Econ Final

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1.  Scarcity is
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2.  Karen spends $20 to hire a tutor to help her prepare for her economics final. This expense should be considered part of
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D.
3.  The study of the factors determining the price of gasoline relative to the price of other fuels would be primarily a concern of
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4.  Policies to control unemployment are primarily a concern of 
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5.  Which of the following is required for every market?
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6.  Which of the following disciplines relies on theories to explain how facts are related?
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7.  Which of the following is an example of normative economics
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8.  Which of the following would be most likely to cause the production possibility frontier for education and cars to shift outward?
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9.  Investment, as the term is used in economics, means
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10.  Japan can produce a car in 1,000 hours and a computer in 100 hours. Brazil can produce a car in 2,000 hours and a computer in 250 hours. Which of the following statements is correct?
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11.  An economic policy is said to improve inefficiency if
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12.  Which of the following is an illustration of entrepreneurship?
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13.  A point representing 500 roast turkey dinners and 600 steak dinners lies outside the production possibilty frontier of Joe's Restaurant, given the factors of production and technology available to it. This means that
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14.  Which of the following woudl be an example of "spontaneous order"?
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15.  If the U.S. were to relax it's immigration restrictions, we might expect
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16.  The "other things being equal" clause in the law of demand covers
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17.  A rise in the price of coffee is likely to have which of the following initial effects on the market for tea, a subsitute?
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18.  If consumer incomes go up, which of the following is initially most likely?
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D.
19.  Assuming gasoline and tires to be complementary goods, the intial effect on the tire market of an increase in the price of gasoline (other things being equal), would be best described as?
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20.  If the price of leather increases, other things being equal, which of the following would be the most likely initial effect?
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21.  Market equilibrium
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22.  Using Qs to indicate quantity supplied and Qd to indicate quantity demanded, which of the following circumstances would be likely to produce an upward movement of the price of a good?
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D.
23.  An increase in the cost of raising hogs, other things being equal, would be likely to affect the price of bacon via
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24.  Assume an increase in the price of beef increases the demand for pork. Restoration of equilibrium in the pork market will require
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25.  Suppose hot dogs to be an inferior good. An increase in consumer incomes, other things being equal, is likely to cause which of the following?
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26.  If the steelworkers' union negotiates a new contract with sharply higher wages, we would expect, once a new equilibrium is reached in the steel market,
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27.  During a visit to Havana, Cuba, you notice long lines outside every butcher shop. The most reasonable conclusion to be drawn from this observation is that the
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28.  If the equilibrium price of natural gas is $2.50 per thousand cubic feet and a price ceiling is imposed of $3 per thousand cubic feet, the likely result will be
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29.  According to a supply and demand analysis, the likely effect of a minimum wage law would be
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30.  If the equilibrium price of sugar is 15 cents per pound and government imposes a minimum price of 20 cents per pound, the likely result will be
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31.  If a firm has total revenues of $100 million, explicit costs of $90 million, and implicit costs of $20 million, its pure economic profit is
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32.  Economics profit is calculated as:
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33.  A firm has total capital of $500 million. The opportunity cost of capital is 12 percent per year. The firm earns an accounting profit of $65 million and has no other implicit costs. Its pure economic profit is
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34.  If a firm decided it could save on total cost by unplugging itself from the local electric utility and buying its own generating equipment, we could assume that
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35.  To attract the attention of potential customers, U.S. bank spends $500 to hire a band to play at the opening of a branch at the new Walmart shopping center. With regard to the ongoing operations of the new branch, the cost of hiring the band is considered to be
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36.  The law of diminishing returns implies that the marginal physical product curve must 
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37.  If a marginal physical product curve and an average physical product curve were both drawn on a single diagram, 
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38.  Where the marginal cost curve is below the average variable cost curve, 
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39.  The quantity of output where the marginal cost curve stops decrease and begins to increase corresponds with the output where:
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40.  Rising marginal cost of production is due primarily to: 
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41.  Which of the following statements is true of MC > ATC?
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42.  The long-run average cost curve
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43.  A firm is said to experience economies of scale over the range of output for which long-run average cost
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44.  The minimum efficient scale for a firm is the level of output at which 
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45.  Which of the following is a source of diseconomies of scale?
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46.  Which of the following is not characteristic of perfect competition?
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47.  Which of the following markets can contain a number of firms producing differentiated products?
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48.  A perfectly competitive firm sells its output for $50 a unit. At 1,000 units of output, marginal cost is $40 and is increasing, average variable cost is $35, and average total cost is $60. To maximize short-run profit, what should the firm do?
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49.  Which of the following market structures is likely to have the most barriers to entry?
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50.  A perfectly competitive firm sells its output at $40 per unit. At 100 units of output, it has an average total cost of $40. Marginal cost is equal to average total cost at that point. To maximize profit, what should the firm do?
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51.  A perfectly competitive firm's short-run supply curve is best described as
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52.  If a perfectly competitive firm is operating at a point where marginal cost and product price are between average variable cost and average total cost, its accounting profit must be
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53.  Assume that a variable input price, such as labor wages, rises. What will be the short-run impact on the market price for firms in a perfectly competitive industry?
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54.  Assume that a fixed cost, such as property taxes, increases for firms in a perfectly competitive industry. What will be the short-run impact on the output level of individual firms?
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55.  A firm in a perfectly competitive industry that wants to maximize profits will produce at an output level where:
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56.  In long-run equilibrium for a perfectly competitive firm, ATC equals:
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57.  If there is an increase in demand for the product of a perfectly competitive industry
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58.  If there is an increase in demand in a perfectly competitive industry
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59.  Firms in a competitive industry are said to be price takers because:
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60.  At the market equilibrium in a perfectly competitive market, consumer surplus is
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61.  A monopoly that is protected by legal restrictions on competition known as a(n)
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62.  Which of the following is true of a perfect competitor but not of a pure monopolist?
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63.  If a pure monopolist can sell 100 units of output at $50 per unit and 101 units of output at $49.99 per unit, marginal revenue in that range of output is approximately
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64.  A monopolist than wants to maximize profits should produce where:
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65.  If a monopolist is operating at a point where its marginal revenue curve is less than marginal cost but P is greater than AVC, the firm should do which of the following?
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66.  At an output of 100 units, a monopolist's marginal cost is $33, its marginal revenue is $33, its average variable cost is $30, and its average total cost is $38. To maximize profit or minimize loss in the short run, what should the firm do?
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67.  Which of the following is true about a simple monopolist in long-run equilibrium?
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68.  A limit pricing strategy implies charging a price that is less than the 
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