midterm2practiceanswers

midterm2practiceanswers - Midterm 2 Key Version #2 Assume...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: Midterm 2 Key Version #2 Assume that Dusty has $30 in income, the price of a loaf of bread is $1.50, and the price of a jar of peanut butter is $3. Frank - Chapter 005 1. Dusty can buy a maximum of _____ loaves of bread or a maximum of _____ jars of peanut butter. A. 10; 5 B. 10; 20 C. 15; 15 D. 20; 10 AACSB: Analytical Skills Bloom's: Application Frank - Chapter 005 #58 Learning Objective: 5-3 Section: Applying the Rational Spending Rule 2. Which of the following factors of production is likely to be fixed in the short run? A. The amount of electricity consumed. B. The number of employee-hours. C. The amount of paper used. D. The location of the firm. AACSB: Analytical Skills Bloom's: Understanding Frank - Chapter 006 #49 Learning Objective: 6-3 Section: Profit-Maximizing Firms in Perfectly Competitive Markets 3. You are trying to decide how to spend your last lunch dollar. You should use that dollar to buy more of A. the item that will give you the greatest marginal utility per dollar spent. B. the item from which you have gained the greatest total utility already. C. the item that you have already consumed the most of. D. the item that costs the least. AACSB: Analytical Skills Bloom's: Understanding Frank - Chapter 005 #87 Learning Objective: 5-3 Section: Applying the Rational Spending Rule 4. Suppose 30 employee-hours can produce 50 units of output. Assuming the law of diminishing marginal returns is present, to produce 100 units of output will require A. a total of 60 or less employee-hours. B. an additional 30 employee-hours. C. more than 30 additional employee-hours. D. less than 30 additional employee-hours. AACSB: Analytical Skills Bloom's: Application Frank - Chapter 006 #56 Learning Objective: 6-3 Section: Profit-Maximizing Firms in Perfectly Competitive Markets This phone center uses only equipment and workers to provide service....
View Full Document

Page1 / 11

midterm2practiceanswers - Midterm 2 Key Version #2 Assume...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online