OC userin Economics·11 Dec 2017Use the figure below to answer the following questions. Price dollars per unit S + fox 0 100 200 300 400 500 Quantity (units Figure 6.3.2 27) Refer to Figure 6.3.2. The amount of the tax per unit is A) $1.00. B) $2.00 C) $0.50. D) $1.50 E) zero.
OC userin Economics·11 Dec 201772) Once the market has adjusted to a new long run equilibrium with the new demand curve, the number of firms will be: A) 10. B) 80. C) 90. D) 100. E) 1000.
OC userin Economics·12 Dec 201739. What is the socially optimal or efficient quantity of Kumqats? (a) 30 Kumquats. (b) 5 Kumquats. (c) 25 Kumquats. (d) 10 Kumquats.
OC userin Economics·12 Dec 201726) The price of a good will tend to fall if A) there is a surplus at the current price. B) the current price is below the equilibrium price. C) the quantity supplied exceeds the quantity demanded at the current price. D) both A and C are true. E) none of the above are true.
OC userin Economics·9 Dec 201710. (Figure: Consumer Surplus II) Look at the figure Consumer Surplus II. If the price of the good is $4, consumer surplus will equal: A) $5. B) $10. C) $20. D) $40.
OC userin Economics·12 Dec 20179. Continuing the problem begun in question 8, the firm in the short run will earn profits of (A) $200 (B) $220 (C) $240 (D) $260 (E) $280 (F) $300 (G) $320 (H) $340 (1) $360 (1) $380
OC userin Economics·9 Dec 201741) A subsidy is a A) tax imposed by the government on imported goods. B) payment made by the government to a producer. C) payment made by a consumer to a producer. D) payment made by foreign governments to domestic farmers. E) tax imposed by the government on a producer.
OC userin Economics·10 Dec 20171) According to the principle of diminishing marginal utility, as consumption of a good increases, total utility A) increases at a decreasing rate. B) decreases and then eventually increases. C) increases at an increasing rate. D) decreases at an increasing rate. E) decreases at a decreasing rate.
OC userin Economics·9 Dec 2017Use the table below to answer the following question. Table 3 The Market for Car-Seat Heaters Price (dollars per heater 40 50 Quantity Demanded Quantity Supplied (heaters per month) (heaters per month) 500 900 300 200 450 350 350 250 400 300 400 300 350 250 450 350 300 200 500 400 250 150 550 950 200 100 600 500 100 35) Refer to Table 3. Suppose a problem develops with car-seat heaters - they malfunction and occasionally cause serious burns. As a result, demand decreases by 100 heaters at each price. Simultaneously, the cost of production rises, and supply decreases by 100 heaters at each price. The new equilibrium price is $ 66 and the new equilibrium quantity is 300 heaters per month. A) 70; 450 B) 60; 300 C) 70; 350 D) 50; 450 E) 50; 350
OC userin Economics·8 Dec 201724. A firm has $100 in explicit costs and sells the resulting output for $125. The normal rate of profit is 10 percent. Which statement is true? A) B) C) D) Economic profits exceed accounting profits. Economic profits are $25. Implicit costs are $10. Implicit costs exceed explicit costs. Normal profits are $15.
OC userin Economics·11 Dec 201761) Suppose that the government institutes a new mandatory public pension plan that forces the household contribute 200 in the present and will pay the household a retirement benefit of 300 in the future. If the household did NO private saving its (Cp, Cf) bundle would be: A) 1000; 300 B ) 800; 0 C) 800; 200 D 800; 300 E) 200; 300
OC userin Economics·8 Dec 20178) The price elasticity of demand equals magnitude of the in the divided by the _in the A) percentage change; quantity demanded; percentage change; quantity supplied B) percentage change; quantity demanded; percentage change; price C) change; price; change; quantity demanded D) change; quantity demanded; change; price E) percentage change; price; percentage change; quantity demanded
OC userin Economics·7 Dec 201718. According to the principle of diminishing marginal utility, as consumption of a good increases, total utility A) decreases and then eventually increases. B) decreases at an increasing rate. decreases at a decreasing rate. increases at an increasing rate. increases at a decreasing rate.
OC userin Economics·9 Dec 201724) If price falls below minimum average variable cost, the best a firm can do is A) stop production and incur a loss equal to total fixed cost. B) increase production and incur a loss equal to total fixed cost. C) stay at the same production level and incur a loss equal to the difference between total cost and total revenue. D) increase production and incur a loss equal to total variable cost. E) stop production and incur a loss equal to total variable cost.
OC userin Economics·7 Dec 2017The overproduction of a good means that A) deadweight loss has been eliminated. the sum of consumer surplus and producer surplus is greater than the sum for an efficient allocation. marginal cost exceeds marginal benefit. marginal benefit exceeds marginal cost. marginal benefit equals marginal cost.