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Economics Midterm Study Guide

45 Questions  I  By Xamboozi
Economics Midterm Study Guide
Midterm Questions

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