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Economics Midterm Study Guide

45 Questions  I  By Xamboozi
Economics Midterm Study Guide
Midterm Questions

  
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1.  If the tea harvest is very good in a particular year, the supply of tea will be
A.
B.
C.
D.
2.  Marginal physical product is
A.
B.
C.
D.
3.  Which of the following is not true regarding a change in quantity demanded?
A.
B.
C.
D.
4.  A monopolist is
A.
B.
C.
D.
5.  The market produces too few public goods because:
A.
B.
C.
D.
6.  All final goods and services that make up GDP can be expressed in the form:
A.
B.
C.
D.
7.  Monopolistic competition is identified by
A.
B.
C.
D.
8.  If the price of peanut butter increases, other things constant, demand for jelly will
A.
B.
C.
D.
9.  Economists emphasize the importance of equilibrium in markets because
A.
B.
C.
D.
10.  As a result of the decline in the demand for beef in the United States, the demand for cattle ranchers has
A.
B.
C.
D.
11.  In order to demand a good, the buyer must
A.
B.
C.
D.
12.  Which of the following is the best example of a microeconomic topic?
A.
B.
C.
D.
13.  Gross Domestic Product (GDP) equals the
A.
B.
C.
D.
14.  An improvement in a firm's technology that reduces its production costs will result in a (an):
A.
B.
C.
D.
15.  Which of the following is true for monopoly?
A.
B.
C.
D.
16.  Suppose the market for hot pretzels in New York City is perfectly competitive. What is true of demand in this market?
A.
B.
C.
D.
17.  A demand curve usually has a
A.
B.
C.
D.
18.  If Stimpson University increases tuition in order to increase its revenue, it will:
A.
B.
C.
D.
19.  Which of the following statements are true?
A.
B.
C.
D.
20.  Macroeconomics is best described as the study of
A.
B.
C.
D.
21.  The optimal mix of output is the:
A.
B.
C.
D.
22.  Which of the following items is included in the calculation of GDP?
A.
B.
C.
D.
23.  When the additional satisfaction from a good declines as more of it is consumed, this illustrates the law of
A.
B.
C.
D.
24.  Oligopolistic industries consist of
A.
B.
C.
D.
25.  If the quantity of concert tickets sold decreases by 10 percent when the price increases by 5 percent, the price elasticity of demand over this range of the demand curve is:
A.
B.
C.
D.
26.  Compared to a perfectly competitive firm, a monopolist:
A.
B.
C.
D.
27.  A firm is currently operating where the MC of the last unit produced = $64, and the MR of this unit = $70, i.e. MR > MC. What would you advise this firm to do?
A.
B.
C.
D.
28.  A model is defined as a:
A.
B.
C.
D.
29.  If the MPP of an additional unit of labor is 20 units per hour, the product price is $5 per unit, and the wage rate is $60 per hour, then, (Hint: MRP = MPP X p)
A.
B.
C.
D.
30.    National income account (billions of   dollars)     Personal consumption expenditures (C) $500     Government expenditures (G) 50     Gross private domestic investment (I) 300     Exports (X) 50    Imports (M) 100   As shown in the above exhibit, GDP as calculated by the expenditure approach is
A.
B.
C.
D.
31.  Which of the following is not necessarily a characteristic of perfect competition?
A.
B.
C.
D.
32.  ____ is the situation in which the marginal product of labor is declining as more labor is hired.
A.
B.
C.
D.
33.  The short run is a period of time:
A.
B.
C.
D.
34.  If real GDP increased by 3 percent, then
A.
B.
C.
D.
35.  Opportunity cost is defined
A.
B.
C.
D.
36.  A perfectly competitive firm is a price taker because:
A.
B.
C.
D.
37.  Economics
A.
B.
C.
D.
38.  Marginal cost is the:
A.
B.
C.
D.
39.  A firm hires labor in a labor market. If the wage rate is $44, the firm should hire
A.
B.
C.
D.
40.  The golden rule of profit maximization states that any firm maximizes profit by producing where
A.
B.
C.
D.
41.  Market failure occurs when:
A.
B.
C.
D.
42.  A public good:
A.
B.
C.
D.
43.  A minimum wage:
A.
B.
C.
D.
44.  If all resources are used efficiently to produce goods and services, a nation will find itself producing
A.
B.
C.
D.
45.  The communal nature of a highway means that no one individual is motivated to pay for it because even those who do not pay for it will still benefit from using it. This is an example of:
A.
B.
C.
D.
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