1. There is a negative relationship between two variables if: a. they move in op
ID: 1100450 • Letter: 1
Question
1. There is a negative relationship between two variables if:
a. they move in opposite directions
b. they move in the same direction
c. one variable changes and the other does not
d. neither variable moves
2. A firm p[roduces its product using both capital and labor. When it does not change its capital usage, but doubles its labor input, its output increases by less than 50 percent. Which of the following is the most likely explanation of this finding?
a. The principle of opportunity cost
b. The principle of diminishing returns
c. The marginal principle
d. The spillover principle
3. The price of iPhones has fallen dramatitically. Which of the following is likely to happen?
a. The quantity of iPhones supplied will decrease
b. The quantity of iPhones supplied will increase
c. The supply of iPhones will decrease
d. The suplly of iPhones will increase
4. If the demand for school ball caps is inelastic, an increase in price will result in:
a. a decrease in profits
b. an increase in total revenue
c. a decrease in total revenue
d. an increase in the quantity demanaded
5. An electrician licensing program in the state of North Carolina requires each electrician to obtain a license and renew it each year. Which of the following is a results of having the licensing program in Norht Carolina?
a. A decrease in total surplus
b. Excess demand for electrical service
c. An increase in the quality of electrician
d. All of the above are a result of the licensing program
6. The self-interest theory of government was suggested by:
a. James Buchanan
b. Charles M. Tiebout
c. bureacrats
d. the European Union
7. suppose that the only input used in the generation of solar energy is sunlight, which has a zero cost. The average total cost of producing electricity is:
a. zero
b. equal to the marginal cost
c. equal to the average fixed cost
d. immeasurably high
8. When a firm increases output and the costs rise disproportionately slower, then the long-run average cost curve is......................and the firm is experiencing.....................
a. horizontal, constant returns to returns to scale
b. downward sloping, constant returns to scale
c. upward sloping, diseconomies of scales
d. downward sloping, economies of scale
9. Limit pricing occurs when a firm sets price:
a. equal to marginal cost
b. equal to average cost
c. at different amounts for different groups of consumers
d. so low that other firms are prevented from entering the market.
10. Which of following statements about featherbedding is corect?
a. It could increase production costs, resulting in higher prices for products
b. The quantity of labor demanded by firms could actually decrease
c. it could lead to a lower wage and smaller employment in the long-run
d. All the Above
Explanation / Answer
1.a. they move in opposite directions
2.b. The principle of diminishing returns
3.c. The supply of iPhones will decrease
4.d. an increase in the quantity demanaded
5.a. A decrease in total surplus
6.a. James Buchanan
7.c. equal to the average fixed cost
8.c. upward sloping, diseconomies of scales
9.d. so low that other firms are prevented from entering the market.
10.a. It could increase production costs, resulting in higher prices for products
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.