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4-The three fundamental economic questions of what, how, and for whom:
a-exist because of scarcity.
b-are much more serious in a socialist system.
c-are not serious in a capitalistic system.
d-are not relevant in the industrialized world of today.
5-When the market price is established where demand and supply curves intersect:
a-consumer buying tends to exceed the quantity producers supply.
b-the quantity consumers demand generally fall short of the quantity producers supply.
c-the quantity demanded and the quantity supplied are equal.
d-all of the above will result.
8-The costs incurred by a firm in its use of variable factors of production are:
9-An example of capital is:
b-a factory building.
c-money in a checking account.
d-the existing state of technology.
15-In a perfectly competitive labor market, each firm can hire:
a- only a fixed amount of labor at the going wage.
b-all the labor it wants, but only by outbidding its competitors.
c- larger quantities of labor at rising wages per worker.
d-larger quantities of labor at going market wages per worker.
25-The fact that a Giffen good might exist:
a-negates the law of demand.
b-does not negate the law of demand.
c-meas that the law of demand is fine in theory but not valid in the real world.
d-negates the law of increasing cost.
26-When supply and demand are in equilibrium, the price of a good is:
a-greater than the marginal utility of the good.
b-equal to the marginal utility of the good.
c-less than the marginal utility of the good.
d-not necessarily any of the above.
30-A monopolist is a:
38-In perfectly competitive markets, if the price is _______ , the firm will _______ .
a-greater than ATC; make an economic profit
b-less than the minimum AVC; shut down
c-greater than the minimum AVC but less than ATC; continue to produce and incur a loss.
d-all of the above are true.
40- variable that responds to a change in another variable is called a(n) _______ variable.
d-all of the above are true
42-In dealing with utility, we assume that the ability of consumers to purchase goods and services is:
44-The scientific method is more difficult for economists than, say, chemists, because:
a-controlled laboratory conditions are more problematic in economics.
b-it is difficult to hold other factors that may affect the variables being studied constant in economics.
c-economic conditions may change quickly and unexpectedly.
d-all of the above.
49-A determinant of the demand for a factor of production is the:
a-price of the factor.
b-marginal cost of the factor.
c-productivity of the factor.
d-quantity of the factor supplied