Microeconomics Final example #79800

Which of the following exemplifies a microeconomic question?

Which question is an example of a macroeconomic question?

Which question is an illustration of a microeconomic question?

Macroeconomics approaches the study from the viewpoint of

The problems of inflation and unemployment are

Microeconomics is concerned with

One basic difference between "land" and "capital" is that land is

The four factors of production (or types of resources) are

A recurring theme in economics is that people

As a consequence of the problem of scarcity

When a state government chooses to build more roads, the resources used are no longer available for public education programs. This dilemma illustrates the concept of

The scarcity problem

Which one of the following expressions best states the idea of opportunity cost?

Which of the following most closely relates to the idea of opportunity costs?

One major part of the opportunity costs of one's decision to go to college after high school graduation is the

Which of the following is the best synonym for "marginal" in economics?

Mia wants to buy a book. The economic perspective suggests that Mia will buy the book if the

From an economic perspective, when a consumer decides to buy more life insurance, the customer has most likely concluded that the marginal

From an economic perspective, when consumers leave a fast food restaurant because the lines to be served are too long, they have concluded that the

Marginal cost can be defined as the change in

The combination of zero pounds of corn and eighty pounds of green beans is

If an individual has a comparative advantage in the production of a good, this individual has the

An individual should specialize in the production of a good for which he/she has a

Specialization allows a society to produce _______ goods

When economists describe "a market," they mean

All else held constant, the law of demand suggests that as

If product Y is an inferior good, a decrease in consumer incomes will

All else being equal, if the law of supply states that as the price of a good, service, or resource rises

An "increase in the quantity supplied" suggests a

Which of the following would cause a rightward shift of the supply curve for cell-phone services?

Which of the following will cause a decrease in market equilibrium price and an increase in equilibrium quantity?

A decrease in demand and an increase in supply will

An increase in the demand for corn is more than offset by an increase in its supply. As a result the equilibrium price will _____ and the equilibrium quantity will _____.

The difference between the maximum price a consumer is willing to pay for a product and the actual price the consumer pays is called

Consumer surplus arises in a market because

The difference between the actual price that a producer receives and the minimum acceptable price the producer is willing to accept is called the producer

Graphically, producer surplus is measured as the area

When a competitive market maximizes economic surplus, it implies that the

When the marginal benefit of an output exceeds the marginal cost

Deadweight losses occur when the quantity of an output produced is

Allocative efficiency occurs at the output where

Producer surplus:

If the equilibrium wage for fast-food restaurants is $8 and the government enforces a minimum wage of $15

The basic formula for the price elasticity of demand is

When the price of a product is increased 10%, the quantity demanded decreased 15%. The price elasticity of demand for this product is

The price elasticity of demand for a popular sporting event is -2. If the price of a ticket to this event increases by 10%, the quantity of tickets demanded will decrease by

When interpreting the Ed value as either elastic or inelastic, we look at the

If the demand for product X is inelastic, a 4% increase in the price of X will _____ the quantity demanded of X by _____ than 4%.

The price elasticity of demand of a linear demand curve is

Total revenue decreases as the price of a good increases, if the demand for the good is

In which instances will total revenues decline?

you are the sales manager for a software company and have been informed that the absolute value of the price elasticity of demand for your most popular software is less than 1. To increase total revenues from that product, you should

Which is NOT a characteristic of a product with relatively inelastic demand?

We would expect the cross-price elasticity of demand between Pepsi and Coke to be

A negative income elasticity of demand indicates that the product

Assume that a 3% increase in income across the economy produces a 1% decrease in the quantity of fast food demanded. The income elasticity of demand for fast food is ______, and therefore fast food is _____

When producers do not have to pay the full cost of producing a product, they tend to

In a situation where an externality occurs, the "third party" refers to those who

External benefits accruing to those

A positive externality or spillover benefit (additional social benefit) occurs when

In a free-market economy, a product that entails a positive externality (additional social benefit) will be

Which of the following is an example of a negative externality (additional social cost)?

Which of the following is an example of a positive externality (additional social benefit)?

If there are external benefits associated with the consumption of a good or service

If the consumption of a product or service involves external benefits, then the government can improve efficiency in the market by

Where there are spillover (or external) benefits from having a particular product in a society, the government can make the quantity of the product approach the socially optimal level by doing the following except

It is the custom for paper mills located alongside the Layzee River to discharge waste products into the river. As a result, operators of the hydroelectric power-generating plants downstream along the river find that they must clean up the river's water before it flows through their equipment. Based on the preceding information, which of the following policies would be most appropriate for dealing with this problem?

What are the two characteristics that differentiate private goods from public goods?

A public good

Unlike a private good, a public good

Which of the following is an example if a public good?

The market system does not produce public goods because

The satisfaction or happiness one gets from consuming a good or service is called

Which of the following defines marginal utility?

Which of the following statements about marginal utility is correct?

Marginal utility can be

After eating four slices of pizza, you are offered a fifth slice for free. You turn down the fifth slice. Your refusal indicates that the

When diminishing marginal utility starts happening as a person consumes more and more of a given good

Which situation is consistent with the law of diminishing marginal utility?

Which of the following is NOT an assumption of the decision-making process followed by consumers to maximize utility?

The decision-making process followed by consumers to maximize utility assumes that

A consumer with a limited income will maximize utility when each good is purchased in amounts such that the

Oscar makes a purchase of an existing product (X) such that the marginal utility of the last unit he consumes is 10 utils and the price is $5. He also tries a new product (Y) and the marginal utility of the last unit he consumes is 8 utils and the price is $1. The equal marginal principle suggests that Oscar should

Assume that Alex would like to purchase a combination of product A and product B such that, after he is done spending his limited income, the MUa/Pa= 8 and MUb/Pb=4. To maximize utility without spending more money, Alex should

Assume that product Alph and product Beta are both priced at $1 per unit and that Ellie has $20 to spend on Alpha and Beta. She buys 8 units of Alpha and 12 units of Beta. The marginal utilities of the last unit of Alpha and Beta that she purchases are 40 utils and 20 utils, respectively. This indicates that

Assume that Clara purchases a combination of products Y and Z such that, after she is done spending her limited income, MUy/Py=25 and MUz/Pz=15. Based on the equal marginal principle, Clara

Sharon purchases two products, X and Y, with a given fixed budget. The marginal utility she receives from the last unit of X she consumes is 60 utils, and the marginal utility she receives from the last unit of Y she consumes is 30 utils. The price of X is $2 and the price of Y is $1. Based on the equal marginal principle, these data suggest that Sharon

Assume MUc and MUd represent the marginal utilities that Alyssa receives from the consumption of products C and D, respectively. Given a fixed budget, Alyssa could increase her total utility by spending more on C and less on D if initially

Which of the following would be an implicit cost for a firm?

Which of the following is most likely to be an implicit cost for Company X?

To an economist, the economic costs associated with the use of resources include

Economic profit is

The main difference between the short run and the long run is that

Marginal product of labor refers to the

According to the law of diminishing marginal returns

Variable costs are

Fixed costs are those costs that are

Assume that you are the owner of a small bakery in your home town. Which of the following would be a variable cost of production in the short run?

At any level of output

Average fixed cost

Marginal cost can be defined as the change in...

The reason the marginal cost curve eventually increases as output increases for the typical firm is because of

Answer the next question on the basis of the following information. TFC = Total Fixed Cost MC = Marginal Cost TVC = Total Variable Cost Q = Quantity of Output P = Product Price Select the marginal cost.

If the short-run average variable cost of production for a firm is decreasing, then as it follows that

Which idea is inconsistent with perfect competition?

Price is taken to be a "given" by an individual firm selling in a perfectly competitive market because

Clara produces and sells tomatoes in a perfectly competitive market. This implies that Clara's marginal revenue generated from selling an additional unit of tomatoes is always equal to

If a firm operating in a perfectly competitive industry is confronted with an equilibrium market price of $5, its marginal revenue

A perfectly competitive firm trying to maximize profits in the short run will expand output

A perfectly competitive firm's output is currently such that its marginal revenue is $5 and marginal cost is $4. Assuming profit maximization, the firm should

A firm sells a product in a perfectly competitive market. The marginal cost of the product at the current output level of 1,000 units is $2.50. The minimum possible average variable cost is $2. The market price of the product is $2.50. To maximize profits, the firm should

A firm sells in a purely competitive market. The marginal cost of the product at the current output level of 800 units is $3.50. The minimum possible average variable cost is $3. The market price of the product is $4. To maximize profits, the firm, should

A firm sells a product in a perfectly competitive market. The marginal cost of the product at the current output level of 500 units is $1.50. The minimum possible average variable cost is $1. The market price of the product is $1.25. To maximize profits, the firm should

T-Shirt Enterprises is operating in a perfectly competitive market. It is producing 3,000 t-shirts and selling the, for $10 each. At this level of output, the average total cost is $10.50 and the average variable cost is $10.20. Based on the data, the firm should

The short-run supply curve for a perfectly competitive firm is the

The short-run supply curve of a perfectly competitive firm is based primarily on its

One defining characteristic of pure monopoly is that the

A pure monopoly may generate economic profits because

The demand curve faced by a non-discriminating pure monopoly is

A pure monopoly can sell 20 toys per day for $8 each. To sell 21 toys per day, the price must be cut to $7. The marginal revenue for the 21st toy is

For a pure monopoly to sell a quantity of 10 units, the price must be $8. Marginal revenue at this output level will be

At the profit-maximizing level of output for a pure monopoly

Suppose that a pure monopoly calculates that at its present output level marginal revenue is $1 and marginal cost is $2. The monopoly could maximize profits or minimize losses by

Many people believe that pure monopolies charge any price the want without affecting sales. Instead, the output level for a profit-maximizing pure monopoly occurs where

Which of the following is a characteristic of a monopolistic competition?

A monopolistically competitive firm's marginal revenue curve

Monopolistic competitive firms are productively inefficient because production occurs where

If monopolistically competitive firms in an industry are making an economic profit, then new firms will enter the industry and the product demand facing existing firms will