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finalexam - Final Exam Fall 2009 Multiple Choice Identify...

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Final Exam Fall 2009 Multiple Choice Identify the choice that best completes the statement or answers the question. Table 13-9 Teacher's Helper is a small company that has a subcontract to produce instructional materials for disabled children in public school districts. The owner rents several small rooms in an office building in the suburbs for $600 a month and has leased computer equipment that costs $480 a month. Output (Instructional Modules per Month) Fixed Costs Variable Costs Total Cost Average Fixed Cost Average Variable Cost Average Total Cost Marginal Cost 0 $1,080 1 $1,080 $ 400 $1,480 $400 2 $965 $450 3 $1,350 $2,430 4 $1,900 $475 5 $2,500 $216 6 $4,280 $700 7 $4,100 8 $5,400 $135 9 $7,300 10 $10,880 $980 ____ 1. Refer to Table 13-9 . What is the average variable cost for the month if 6 instructional modules are produced? a. $700.00 b. $180.00 c. $713.33 d. $533.33 ____ 2. Suppose that a small county is considering adding a guard rail to a dangerous curve by a river. The guard rail will cost $70,000. The average damage done to vehicles that slide off the road at the curve is $10,000. It is expected that the guard rail will prevent 5 vehicles from sliding off the road during its usable life. What should the county do? a. Install the guard rail because the benefits exceed the costs. b. Do not install the guard rail at any cost because drivers can purchase private insurance for their vehicles. c. Install the guard rail because safety is priceless. d. Do not install the guard rail because the costs exceed the benefits. Figure 4-7
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S S' quantity price ____ 3. Refer to Figure 4-7 . The movement from S to S could be caused by a. an improvement in technology. b. an increase in income. c. an increase in input prices. d. an increase in the price of the good. ____ 4. Suppose roses are currently selling for $20 per dozen, but the equilibrium price of roses is $30 per dozen. We would expect a a. shortage to exist and the market price of roses to increase. b. surplus to exist and the market price of roses to increase. c. shortage to exist and the market price of roses to decrease. d. surplus to exist and the market price of roses to decrease. Figure 18-4 This figure below shows the labor market for automobile workers. The curve labeled S is the labor supply curve, and the curves labeled D 1 and D 2 are the labor demand curves. On the horizontal axis, L represents the quantity of labor in the market. D D S 0 1 2 L ____ 5. Refer to Figure 18-4. Which of the following events would most likely explain a shift of the labor-demand curve from D 2 back to D 1 ?
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a. An increase in the demand for automobiles. b. A technological advance increased the marginal product of automobile workers. c.
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This note was uploaded on 03/23/2011 for the course 220 102 taught by Professor Perry during the Fall '09 term at Rutgers.

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finalexam - Final Exam Fall 2009 Multiple Choice Identify...

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