Numerade

Questions asked

ANSWERED

Donna Densmore

Numerade educator

41. When the demand for good A increases, a. Both the price and quantity traded will increase b. The price will increase but quantity traded will decrease c. Both the price and quantity traded will decrease d. The price will decrease but the quantity traded will increase e. A surplus will result 42. The long-run average cost curve a. is the short-run average total cost curve with the lowest cost b. will shift up when fixed costs increase c. traces out the minimum points on all the short-run average total cost curves for each scale of plant d. traces out the minimum short-run average total cost for each output level 43. An effective price floor results in black market pressures: a. To reduce prices because of surpluses b. To raise prices because of surpluses c. To reduce prices because of shortages d. To raise prices as a result of surpluses 44. A movement along the supply curve is the same as a. A shift in the supply curve b. A change in the quantity supplied c. A change in the quantity demanded d. All of the above 45. For which of the following costs must the associated average curve fall continuously? a. Total cost b. Variable cost c. Fixed cost d. Marginal cost

View Answer

ANSWERED

Donna Densmore

Numerade educator

32. If a change in price results in no change in quantity demanded, then demand is a. a.Elastic b.Perfectly elastic c.Perfectly inelastic d. inelastic 33. When the government chooses to use resources to build a dam, those resources are no longer available to build a highway. This is illustrates the concept of a.Macroeconomics b. Rational choice C. Optimizing d. Opportunity cost 34. Which of the following could shift the demand curve for grape jelly to the right? a.An increase in income b. decrease in the price of strawberry preserves, a substitute c. A decrease in the price of peanut butter, a complement d. A fall in population 35. When the marginal product of labour is greater than the average product of labour, the average product of labour is increasing b) the marginal product of labour is increasing c) the total product curve is negatively sloped d) the firm is experiencing diminishing returns 36. The author of An Inquiry into the Nature and Causes of the Wealth of Nations is a. John M. Keynes. b. Alan Greenspan. C. d. Adam Smith Alfred Marshall. 37. A shortage will exist if a. b. The price is above equilibrium The price is below equilibrium There are not enough producers There are not enough consumers e. Demand falls 38. Which of the following statements best describes the problem of the firm? a. To maximize revenue b. To maximize costs whiles minimizing revenues To maximize profits To minimize costs 39. The problem of scarcity a. b. Exists only in economies that rely on the market mechanism Exists only in economies that rely on the command mechanism C. Exists in all economies d. Means that at least some prices are too high e. Can be solved by economists 40. Suppose we observe both an increase in the price of good A and an increase in the quantity of good A traded. Which of the following is a likely explanation? a. The law of demand is violated b. The law of supply is violated c.The demand for A has increased d.The supply of A has increased e.The supply of A has decreased

View Answer

ANSWERED

Donna Densmore

Numerade educator

23. The short run is a period of time in which a) the amount of output produced is fixed b) there is a shortage of most inputs c) the quantities of some inputs are fixed and others can be varied d) there is not enough time to make all of the decisions 24. The marginal product of labour is the change in total product caused by a) a one-unit increase in the quantity of labour employed, holding the quantity of capital constant. b) a one-unit increase in the quantity of capital employed, holding the quantity of labour constant. c) a one-unit increase in both the quantity of labour and capital employed d) a change in the cost of labour 25. Output will increase by less than 10 percent when all inputs are increased by 10 percent if a) marginal cost is decreasing b) the long-run average cost curve is negatively sloped c) increasing returns to scale are present d) decreasing returns to scale are present 26. A choice by an individual which is intended to make him or her as well-off as possible is called a(n) a. Economic choice b. Normative choice c. Rational choice d. Positive choice 27. An economist's generic name for a business organization is a. A multinational b. A firm A corporation d. A partnership e. An organization 28. Which of the following concepts is not illustrated by a production possibility frontier a. Scarcity b. Monetary exchange C. d. Opportunity cost Attainable and unattainable points e. The tradeoff between producing one good versus another 29. In order to optimize, people must a. be able to carry out complex mathematical calculations b. Have unlimited resources с. Be free from government constraints d. Evaluate the cost of alternative actions 30. When economists say that people are rational, they mean that people a. Do not make errors of judgment b. с. Make the best decision from their perspective Act on complete information d. Will not later regret any decision made now 31. Changes in which of the following variables will not shift the demand curve? a. Income b. Price of other goods c. The price of the good itself d. Population size

View Answer

ANSWERED

Donna Densmore

Numerade educator

14. The maximum price a consumer is willing to pay for a good is the Consumer surplus b. The value of the good Individual demand d. Marginal utility of the good 15. The branch of economics that studies the economy as a whole is called a. Macroeconomics b. Microeconomics Keynesian economics d. Positive economics Normative economics 16. The determination of prices in individual markets is primarily a concern of a. Positive economics b. Negative economics c. Macroeconomics d. Microeconomics 17. A market shortage is: a. The amount by which the quantity demanded exceeds the quantity supplied at a b. given price Excess demand C. A situation in which market price does not equal equilibrium price d. All of the above 18. The marginal product of labour can be measured a) as the slope of a straight line from the origin to a point on the total product curve b) as the slope of the total product curve c) as the slope of the marginal product curve d) as the change in total product divided by the change in labour input 19. The relationship between factors of production used in the production of goods and services and output is called a a. Production-possibilities curve b. Production function Production boundary d. Production-possibilities boundary 20. An increase in income will a. Cause the price of mangoes to fall if mangoes are inferior goods b. Cause the price of mangoes to rise if mangoes are inferior goods C. Cause the quantity of mangoes traded to decline if mangoes are inferior goods d. Cause a decrease in supply for mangoes whether or not mangoes are inferior goods 21: If a competitive firm is producing an output at which price is less than average total cost, the firm (a) Should shut down (b) Is breaking even (c) Is experiencing economic losses but should continue to operate as long as price is above minimum average fixed cost (d) Is experiencing economic losses but should continue to operate as long as price is above minimum average variable cost 22. External economies are factors beyond the control of an individual firm which (a) Lower its average revenue as industry output rises (b) Raise its costs as industry output rises (c) Lower its costs as industry output rises (d) Raise its profit as industry output rises

View Answer

ANSWERED

Taha T

Numerade educator

9. In economics, the invisible hand principle refers to a. A state of balance between conflicting forces such as supply and demand b. The tendency for capital investment in each market to move toward a normal rate of return c. The tendency of the market prices to direct individuals pursuing their own interests into productive activities that also promote economic well being of society d. The ability of firms in a market to produce homogenous goods 10. The payments made by a firm for its factors of production are called a. Revenues b. Costs c. Sales d. Receipts 12. Statements about "what ought to be" are called a. Positive statements b. Normative statements c. Economic statements d. Scientific statements 13. The graph of the maximum output attainable for each quantity of a variable input, given the amount of other inputs is called a) marginal product b) average variable product c) total fixed product d) total product

View Answer

ANSWERED

Taha T

Numerade educator

6. Illegal trading activity above a legal price ceiling is known as a. A price ceiling b. Wage controls c. A black market d. Efficient markets 7. An increase in supply is represented by a. A movement down the supply curve b. A movement up the supply curve c. A rightward shift in the supply curve d. A leftward shift in the supply curve e. Both (a) and (c) 8. If Oko is producing at a point on his production possibility frontier, then he a. Cannot produce any more of either good b. Is unaffected by costs and technology, since he is fully using his resources c. Will be unable to gain from trade d. Is not subject to scarcity e. Can increase the production of one good only by decreasing the production of the other

View Answer

ANSWERED

Taha T

Numerade educator

1. Abla makes €20 an hour as a welder. She must take two hours off work (without pay) to go to the dentist to have a tooth pulled. The dentist charges ¢ 100. The opportunity cost of Abla's trip to the dentist is a. €140 b. ¢120 c. €100 d. ¢40 2. In economics, the long run refers to a time period a) of one year or less b) in which all inputs are variable c) in which all inputs are fixed d) in which there is at least one fixed input e) in which the firm can be more technologically efficient 3. A tractor is an example of a. Capital b. Labour C. Land (natural resource) d. Management e. None of the above 4. Under a market mechanism, the determination of what, how and for whom to produce for is the result of a. Decisions by the government b. The political process c. The amount of shortages in the economy d. Price adjustments 5. An open economy is one that a. Has free borders b. Allows private ownership of factors of production c. Engages in trade with other economies d. Allows a free press

View Answer

INSTANT ANSWER

d. Price adjustments 5. An open economy is one that a. Has free borders b. Allows private ownership of factors of production c. Engages in trade with other economies d. Allows a free press Examiners: Group A: Dr. E. Nketiah-Amponsah, Group B: Dr. S.K.K. Akoena Group C: Mrs. Sarah Akuoni.

View Answer

INSTANT ANSWER

5.Governments may intervene in a market economy in order to a.protect property rights. b correct a market failure due to externalities. c.achieve a more equal distribution of income. d.all of the above. 6 If a nation has high and persistent inflation, the most likely explanation is a. the central bank creating excessive amounts of money. b.unions bargaining for excessively high wages. c.the government imposing excessive levels of taxation. d.firms using their monopoly power to enforce excessive price hikes.

View Answer

Kingsley O.