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Economics

100 Questions  I  By MichaelDodd423
Economics

  
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1.  A perfectly competitive firm in the short-run can earn:
A.
B.
C.
D.
2.  Refer to Exhibit 11-1.  If the markey wage rate is $25 per day, how many workers should the firm hire if it wants to maximize profits?
A.
B.
C.
D.
3.  In order to make oil profits as large as possible, OPEC meets to set oil production quotas for its members, OPEC is best classified as a:
A.
B.
C.
D.
4.  In the long run, a monopolistic competitive firm will operate at a price which:
A.
B.
C.
D.
5.  Game theory is an expecially useful model for analysis in the following types of markets:
A.
B.
C.
D.
6.  In a price leadership oligopoly model,
A.
B.
C.
D.
E.
7.  A monopsony is a:
A.
B.
C.
D.
8.  Which of the following is true under natural monopoly?
A.
B.
C.
D.
9.  Which of the following is ture about a monopoly?
A.
B.
C.
D.
E.
10.  When a perfectly competitive firm or a monopolisticaly competitive firm is making zero economic profit,
A.
B.
C.
D.
E.
11.  Firms in a monopolistically competitive industry produce:
A.
B.
C.
D.
12.  The monopolistic competition market structure is characterized by:
A.
B.
C.
D.
13.  A major characteristic of the theory of oligopoly is that:
A.
B.
C.
D.
14.  A perfectly competitive firm maximizes profits or minimizes losses in the short-run by producing at the output level at which:
A.
B.
C.
D.
15.  As presented in Exhibit 10-3, the long-run profit-maimizing output for the monopolistic competitive firm is:
A.
B.
C.
D.
E.
16.  If all firms in a monopolistic competitve industry have demand and cost curves like those shown in Exhibit 10-3, we would expect that in the long run:
A.
B.
C.
D.
17.  A union may atttempt to obtain stricter certification requirements or longer apprenticeships.  These changes would raise workers' wages because they:
A.
B.
C.
D.
18.  Critics of advertising argue that it:
A.
B.
C.
D.
19.  A monopolistic competitive firm is inefficient because the firm:
A.
B.
C.
D.
20.  Marginal revenue product is defined as the extra:
A.
B.
C.
D.
E.
21.  The goal of any monopolist is to maximize:
A.
B.
C.
D.
E.
22.  In Exhibit 11-4, the equilibrium wage and the number of food servers employed per day, respectively, are:
A.
B.
C.
D.
23.  Although a monopoly can charge any price it wishes, it chooses:
A.
B.
C.
D.
E.
24.  Which of the following is the best example of a monopolisticaly competitive market?
A.
B.
C.
D.
25.  Which of the following is the best example of an investment in human capital?
A.
B.
C.
D.
26.  A competivie firm maximizes its profits (or minimizes is losses) by producing the quantity where the market price equals the firm's:
A.
B.
C.
D.
27.  Which of the following statements concerning the supply of labor is true?
A.
B.
C.
D.
28.  Refer to Exhibit 11-1.  What is the marinal revenue product of the fifth unit of labor?
A.
B.
C.
D.
29.  Supporters of advertising claim that it:
A.
B.
C.
D.
30.  Which of the following best explains why the monopolist's marginal revenue is less than the selling price?
A.
B.
C.
D.
31.  The theory of monopolistic competition predicts that in long-run equilibrium a monopolistically competitive firm will:
A.
B.
C.
D.
32.  A monopolist will maximize profits by:
A.
B.
C.
D.
33.  Which of the following best explains why a firm in a perfectly competitive market must take the price determined in the market?
A.
B.
C.
D.
34.  The optimal hiring rule is to employ labor up to the point where:
A.
B.
C.
D.
E.
35.  As shown in Exhibit 9-3, in order to maximize profits, what price should GeneTech charge for its vaccines?
A.
B.
C.
D.
36.  A characteristic of an oligopoly is:
A.
B.
C.
D.
37.  A monolpy is:
A.
B.
C.
D.
38.  Which of the following statements best describes the price, output, and profit conditions of monopoly?
A.
B.
C.
D.
39.  Which of the following is the most accurate definition of a worker's "marginal revenue product"?
A.
B.
C.
D.
40.  As represented in Exhibit 10-3, the maximum long-run economic profit earned by this monopolistic competitive firm is:
A.
B.
C.
D.
41.  The demand curve any monopolist uses in making output decisions is:
A.
B.
C.
D.
E.
42.  Which of the following market structures describes an industry in which a group of firms formally agree to control prices and output of a product?
A.
B.
C.
D.
E.
43.  Compared to monopoly, the market results with monopolistic competition are usually expected to be:
A.
B.
C.
D.
E.
44.  Which of the following firms best fits the definition of a monopoly?
A.
B.
C.
D.
45.  An oligopoly is a market structure in which:
A.
B.
C.
D.
46.  If the equilibrium wage rate in Exhibit 11-4 increased, the cause could be that:
A.
B.
C.
D.
47.  The monopolist, unlike the perfectly competitive firm, can continue to earn an economic profit in the long run because of:
A.
B.
C.
D.
E.
48.  Firms should hire additional units of a resource as long as the:
A.
B.
C.
D.
49.  A profit-maximizing monopolixtically competitive firm will expand output to the point where:
A.
B.
C.
D.
50.  The marginal revenue product of a resource:
A.
B.
C.
D.
51.  One reason the supply of carpenters is geater than the supply of physicians is because:
A.
B.
C.
D.
52.  Compared to a competitive input market, a monosonist will hire:
A.
B.
C.
D.
53.  A technological advance that increases the productivity of teachers can be expected to have what effects on the equilibrium labor market for teachers?
A.
B.
C.
D.
E.
54.  Monopolists are criticized because they are inefficient. What is meant by this statment?
A.
B.
C.
D.
E.
55.  A monopoly:
A.
B.
C.
D.
56.  A market situation where a small number of sellers dominate the entire industry is called:
A.
B.
C.
D.
57.  When Pepsi is considering a price hike, it needs to consider how Coke may react.  This situation is called:
A.
B.
C.
D.
58.  In long-run equilibrium for a perfectly competitive firm, price equals which of the following?
A.
B.
C.
D.
59.  The kinked demand curve:
A.
B.
C.
D.
E.
60.  Under perfect competition, a firm is a price taker because:
A.
B.
C.
D.
61.  In Exhibit 11-4, suppose that in the interest of boosting incomes of the working poor, Congress imposes a minimum wage of $6.00 per hour.  The minimum wage rate creates a(n):
A.
B.
C.
D.
62.  In the short run, if a perfectly competitive firm is producing at a price below average total cost, its economic profit is:
A.
B.
C.
D.
63.  Perfect competition is a market structure in which there is:
A.
B.
C.
D.
64.  Which of the following statements is true?
A.
B.
C.
D.
65.  Excluding foreign competition, which of the following is an oligopoly in the United Sates?
A.
B.
C.
D.
66.  A worker's accumulated investment in education, training, experience, and health is called:
A.
B.
C.
D.
67.  Nonprice competition, price leadership, and cartels are models in the ____ market structure(s).
A.
B.
C.
D.
E.
68.  Marginal revenue is the change in:
A.
B.
C.
D.
E.
69.  A natural monolpy is a market where:
A.
B.
C.
D.
70.  Which of the following statements best describes the price, output, and price conditions of monopoly?
A.
B.
C.
D.
71.  Because a competitive firm is a price taker, it faces a demand curve that is:
A.
B.
C.
D.
72.  Game theory is a model for describing oligopoly price decisions among firms that are:
A.
B.
C.
D.
73.  Graphically, the marginal revenue curve of a monopolist:
A.
B.
C.
D.
74.  Which of the following is true of a perfectly competitive firm?
A.
B.
C.
D.
75.  A firm's demand for labor depends on, in part, the demand for the firm's product.  To summarize this idea, economist say that the demand for labor is:
A.
B.
C.
D.
76.  In Exibit 8-11, the profit-maximizing output level at the price of $8 is:
A.
B.
C.
D.
E.
77.  As shown in Exhibit 8-12, suppose the firm's price is OB. The firm's total economic profit at this price is equal to the area of:
A.
B.
C.
D.
E.
78.  Which of the following is characteristic of a monopolistisally competitive firm?
A.
B.
C.
D.
79.  For a monopolist:
A.
B.
C.
D.
E.
80.  In the long run, monopolisticaly competitive firms have:
A.
B.
C.
D.
81.  In Exhibit 9-3, how much vaccine should GeneTech produce to maximize its profits?
A.
B.
C.
D.
82.  A cartel:
A.
B.
C.
D.
83.  In the short run, if a perfectly competitive firm is producing at a price above average total cost, its exonomic profit must be:
A.
B.
C.
D.
84.  Perfect competition is defined as market structure in which:
A.
B.
C.
D.
85.  A firm in a price-taker market:
A.
B.
C.
D.
86.  In Exhibit 11-4, assume that both input and output markets are perfectly competitive. If one additional server increased the number of meals sold by four per day and each meal sells for $10, each additional food server will be paid:
A.
B.
C.
D.
E.
87.  Which of the following would be a human captial investment?
A.
B.
C.
D.
88.  The demand for a factor of production depends on the:
A.
B.
C.
D.
89.  In which of the following market structures must the price and output decisions of an individual firm include the possible price and output reactions of the firm's rivals?
A.
B.
C.
D.
90.  Which of the following can shift the labor demand curve to the right?
A.
B.
C.
D.
E.
91.  A monopolist faces a downward-sloping demand curve because:
A.
B.
C.
D.
92.  Which of the following statements best describes firms under monopolistic competition?
A.
B.
C.
D.
93.  The point of maximum profit for a business firm is where:
A.
B.
C.
D.
E.
94.  In the long run, both monopolistic competition and perfect competition result in:
A.
B.
C.
D.
95.  In long-run equilibrium, the typical perfectly competitive firm will:
A.
B.
C.
D.
96.  Product differentiation:
A.
B.
C.
D.
E.
97.  The marginal cost of labor for a perfectly competitive firm is given by:
A.
B.
C.
D.
E.
98.  To maximize long-run profits, the monopolistically competitive firm shown in Exhibit 10-3 will charge a price per unit of:
A.
B.
C.
D.
E.
99.  A firm that is a price taker can:
A.
B.
C.
D.
100.  An increase in demand for French fries will cause equilibrium wage rates:
A.
B.
C.
D.
E.
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