Microeconomic HW1

1.

1 point

To affect the market outcome a price ceiling must

Be set below the price floor.

Be set below the legal price

Be set below the equilibrium price.

Be set below the black market price

2.

1 point

On an upward sloping straight line the slope is which of the following?

Positive and variable

Negative and variable

Negative and constant

Positive and constant

3.

1 point

When the marginal benefit(D) equals the marginal cost(S) of the last until sold in a competitive maket

Total benefit is equal to total cost.

Producer loss is equal to consumer surplus.

An economically efficient level of output is produced

The net benefit of consumers is equal to the net benefit of the government

4.

1 point

On a downward sloping straight line the slope is which of the following?

Positive and constant.

Positive and variable.

Negative and variable.

Negative and constant.

5.

1 point

Economics is the study of scarce resources used to meet unlimited wants.

True

False

6.

1 point

If a country is operating along the PPF it's operating efficiently.

True

False

7.

1 point

Along a downward sloping straight line on the Y axis there is a movement from 12 to 6 and on the X axis there is a movement from 26 to 33. Which of the following is the slope of the line?

6/7

7/6

-7/6

-0.86

8.

1 point

Along an upward sloping straight line on the Y axis there is a movement from 5 to 10 and on the X axis there is a movement from 15 to 20. Which of the following is the slope of the line?

-1.

1

-0.1

0.1

9.

1 point

Economists refer to a market where buying and selling take place at prices that violate government price regulation as

A noncompetitive market

A black market.

An outlaw market

A restricted market

10.

1 point

Along a PPF exists constant opportunity costs.

True

False

11.

1 point

Paul goes to Sportsmart to buy a new tennis racquet. He is willing to pay $200 for a new racquet but buys one on sale for $125. Paul's consumer surplus from the purchase is

$325

$75

$125

$200

12.

1 point

An increase in economic growth is described by which of the following?

A shift to the left in the PPF.

A shift to the right in the PPF.

A shift downward in the PPF.

A shift leftward in the PPF.

13.

1 point

Efficient distribution of goods and services would more likely fall under positive economics.

True

False

14.

1 point

The difference between the lowest price a firm would have been wiling to accept and the price it actually receives from the sale of the product is called

producer surplus

Price differential

profit

Marginal revenue

15.

1 point

What to produce can understood in terms of providing more of one good and more of another at the same time.

True

False

16.

1 point

In demand theory if the income of consumers changes all other things constant which of the following is correct?

There is a change off the demand curve.

There is a shift in the demand curve.

There is a movement along the demand curve.

There is a change along the demand curve.

17.

1 point

In Microeconomics areas covered include unemployment.

True

False

18.

1 point

The difference between the highest price a consumer is willing to pay for a good and the price the consumer actually pays is called

The income effect

Consumer surplus

Producer surplus

Substitution effect.

19.

1 point

When a competitive equilibrium is achieved in a market

The total benefits to consumers are equal to the total benefits to the government.

Economic surplus equals the deadweight loss.

All individuals are worse off than they would be if the price ceiling or price floor were imposed by government.

Consumer and producer surpluses are maximized.

20.

1 point

One of the factors that determines supply is which of the following?

The amount of tastes and preferences

The number of buyers

Income

Factor costs.

21.

1 point

A downward sloping straight line shows which of the following?

A positive relationship between two variables.

A direct relationship between to variables.

An indirect relationship between two variable.

A nonnegative relationship between two variables.

22.

1 point

In order to be binding a price floor

Must coincide with the free market equilibrium price.

Must lie above the market equilibrium price.

Must be high enough for firms to earn a profit.

Must lie below the free market equilibrium price.

23.

1 point

The minimum wage is an example of

A price floor

A subsidy for low-skilled workers.

A black market

A price ceiling

24.

1 point

The PPF embodies the trade-off between current consumption and past consumption.

True

False

25.

1 point

Scarcity is defined as not enough resources to satisfy wants.

True

False

26.

1 point

Who produces what is based on skills and abilities of individuals as well as opportunity costs.

True

False

27.

1 point

Given an upward sloping straight line Alpha 1 and another upward sloping straight line Alpha 2 a change from point c on Alpha 1 to point d on Alpha 2 is described as which of the following?

A shift on the graph.

A shift in the curves.

A movement on the curves.

A movement off the curves.

28.

1 point

In demand theory if the price of a good changes all other things constant which of the following is correct?

There is a movement along the demand curve.

There is a shift in the demand curve.

There is a change in the demand curve.

There is a change off the demand curve.

29.

1 point

In order to achieve economic growth a country must do which of the following?

Operate off the PPF.

Operate along the PPF.

Operate inside the PPF.

Operate outside the PPF.

30.

1 point

In Macroeconomics areas covered include choices and behavior of consumers.

True

False