Economics Midterm Study Guide

45 Questions  I  By Xamboozi
Midterm Questions

  
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1.  Gross Domestic Product (GDP) equals the
A.
B.
C.
D.
2.  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.
3.  The short run is a period of time:
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B.
C.
D.
4.  All final goods and services that make up GDP can be expressed in the form:
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B.
C.
D.
5.  The market produces too few public goods because:
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B.
C.
D.
6.  Market failure occurs when:
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D.
7.  Opportunity cost is defined
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D.
8.  Compared to a perfectly competitive firm, a monopolist:
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B.
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D.
9.  ____ is the situation in which the marginal product of labor is declining as more labor is hired.
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B.
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D.
10.  In order to demand a good, the buyer must
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D.
11.  A perfectly competitive firm is a price taker because:
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D.
12.  Which of the following is not true regarding a change in quantity demanded?
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B.
C.
D.
13.  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)
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B.
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D.
14.  The optimal mix of output is the:
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C.
D.
15.  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:
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D.
16.  A model is defined as a:
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D.
17.  If all resources are used efficiently to produce goods and services, a nation will find itself producing
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D.
18.  Macroeconomics is best described as the study of
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19.  Marginal cost is the:
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C.
D.
20.  Marginal physical product is
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D.
21.  An improvement in a firm's technology that reduces its production costs will result in a (an):
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B.
C.
D.
22.  Suppose the market for hot pretzels in New York City is perfectly competitive. What is true of demand in this market?
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B.
C.
D.
23.  Which of the following is the best example of a microeconomic topic?
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D.
24.  The golden rule of profit maximization states that any firm maximizes profit by producing where
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25.  If the tea harvest is very good in a particular year, the supply of tea will be
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D.
26.  Oligopolistic industries consist of
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D.
27.  As a result of the decline in the demand for beef in the United States, the demand for cattle ranchers has
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D.
28.    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.
29.  A monopolist is
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D.
30.  Economists emphasize the importance of equilibrium in markets because
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31.  If real GDP increased by 3 percent, then
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32.  Monopolistic competition is identified by
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D.
33.  If the price of peanut butter increases, other things constant, demand for jelly will
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D.
34.  A public good:
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D.
35.  When the additional satisfaction from a good declines as more of it is consumed, this illustrates the law of
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D.
36.  Which of the following is true for monopoly?
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D.
37.  Which of the following is not necessarily a characteristic of perfect competition?
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D.
38.  Economics
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39.  A firm hires labor in a labor market. If the wage rate is $44, the firm should hire
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D.
40.  A minimum wage:
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D.
41.  Which of the following statements are true?
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42.  Which of the following items is included in the calculation of GDP?
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43.  If Stimpson University increases tuition in order to increase its revenue, it will:
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D.
44.  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:
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D.
45.  A demand curve usually has a
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D.
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