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Unformatted text preview: 7 Home Resources Links Faculty Contact us My courses Laith Orabi Searc English (en) Home My courses ECON 1580 - AY2021-T2 17 December - 23 December Graded Quiz Unit 6 Started on State Completed on Time taken Wednesday, 23 December 2020, 10:05 PM Finished Wednesday, 23 December 2020, 10:15 PM 10 mins 31 secs Marks 21.00/21.00 Grade 100.00 out of 100.00 Question 1 Correct Mark 1.00 out of 1.00 Flag question In this exhibit (Total Revenue, Total Costs, and Economic Pro t), total revenue and total cost are equal at approximately _______ pounds and $ _______ . Select one: a. 0; 300 b. 2,000; 1,200 c. 4,500; 1,300 d. 8,300; 2,250 The correct answer is: 4,500; 1,300 Question 2 Correct Mark 1.00 out of 1.00 Flag question In this exhibit (Figure 7-2), the potential output in this economy is: Select one: a. $7,000 billion at a price level of 1.16. b. $7,000 billion at a price level of 1.12. c. $7,000 billion at a price level of 1.08. d. described correctly in all of the above. The correct answer is: described correctly in all of the above. Question 3 Correct Mark 1.00 out of 1.00 Flag question According to the international trade e ect, holding everything else unchanged, Select one: a. an increase in net exports shifts the aggregate demand curve to the right. b. an increase in the domestic price level reduces net exports leading to a movement along the aggregate demand curve. c. an increase in the exchange rate shifts the aggregate demand curve to the right. d. an increase in the prices of foreign goods level reduces imports leading to a movement along the domestic economy's aggregate demand curve. The correct answer is: an increase in the domestic price level reduces net exports leading to a movement along the aggregate demand curve. Question 4 Correct Mark 1.00 out of 1.00 Flag question An oligopoly knows that its _______ a ect(s) its _______ and that the _______ of its rivals will a ect it. Select one: a. actions; rivals; reactions b. price changes ; total revenue in a positive way; reactions c. actions rarely; rivals; actions d. price increases; total revenue in the long run only; large but not small price changes The correct answer is: actions; rivals; reactions Question 5 Correct Mark 1.00 out of 1.00 Flag question Which one of the following is an example of a frictionally unemployed individual? Select one: a. Martin, who lacks the skills necessary to be employed as a machinist. b. Lee, who lost his job as an art director because of a recession. c. Jan, who has a Ph.D. in economics, but is a bus driver. d. Helena, who has just graduated from college and is searching for a job as an architect. The correct answer is: Helena, who has just graduated from college and is searching for a job as an architect. Question 6 Correct Mark 1.00 out of 1.00 Flag question If the CPI is 120 in 2005 and 150 in 2006, what is the rate of in ation over this period? Select one: a. 8% b. 20% c. 25% d. 30% The correct answer is: 25% Question 7 Correct Mark 1.00 out of 1.00 Flag question Economic pro ts are guaranteed for: Select one: a. a monopoly, but not a perfectly competitive rm. b. a perfectly competitive rm, but not a monopoly. c. both a monopoly and a perfectly competitive rm. d. neither a monopoly nor a perfectly competitive rm. The correct answer is: neither a monopoly nor a perfectly competitive rm. Question 8 Correct Mark 1.00 out of 1.00 Flag question The natural rate of unemployment: Select one: a. increases during recessions. b. equals the sum of frictional and cyclical unemployment. c. equals the sum of frictional and structural unemployment. d. is always less than full employment rate of unemployment. The correct answer is: equals the sum of frictional and structural unemployment. Question 9 Correct Mark 1.00 out of 1.00 Flag question The market for plumbing services in a city can be characterized by the model of monopolistic competition. Suppose that the market is initially in long-run equilibrium, and then there is an increase in demand for plumbing services. We expect that in the long run: Select one: a. rms will leave the plumbing market. b. there will be a short-run increase in the number of rms, but then the number will return to the original level. c. new rms will enter the plumbing market. d. rms will shut down, but they will not leave the industry. The correct answer is: new rms will enter the plumbing market. Question 10 Correct Mark 1.00 out of 1.00 Flag question What do economists mean by the term "sticky wage?" Select one: a. It refers to the reluctance by employers to increase nominal wages during an in ationary period. b. It refers to a wage that is slow to adjust to its equilibrium level, creating sustained periods of shortage or surplus in the labor market. c. It refers to a breakdown in wage negotiations between employers and employee unions. d. It refers to a union negotiated wage. The correct answer is: It refers to a wage that is slow to adjust to its equilibrium level, creating sustained periods of shortage or surplus in the labor market. Question 11 Correct Mark 1.00 out of 1.00 Flag question Monopolistic competition is an industry characterized by: Select one: a. a product with no close substitutes. b. a horizontal demand curve. c. a small number of rms. d. relatively easy entry and exit. The correct answer is: relatively easy entry and exit. Question 12 Correct Mark 1.00 out of 1.00 Flag question Perfect competition is important to study because it: Select one: a. is a theoretical extreme used for analysis. b. is a realistic model of a few key markets. c. is a realistic model of many di erent markets. d. avoids all real-world problems and complexities. The correct answer is: is a theoretical extreme used for analysis. Question 13 Correct Mark 1.00 out of 1.00 Flag question A monopoly responds to an increase in demand by _______ price and _______ output. Select one: a. increasing; decreasing b. increasing; increasing c. decreasing; increasing d. decreasing, decreasing The correct answer is: increasing; increasing Question 14 Correct Mark 1.00 out of 1.00 Flag question According to the Case in Point on hockey teams, economic theory predicts that if a sports team consistently sells out its games, it will operate at a quantity where marginal revenue is: Select one: a. the highest possible. b. positive. c. negative. d. equal to marginal cost and both are equal to zero. The correct answer is: positive. Question 15 Correct Mark 1.00 out of 1.00 Flag question Because tourist demand for airline ights is relatively _______ , small _______ in price will result in relatively _______ in additional tourists. Select one: a. inelastic; reductions; very small increases b. elastic; reductions; large increases c. inelastic; increases; small decreases d. elastic; increases; no change The correct answer is: elastic; reductions; large increases Question 16 Correct Mark 1.00 out of 1.00 Flag question A statement that best re ects an evaluation of monopoly rms is that: Select one: a. they have a great deal of market power. b. they are economically e cient. c. consumers are given more choices, lower costs, and higher quality. d. competition should replace all monopolies. The correct answer is: they have a great deal of market power. Question 17 Correct Mark 1.00 out of 1.00 Flag question The natural rate of unemployment: I. includes frictional and structural unemployment. II. is equal to zero when an economy is producing at a point on its production possibilities frontier. III. is the unemployment rate that exists when the quantity of labor demanded is equal to the quantity of labor supplied. Select one: a. I, II, and III b. I and II only c. I and III only d. II and III only The correct answer is: I and III only Question 18 Correct Mark 1.00 out of 1.00 Flag question In the economy of a city called “Heaven” the aggregate demand is illustrated with the AD0 curve. Suppose that after a relative directive comes directly by the Fed, the Board of Directors has taken the decision to reduce the money supply. How such a policy will be illustrated in the above gure and regarding its aggregate demand. Select one: a. By a relocation of AD curve to AD1 b. By a relocation of AD curve to AD2 c. By remaining at the same demand curve AD0 d. The Figure 1 is not capable to describe the above statement The correct answer is: By a relocation of AD curve to AD 1 Question 19 Correct Mark 1.00 out of 1.00 Flag question To practice e ective price discrimination, a rm must: Select one: a. have some degree of monopoly power. b. avoid detection by government regulatory agencies. c. enable the resale of goods between groups of buyers. d. calculate the utility level of each buyer in the market. The correct answer is: have some degree of monopoly power. Question 20 Correct Mark 1.00 out of 1.00 Flag question Charges that are paid for factors of production are called: Select one: a. implicit costs. b. opportunity costs. c. xed costs. d. explicit costs. The correct answer is: explicit costs. Question 21 Correct Mark 1.00 out of 1.00 Flag question The XYZ Company is a pro t-maximizing rm with a monopoly in the production of pennants. The rm sells its pennants for $10 each. We can conclude that the XYZ Company is producing a level of output at which: Select one: a. average total cost equals $10. b. average total cost is greater than $10. c. marginal revenue equals $10. d. marginal cost equals marginal revenue. The correct answer is: marginal cost equals marginal revenue. Finish review ◄ Self-Quiz Unit 6 - Chapter 22 Jump to... Unit 5 Written Assignment Solution ► Disclaimer Regarding Use of Course Material - Terms of Use University of the People is a 501(c)(3) not for pro t organization. Contributions are tax deductible to the extent permitted by law. Copyright © University of the People 2020. All rights reserved. ...
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