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extra attach files are the charts for 2 questions.
red , yellow and blue chart is for chapter 5 quest.6 and the all black and white chart is for chapter 4 quest.9.
Week4
1
.
Aperfectly competitive firm is a price_A_. while a monopolist is a price _B__ .
A.a.maker b.taker B.a.maker b.taker
2.Economic cost equals_A_ cost plus _B__ cost.
A.a.Explicit b.sunk B.a.accounting b.implicit
3. More or Fewer Deliveries? Consider a delivery firm that delivers packages by bicycle, charging $11 per package and paying each of its workers $10 per hour. One day, one of the workers was two hours late to work, and the number of packages delivered that day decreased by one package.
a.
The tardiness of the worker _A__the firm’s profit
A.a.increase b. decrease
b. Based on the new information provided by the tardy worker, the firm should produce fewer deliveries by reducing its workforce because the marginal cost is _B__.
B..a.greater then b. less then c. equal to
4. A firm will shut down an unprofitable business if _A_ is less than _B_.
A.a.average cost b.total revenue c.marginal cost B.a.marginal revenue b.varible cost
5. A Bluffing Farmer? Consider the following statement from a wheat farmer to his workers:
“The price of wheat is very low this year, and the most I can get from the crop is $35,000. If I paid you the same amount as I paid you last year ($30,000), I’d lose money because I also have to worry about the $20,000 I paid three months ago for seed and fertilizer. I’d be crazy to pay a total of $50,000 to harvest a crop I can sell for only $35,000. If you are willing to work for half as much as last year ($15,000), my total cost will be $35,000, so I’ll break even. If you don’t take a pay cut, I won’t harvest the wheat.”
Is the farmer bluffing, or will the farm workers lose their jobs if they reject the proposed pay cut?___
A.He’s bluffing or B.worker’s will loose their jobs
6. In the short run, a firm will shut down its production facilities when __
A. average total costs exceed price.
B. marginal costs exceed price.
C. average variable costs exceed price.
D. average fixed costs exceed price.
7. The short-run supply curve is the ___
A.marginal cost curve above the shut-down price.
B.average variable cost curve above the break-even price.
C.average variable cost curve above the shut-down price.
D.marginal cost curve above the break-even price.
8. The long-run supply curve shows the relationship between _A_ on the horizontal axis and _B_ on the vertical axis.
A.a.price b.quantity supplied B.a,price b.quantity supplied
9. How Steep a Supply Curve? Consider two cities, one on a small island, and a second on a large plain.
a.
1.) Use the line drawing tool to draw and label the long-run supply curve for housing in the small island.
2.) Use the line drawing tool to draw and label the long-run supply curve for housing in the large plain.
Carefully follow the instructions above, and only draw the required objects.
b. If demand for housing increases by the same amount in each city, which city will experience a larger increase in price?
A.The Island community since the supply is less elastic.
B.The Island community since the demand is less elastic.
C.The Plains community since the supply is less elastic.
D.The Plains community since the demand is less elastic.
View chart from pic that is added in separate file
10. In a constant-cost industry, when demand decreases the long-run equilibrium price__
A.a.decreases b.increases c.no change
Chapter 5 A.
1. As the quantity produced by a monopolist increases, the gap between the marginal revenue curve and demand curve___
A. a. Increases b, decreases
2. To maximize profit, a monopolist picks the quantity at which __A__ equals _B__
A. a.marginal revenue b.price B.a.marginal cost b.average cost
3. The monopolist can use the marginal principle to decide the profit-maximizing quantity by determining where
A.market demand equals marginal cost.
B.marginal revenue equals market demand.
C.marginal revenue equals marginal cost.
D.average cost equals market demand.
4. To show the deadweight loss from monopoly, we compare the monopoly outcome to what would happen under ___
A.an inelastic demand b.production with substitutes c.a perfectly competitive market
5. Deadweight loss from monopoly can best be described as the
A.net decrease in market surplus.
B.decrease in producer surplus.
C.net increase in market surplus.
D.increase in producer surplus
6. The graph shown at right shows production in both a monopoly market and a perfectly competitive market.
Which of the shaded regions shows the increased producer surplus from the existence of a monopoly?
A.a and b
B.b and c
C.b
D.c
Area A represents
A.the consumer surplus under monopoly conditions.
B.additional windfall profits to the monopolist.
C.the deadweight loss due to market inefficiency.
D.scarcity in the market thanks to artificial production caps.
Picture in file that goes with this it is by itself which is the red ,yellow and blue chart
7. Consider the arthritis drug example in your text. If the research and development costs are $20 million, Flex joint will develop the drug if it gets a patent that lasts at least __ years. Enter your response as an integer.)
8. The aspirin sold in airports is more expensive than aspirin sold in grocery stores because the demand for aspirin in airports is relatively __.
A.less elastic b. more elastic
9. Tax Cuts for Discounters? Consider the following statement from a member of a city council:
”Several of the merchants in our city offer discounts to our senior citizens. These discounts obviously decrease the merchants’ profits, so we should decrease the merchants’ taxes to offset their losses on senior-citizen discounts.”
Do you agree or disagree? A.Agree or B.disagree
10. When a firm considers the practice of price discrimination, the firm
A.applies the marginal principle twice to each different group separately.
B.applies the marginal principle for each different group separately.
C.applies the marginal principle the same for all customers.
D.does not apply the marginal principle at all.
Week6
1. Labor and capital are exchanged in ___markets.
A.factor b.product
2. Types of Income. Sometimes economists distinguish between wages, on the one hand, and rents, interest, and profits, on the other. The basis of that distinction is whether it is
A.used to produce a good or a service.
B.compensation for labor or capital.
C.paid in cash or directly deposited into a bank account.
D.earned or unearned.
3. If gross investment equals depreciation, then net investment ___.
a.is negative
b.equals one
c.equals zero
4. The Upside and Downside of Trade Deficits. A student once said, “Trade deficits are
bad because we must sell domestic assets.” What is the upside to trade deficits?
A.Trade deficits are not counted in GDP.
B.Trade deficits indicate more purchasing opportunities for consumers.
C.Trade deficits decrease GDP.
D.Trade deficits mean we are selling more goods than we are producing.
5. Depreciation and Automobiles. Suppose you buy a new car for $25,000. One year later it is worth $18,750, and two years later it is worth $16,500. The depreciation on the car ___
A.rises for the second year
B.is the same for both years.
C.is 25 percent in the second year
D.is lower for the second year than the first year.
6. What is the largest component of national income?
A.Corporate profits.
B.Net interest.
C.Rental income.
D.Compensation of employees (wages and benefits).
E.Proprietor’s income (income of unincorporated business).
7. Philippine Immigrants Abroad. Every year, the Philippines sends many workers abroad including nurses, health professionals, and oil workers. How do you think GNP and GDP in the Philippines compare?
A.This does not change the Philippines’ GDP or GNP.
B.This increases the Philippines’ GNP by the net income earned abroad but does not change its GDP.
C.This increases the Philippines’ GDP by the net income earned abroad but does not change its GNP.
D.This increases the Philippines’ GNP and GDP by the net income earned abroad.
8. If the GDP deflator equals 100, then real and nominal GDP in 2010 will be equal. ___
A.true B.false C.insufficient information
9. Since World War II, the United States has experienced __ recessions.
A. 11 B.13 C.9 D.7
10. Does Spending Measure Welfare? Suppose a community spends $1 million on salaries and equipment for its police department. Because it believes that citizens are now more law abiding, the community decides to cut back on the number of police it employs. As a result, the community now spends $800,000 less on the police officers. The crime rate remains the same.
a. What happens to measured GDP?
A.GDP falls by $200,000.
B.GDP increases by $800,000.
C.GDP does not change.
D.GDP falls by $800,000.
b. Does this change in GDP accurately reflect welfare in this case?
A.No, because the community is spending less on police officers.
B.No, because the crime rate has not changed.
C.Yes, because the community is spending less on police officers.
D.Yes, because the savings on police officers can now be spent on welfare.
.
