Economics Midterm Study Guide

45 Questions  I  By Xamboozi
Midterm Questions

  
Changes are done, please start the quiz.


Question Excerpt

Removing question excerpt is a premium feature

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


to post comments.

Removing ad is a premium feature

Upgrade and get a lot more done!
Take Another Quiz