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01:220:102 Study Guide - Midterm Guide: Autarky, North American Free Trade Agreement, OligopolyExam

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143 Multiple choice questions
1. time available for purposes other than earning money to buy marketed goods.
A. Leisure
B. Utility
C. Wage disparities in practice
D. The spreading effect
2. information that some people have but others do not.
A. production function
B. Average variable cost
C. Average fixed cost
D. Private information
3. producing a given quantity of output is the sum of the fixed cost and the variable cost of producing that quantity of output.
TC = FC + VC
A. Physical capital
B. total cost
C. Pooling
D. total product curve
4. the change in utility from consuming an additional unit. A.
Offshore outsourcing:
B. marginal product of an input
C. Marginal utility (MU)
D. poverty threshold
5. New industries need a temporary period of protection to develop.
A. Infant industry
B. Nonrival
C. A variable input
D. The long run
6. Profit is maximized by producing the quantity of output at which the marginal revenue of the last unit produced is equal to its marginal cost.
A. the value of the marginal product of labor (VMPL).
B. Nonexcludable
C. Optimal output rule
D. The long run
01:220:102:04 Practice Test

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7. an input whose quantity is fixed for a period and cannot be varied.
A. A price effect
B. A fixed input
C. Factor intensity
D. A variable input
8. variable cost per unit of output produced
ATC = VC/Q A. poverty
B. An inferior good:
C. Average variable cost
D. Social Security
9. deterred many would-be new generators
A. Large up-front fixed costs
B. Average fixed cost
C. Wage disparities in practice
D. Free entry and exit
10. the output of the next worker × the product's price: VMPL = P × MPL.
A. Competition among sellers
B. Wage disparities in practice
C. Value of the marginal product D. Marginal utility (MU)
11. treaties in which a country promises to reduce import tariffs in return for a promise by the other country to do the same.
A. WTO (World Trade Organization)
B. long-run average total cost curve
C. production function
D. International trade agreements
12. change in total revenue generated by an additional unit of output.
For price-taking firms, MR is simply the good's market price.
A. Marginal revenue
B. marginal product of an input
C. A price effect
D. Total revenue
13. efforts undertaken by the government to prevent oligopolistic industries from becoming or behaving like monopolies.
A. Adverse selection
B. Antitrust policies
C. Marginal revenue
D. A price effect

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14. investing in several things so that the possible losses are independent events.
A. Diversification
B. poverty threshold
C. Adverse selection
D. excess capacity
15. their actions have no effect on price.
A. Market power
B. Production C. Private
D. price- takers.
16. Changes in the prices of related goods or services
Changes in income
Changes in tastes
Changes in expectations
Changes in the number of consumers
A. A dominant strategy
B. total product curve
C. International trade agreements
D. Important demand shifters
17. the quantity that producers are willing and able to sell at a particular price.
A. quantity supplied
B. poverty threshold
C. Factor intensity
D. Factor abundance:
18. uncertainty about future outcomes.
A. Risk
B. elastic C.
Market power
D. financial risk.
19. total cost per unit of output produced
A. Deregulation (away from government-regulated rates)
B. Average variable cost
C. Policies that limit imports trade protection/protection.
D. Average total cost (often referred to simply as average cost)
20. When collusion breaks down and prices collapse
A. price leadership
B. A price effect
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