 п»їPractice Check Economics 01 Midterm two В В Fall 2013

Teacher K. C. Fung

Multiple Choice: Select the right answer

1 ) В В В Suppose value of baguette is \$1 and cost of sushi is \$5, then to increase total utility, a logical consumer should consume till:

a) В В В the marginal energy of fl?te divided by marginal power of sushi is 1 b) В В В the marginal electricity of fl?te divided by the marginal energy of sushi is 5 c) В В В the marginal electricity of fl?te divided by marginal power of sushi is 1/5 d) В В В none in the above

2 . В В В A flawlessly competitive market is one particular where

a) В В В All manufacturers are selling price takers

b) В В В There is merely one manufacturer

c) В В В The output developed is standardised

d) В В В (a) and (c)

3. В В В If an industry that may be currently correctly competitive were to become monopolized, which with the following might occur?

a) В В В Both value and end result would continue to be unchanged

b) В В В Price might increase and output could decrease

c) В В В Both value and outcome would lower

d) В В В Price would decrease and end result would increase

4. В В В The difference between total expense of a given quantity of output plus the variable cost of that output is

a) В В В The limited product of labor

b) В В В The marginal cost of that output

c) В В В The total product of labor

d) В В В The fixed cost of that output

your five. В В В The average variable cost is at its minimal when:

a) В В В Marginal value is greater than the average variable price b) В В В Marginal cost is smaller than the average adjustable cost c) В В В Marginal cost equals the regular variable cost

d) В В В None of the above

6. В В В The difference between the typical total expense curve and the average changing cost shape gets smaller sized at larger quantity of output because

a) В В В The average variable expense is a constant

b) В В В The normal total value is decreasing for all output levels c) В В В The average fixed cost is decreasing as end result increases d) В В В The marginal cost is growing

7. В В В Consider a standard monopolist and select the actual statement/s:

a) В В В there is no supply competition with a monopolist

b) В В В there will be deadweight loss

c) В В В the profit-maximizing point is usually where cost equals to minor cost d) В В В (a) and (b)

8. В В В The optimal output guideline says that

a) В В В Profit is maximized by making the quantity of end result at which the marginal earnings of the previous unit made is equal to its minor cost b) В В В Output needs to be chosen to lessen marginal expense c) В В В One should generate as much result as possible

d) В В В both (b) and (c)

9. В В В The short run supply curve for a perfectly competitive firm can be

a) В В В The upward sloping portion of the typical variable expense b) В В В The upward sloping portion of the standard total price c) В В В The marginal expense curve over a minimum of the average total cost d) В В В The marginal cost curve above the minimum of the standard variable price

10. В В В DeBeers became a monopoly by simply:

a) В В В Establishing control over a scarce resource input b) В В В Economies of scale

c) В В В Technological superiority

d) В В В Ownership of a patent

11. В В Suppose at first the beef industry in Argentina are at autarky. В Trade then takes with Argentina exporting beef to the community. Which in the following would be the effects of Argentina moving by autarky to trade?

a) В В В Consumer surplus in the Argentinian beef market decreases b) В В В Producer excessive in the Argentinian beef sector increases c) В В В Total extra in the Argentinian beef sector increases d) В В В All from the above

12. В В An not caring curve:

a. В В В Is typically downward sloping

b. В В В Traces out most consumption lots that yield the same amount of total energy c. В В В Never crosses another indifference competition

d. В В В All of the previously mentioned

13. В В According to Krugman and Wells (3rd edition), someones irrational patterns typically comes from six blunders they make...

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