrol for illegal parkers

charging the same parking fees during all hours of the school day

raising parking fees during the peak hours to encourage some students to schedule classes during other hours when parking fees are lower.

lowering the park fees during those hours to compensate students for the longer search time

none of these

Stores' inventories will decrease as consumers buy more skateboards than skateboards companies produce

Skateboard stores and companies will reduce prices in order to increase sales, leading to a lower, equilibrium price.

Equilibrium will be re-established at the original price as the supply curve shifts to the right

The demand curve for skateboards will shift left in response to higher prices.

The long-run growth rate is higher in that economy

The economy can consume outside its production possibilities frontier

The unemployment rate us quite low in that economy

The private enterprise is relatively more developed in that economy

To build and operate public hospitals and schools

To provide it's citizens with convenient public transportation

To collect taxes

To regulate business, in order to prevent disorder in the free-markets.

only before it is distributed to owners

immediately after it is deposited in the bank

Never, corporate income is exempt from taxation

only after it is distributed to owners

both before and after it is distributed to owners

marginal utility curve

average utility curve

total revenue curve

average revenue curve

total utility curve

unemployed resources are called back to work

there is a technological advance

increased drug use decreases the skills of the labor force

there is an increase in the opportunity cost of a good

growth of desertification

increasing use of glass in construction

none of these

decline in carbon dioxide in the atmosphere

burning of fossil fuels

is depletable

not available

none of these

not excludable

not sold in free markets

inefficiency

unemployed resources

that existing resources can produce at a higher level of output

all the above