Principles of Microeconomics
Early spring 2006 Type
You will discover 30 multiple choice questions and 5 short answer questions on this double-sided exam, thus be careful not to skip any inquiries!
Part We: Multiple Decision (60 points)
Read each question properly and select the best response. Complete the corresponding group on your solution sheet.
If the total output of candles in Nick's Wicks shop increases from twenty per hour to 30 per hour as he hires the second employee, then
a. the little product of the second employee is twenty candles.
m. the minor product of the second staff member is 40 candles.
c. if the value of each candlestick is $2, the limited revenue merchandise (MRP) of the second staff member is 20 dollars. d. in the event the price of every candle can be $2, the marginal revenue product (MRP) of the second worker is $30. End result
(pizzas every hour)
a couple of
Paulette owns a pizza parlor. Her total cost timetable is in the above table. Her marginal expense of producing the fifth pizza is
When organizations in an oligopoly successfully collude and do not cheat on a association agreement, they achieve long-run economic revenue similar to:
a. perfect competition.
c. monopolistic competition.
d. non-colluding oligopolies.
The buying price of a resource using a perfectly inelastic supply,
a. is genuine economic rent.
b. contains only prospect cost and has no economic rent. c. cannot alter.
d. is determined by the supply.
What does monopolistic competition have in common with best competition? a. a large number of firms and flexibility of entry and exit
b. a standardized product
the ability to earn an economic income in the long run
In the long run, existing firms exit a perfectly competitive market each time a. economic earnings are no.
b. economical profits will be greater than absolutely no.
c. regular profits are greater than absolutely no.
d. they will incur an economic loss.
If the selling price elasticity of supply to get a good is 0. five, then
a. an increase in the purchase price boosts the volume supplied by a bigger percentage. n. the supply can be elastic.
c. the percentage enhancements made on the quantity delivered is less than the proportion change in selling price. d. None of the previously mentioned answers are accurate.
If a firm will not produce virtually any output, the
a. total fixed cost must be zero.
b. economical profit should be positive.
c. total variable cost should be zero.
d. total costs must be no.
If all households in a country receive the same income, the nation's Lorenz contour would a. be horizontal.
b. be vertical.
c. be a 45Вє line.
d. run over the horizontal axis until it come to 50 percent of households, and then run vertically up to 100 percent of profits.
10. Economies of level occurs when the common total expense of production ____ as output ____. a. increases, raises
b. decreases, decreases
c. decreases, raises
d. remains constant, improves
Which will of the pursuing explains why flood control is a community good? a. There are external benefits linked to its production. b. The federal government usually produces flood control projects.
c. It is non-exclusive and therefore may not be kept coming from people who tend not to pay.
All of the previously mentioned
12. Other stuff remaining similar, the
a. higher the interest rate, more suitable the quantity of capital demanded. m. lower the interest rate, small the quantity of capital demanded. c. higher the interest rate, the smaller the quantity of capital demanded. deb. interest rate plus the quantity of capital demanded are generally not related. 13. Suppose the equilibrium wage for nurses is $17/hour. Some healthcare professionals receiving this wage are in reality willing to be employed by only $15/hour. This $2 difference is recognized as
a. pure economic lease.
b. differential box economic hire.
c. inframarginal economic lease.
d. consumer surplus....