# Economics Exam 2

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1.
1 point
if TFC is $2,000 and AVC is$10, a firm producing 1000 units of its product has total costs of _____.
2.
1 point
An externality is
3.
1 point
Assuming that the discount rate is equal to 4%, what is the present value of $500,000 to be received two years from today? 4. 1 point The difference between "voting" in the market system and voting in the political system is primarily that: 5. 1 point Joe runs a restaurant. He pays his employees$200,000 per year. His ingredients cost him $50,000 per year. Prior to running his restaurant, Joe was a lawyer earning$150,000 per year. What would economists say is Joe's economic cost of running a restaurant?
6.
1 point
Assuming a discount rate equal to 4%, what is the present value of $300 to be received two years from today? 7. 1 point Which of the following is TRUE about the short run? 8. 1 point Which of the following is a benefit of the free market price system? 9. 1 point Which of the following is easiest to start? 10. 1 point Accounting profit can be calculated as 11. 1 point If marginal utility from consuming a good or service is zero, total utility is 12. 1 point The smaller the size of a county/city/village, the greater is the percentage of the budget spent, on average, on the following budget line item: 13. 1 point If a person goes to college to get an academic degree so that she is able to put her degree initials on her business card later in life and feel accomplished, we would say that this pride feeling is ______ of the higher education and academic degree. 14. 1 point What is your economics professor name? 15. 1 point You deposit$5,000 in a high-yield savings account. The annual interest rate you earn is 5%. Assuming monthly compounding, you will have approximately $______ after three years 16. 1 point The rational ignorance effect primarily refers to 17. 1 point Which of the following would be a variable cost to an automobile manufacturing firm? 18. 1 point Which of the following is an example of something that economists would consider a cost but accountants would not? 19. 1 point If a firm does not produce any output, it's: 20. 1 point When price elasticity of demand is 1.25, consumers are 21. 1 point The addition to total cost that results from employing one additional unit of a resource is called 22. 1 point Suppose that in a month the per pound of Raspberries increase from$3.00 to \$3.75. At the same time, the quantity of Raspberries decreases from 200 to 180 units. The price elasticity of demand is
23.
1 point
Which of the following best describes the economic concept of a "free rider" problem?
24.
1 point
As output increases average variable cost
25.
1 point
The present value of a sum to be received in the future is smaller
26.
1 point
If Susan discount rate is 2%, her perspective between the present and the future is such that she
27.
1 point
Average product is
28.
1 point
A firm achieves constant returns to scale:
29.
1 point
The marginal cost curve will pass upward through the minimum point of the:
30.
1 point
The firm negotiates a new agreement with its workers for lower wages. The ATC curve should be _____ and the AFC curve should be ______ after the agreement goes into effect.
31.
1 point
Compound interest is
32.
1 point
A third party effect from an externality from a free to the public classic car show is more likely to accuse to
33.
1 point
If marginal utility from consuming a good or service is negative, total utility is
34.
1 point
The principal agent problem as discussed in class is primarily about
35.
1 point
An example of a public good is
36.
1 point
If MU(1)/P(1) > MU(2)/P(2), the consumer can equally the marginal utilities per dollar by
37.
1 point
The process of "rent seeking" is socially wasteful because
38.
1 point
In the long run, the firm's total cost equals:
39.
1 point
How is utility defined as?
40.
1 point
A stock is
41.
1 point
If two units of a good provide 7 utils and the marginal utility of the third unit of the good is 2 utils, what is the total utility from consuming three units of the good?
42.
1 point
The net present value and benefit-cost ratio measures
43.
1 point
When a firms MC increases quickly as it expands output due to a price rise for the goods it sells, then that firm is
44.
1 point
Implicit cost could be equated to
45.
1 point
When does a firms average variable cost exceed the average total cost?
46.
1 point
John has eaten another potato chip and his total utility did not change. This means that John's marginal utility for the additional potato chip is
47.
1 point
A club good is a good that is
48.
1 point
Sunk cost
49.
1 point
We utilize discounting in order to obtain the present value of a future amount of money
50.
1 point
The greatest advantage of a corporation is