Economics

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