Goods and services are exchanged in

Answer

Selected Answer:

product markets

Correct Answer:

product markets

Question 2

4 out of 4 points

Theory in economics

Answer

Selected Answer:

involves some simplification of reality

Correct Answer:

involves some simplification of reality

Question 3

4 out of 4 points

In economics, the term "marginal" usually refers to

Answer

Selected Answer:

a small change in an economic variable

Correct Answer:

a small change in an economic variable

Question 4

4 out of 4 points

The opportunity cost of a particular activity

Answer

Selected Answer:

varies from person to person

Correct Answer:

varies from person to person

Question 5

4 out of 4 points

Because of specialization and comparative advantage, most people

Answer

Selected Answer:

consume the products of many other specialists

Correct Answer:

consume the products of many other specialists

Question 6

4 out of 4 points

Just as resources are scarce for the individual,

Answer

Selected Answer:

they are also scarce for the economy as a whole

Correct Answer:

they are also scarce for the economy as a whole

Question 7

4 out of 4 points

A common assumption that economists make about the behavior of elected officials is that they try to

Answer

Selected Answer:

maximize the number of votes they receive in the next election

Correct Answer:

maximize the number of votes they receive in the next election

Question 8

4 out of 4 points

Which category includes the largest number of firms?

Answer

Selected Answer:

sole proprietorship

Correct Answer:

sole proprietorship

Question 9

4 out of 4 points

Which resource generates the largest share of the income in the United States?

Answer

Selected Answer:

labor

Correct Answer:

labor

Question 10

4 out of 4 points

Suppose a market is in equilibrium and then a price floor is established below the equilibrium price. Which of the following will happen?

Answer

Selected Answer:

the market will remain in equilibrium

Correct Answer:

the market will remain in equilibrium

Question 11

4 out of 4 points

If demand for personal computers increases as a result of an increase in income,

Answer

Selected Answer:

personal computers must be a normal good

Correct Answer:

personal computers must be a normal good

Question 12

4 out of 4 points

Which of the following is the best example of substitutes?

Answer

Selected Answer:

hiking boots and athletic shoes

Correct Answer:

hiking boots and athletic shoes

Question 13

4 out of 4 points

Given the availability of California oranges, demand for Florida oranges will

Answer

Selected Answer:

be more elastic than if there were no California oranges

Correct Answer:

be more elastic than if there were no California oranges

Question 14

4 out of 4 points

A perfectly elastic demand curve is

Answer

Selected Answer:

a horizontal straight line

Correct Answer:

a horizontal straight line

Question 15

4 out of 4 points

For which of the following products is the consumer's demand curve most likely to be vertical?

Answer

Selected Answer:

insulin, for a diabetic

Correct Answer:

insulin, for a diabetic

Question 16

4 out of 4 points

Your willingness to pay additional money for time-saving goods depends primarilyon

Answer

Selected Answer:

the opportunity cost of your time

Correct Answer:

the opportunity cost of your time

Question 17

4 out of 4 points

If you buy a good, its expected marginal value to you

Answer

Selected Answer:

may be greater than or equal to but not less than its price

Correct Answer:

may be greater than or equal to but not less than its price

Question 18

4 out of 4 points

Marginal utility is the

Answer

Selected Answer:

additional satisfaction obtained from consuming one more unit of a good

Correct Answer:

additional satisfaction obtained from consuming one more unit of a good

Question 19

4 out of 4 points

A firm's opportunity costs of using resources provided by the firm's owners are called

Answer

Selected Answer:

implicit costs

Correct Answer:

implicit costs

Question 20

0 out of 4 points

An implicit cost is

Answer

Selected Answer:

any cost a firm cannot avoid in the short run

Correct Answer:

an opportunity cost

Question 21

0 out of 4 points

Which of the following would be shown on IBM's accounting statement?

Answer

Selected Answer:

revenue, implicit costs, and accounting profit

Correct Answer:

revenue, explicit costs, and accounting profit

Question 22

4 out of 4 points

Cash payments for steel to be used in production would be an example of

Answer

Selected Answer:

explicit costs

Correct Answer:

explicit costs

Question 23

4 out of 4 points

Total cost is calculated as

Answer

Selected Answer:

fixed cost plus variable cost

Correct Answer:

fixed cost plus variable cost

Question 24

4 out of 4 points

The short-run average variable cost curve

Answer

Selected Answer:

slopes downward at low rates of output, then slopes upward at higher rates of output

Correct Answer:

slopes downward at low rates of output, then slopes upward at higher rates of output

Question 25

4 out of 4 points

Commodity products are

Answer

Selected Answer:

perceived by consumers to be identical

Correct Answer:

perceived by consumers to be identical

Question 26

4 out of 4 points

A perfectly competitive firm in the short run determines its quantity supplied at various prices by using

Answer

Selected Answer:

the portion of its marginal cost curve rising above its average variable cost

Correct Answer:

the portion of its marginal cost curve rising above its average variable cost

Question 27

4 out of 4 points

Productive efficiency occurs in markets when

Answer

Selected Answer:

goods are produced at the lowest possible average total cost

Correct Answer:

goods are produced at the lowest possible average total cost

Question 28

4 out of 4 points

Average revenue minus average total cost equals

Answer

Selected Answer:

economic profit per unit of output

Correct Answer:

economic profit per unit of output

Question 29

4 out of 4 points

Commodity products are

Answer

Selected Answer:

uniform or standardized

Correct Answer:

uniform or standardized

Question 30

4 out of 4 points

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

Answer

Selected Answer:

marginal cost curve, which lies above the average variable cost curve

Correct Answer:

marginal cost curve, which lies above the average variable cost curve

Sunday, November 11, 2012 1:25:50 PM EST