econ 4697 quiz 1

econ 4697 quiz 1 - 4687 Industrial Organization Sample quiz...

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Sample quiz questions Choose the most appropriate (single) answer. 1. Suppose a city facing a shortage of rental apartments eliminate rent controls. Which of the following is the most likely to occur? a. A decrease in rents and a decrease in the number of apartment units supplied. b. An increase in rents and an increase in the number of apartment units supplied. c. A decrease in the demand for apartments and an increase in the number of apartment units supplied. d. An increase in the demand for apartments and a decrease in the number of apartments units supplied. 2. At the profit-maximizing level of output, a purely competitive firm will: a. Produce the quantity of output at which marginal costs equals price. b. Produce the quantity of output at which marginal costs is minimized. c. Keep marginal cost lower than price, so profits will be greater than zero. d. Try to sell all the output it can produce, to spread fixed costs across the largest possible number of units. 3. Which of the following correctly describes an external benefit resulting form an individual’s purchase of flu shots from a doctor? a. Doctors earn income by charging for flu shots. b. Flu shots are less expensive than catching the flu. c. Flu shots reduce the likelihood of others catching the flu. d. Flu shots reduce sick days, allowing those who get flu shots to earn more income. 4. The opportunity cost of being a full-time student at a university instead of working full-time at a job includes all of the following EXCEPT: a. Payments for meals. b. Payments for tuition. c.
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This note was uploaded on 03/31/2008 for the course ECON 4697 taught by Professor Savage during the Spring '08 term at Colorado.

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econ 4697 quiz 1 - 4687 Industrial Organization Sample quiz...

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