1 out of 1 points
Which of the following statements is false?
To an economist, the resource capital consists of unproduced
goods that can be turned into produced goods.
To an economist, the resource land includes natur
Final Take Home
51. When a perfectly competitive firm incurs losses, it follows that price is
a. necessarily below average total cost.
b. necessarily below average variable cost.
c. below marginal cost.
d. below marginal revenue.
52. Equilibrium price is
Describe the relationship that exists between price elasticity of demand and total revenue. Give a
numerical example to help support your answer.
Price elasticity of demand is the response of quantity demanded due to a price change while
the total revenue
Explain what an economist means by the phrase "making decisions at the margin." Give your own
unique example to help support your answer.
Mr. Maclan has a car. He is a Software Engineer. One day, his car broke down so he called his friend,
Mike, who is a
Essay #2: Explain the difference between a change in supply and a change in quantity supplied. Give your
own unique example to help support your answer.
Change in supply refers to the situation where producers of certain products or services change the
As a new tutor, I have encountered different situations that helped me improve techniques that I
use to my tutees. I believe that using strong and organized procedure is one of the strength that I
have as a tutor. I always try to see how much time is allo
Illustrated below are the total number of laborers of Albetos Taco Shop, the total
product(tacos) produced and the marginal product generated by each additional worker.
25. If both the supply and demand for computer games increase, then the equilibrium price of the games:
a. is indeterminate and the equilibrium quantity rises.
b. is indeterminate and the equilibrium quantity falls.
c. falls and the equilibrium quantity a
d. All of the above cause the production possibilities curve to shift outward.
- reduction possibilities
/ [3 curve
0 4 .5 10 Cakes
6. Refer to Exhibit 3-13. The opportunity cost of producing an additional c
b. requires the sacrice of four cupcakes in order to obtain one cake.
0. reallocatcs inputs without affecting overall levels of production.
d. increases unemployment.
10. Refer to Exhibit 313- A movement 'om Point D to Point F:
a. increases the
1. A production possibilities curve that is linear (a straight line):
a. illustrates a tradeoff in which opportunity cost of a good increases with the level of its production.
b. illustrates a tradeoff in which the opportunity cost of a good decrea
c. an uncertain eect on the price of hotel rooms, but an increase in the quantity of hotel rooms
d. an increase in the price of hotel rooms, but an uncertain effect on the quantity of hotel rooms
21. When the demand for grapes in
a. shift to the right, increasing the price of the drug.
b. shi: to the left, increasing the price of the drug.
0. shift to the right, decreasing the price of the drug.
d. shift to the left, decreasing the price of the drug.
16. A safety report
Practice Quiz: Econ 102
1. Price elasticity of demand is a measure of the responsiveness of quantity demanded to changes in
a. interest rates.
2. Ifquantity demanded rises by 10 percent as price falls by 9 percent, t
Essay #4: Explain the difference between total utility and marginal utility. Give your own hypothetical
example to help support your answer.
Total utility is the total satisfaction a consumer get from all units consumed over a
period of time. For example,
The shape of the demand curve faced by the perfectly competitive firm is horizontal. A perfectly
competitive firm faces more than one competitor. If a firm decides to sell its output higher than
the price of the market price, the consumers will then buy f
Demand & Supply Quiz
"As the price of apples goes up, the demand for apples goes down."
The author of this statement
implies that price and demand are unrelated.
uses the word "demand" when he should use the word
uses the word "dem
Law of Demand = P Qd ; P Qd
Quantity Demanded = the number of units of a good that individuals are willing and able to buy at a
Change in Quantity Demanded = movement from one point to another on the same demand curve caused
Francisco Javier Vargas
Chapter 1 Questions
Economics 101 T,TH 9:30-10:45
January 27, 2015
1. Scarcity is the condition in which our wants are greater than the limited
resources available to satisfy those wants. Even though the United St
Chapter 3 Supply and Demand Theory Questions
1. The statement Demand refers to the willingness of buyers to purchase different
quantities of a good at different prices during a specific time period is wrong. What is
wrong with this statement is that Deman
Total Cost = Fixed Cost + Variable Cost
Average Total Cost = Average Fixed Cost + Average Variable Cost
Average Total Cost = Total Cost/Quantity or ATC = AFC + AVC
Average Fixed Cost = Fixed Cost/Quantity or AFC =
The lower the elasticity of demand for a product,
Correct the lower the elasticity of demand for the labor that produces the product.
Refer to Exhibit 12-1. What goes in blank D?
Refer to Exhibit 13-10. If the firm in the exhibit
It seems quite possible that cigarette companies concealed information about the effect of smoking
on health, causing cigarette prices to be _ and cigarette sales to be _ than would
have been the case under symmetric information.
Chapter 6 &7
If the price of good X falls and the demand for good X is elastic, then it follows that the percentage
change in quantity demanded is _ the percentage change in price, and total revenue
Correct greater than; rises
When its price is $5.25,
Refer to Exhibit 8-12 above. The numbers that go in spaces A-D, respectively, are
Correct 12, 13, 14 and 12.
Refer to Exhibit 8-5. Constant returns to scale are present between
Correct points B and C.
Marginal cost is the change in
Correct a and
Refer to Exhibit 9-10. At the profit maximizing quantity, how much does this firm earn in profits.
Refer to Exhibit 9-7. The perfectly competitive, profit-maximizing firm will produce _ units of
output and charge a price of _.
Which of the following would not result from a price ceiling (below equilibrium price)?
Correct an increase in supply
At a price of $6 the quantity demanded of good X is 150 units and the quantity supplied of good X is
350 units. The equilibri
To get started the business cycle affects everyone, from the bankers to a simple small
business. These words mean a lot because they can shake the entire stock market. A business
cycle is a term that economists use for the recurring fluctuations in the ec
EGR 310 Extra Credit Problems
Due Sun 30 Apr at midnight
1. (10 pts) You and your spouse wish to buy a house. Together you make $60,000 gross (before
taxes) per year. You loan officer said your house payment (principal and interest) cannot exceed
28% of y