Navigation » List of Schools » Pierce College » Economics » Economics 1 – Principles of Economics » Summer 2020 » Quiz
Below are the questions for the exam with the choices of answers:
Question #1
A shapes perceived demand for a price taker
B allows a firm to raise the prevailing market price
C allows a firm to sell any quantity it wishes
D shapes consumers intangible preferences
Question #2
A the firm with the increased price will have its higher profits sustained through cooperation.
B the sales of the firm that increased its price will decline sharply.
C the egos of all the top executives will eventually lead to cooperation at that higher price.
D the sales of the firm with the higher price will decline slightly.
Question #3
A each of these firms must act as a price-taker.
B demand curves can become kinked in appearance.
C each of these firms must act as a price-maker.
D collusion amongst them will most often result.
Question #4
A divide up the monopoly level of profit amongst themselves.
B both b and c above are correct.
C hold down output in the short-run.
D charge a higher price in the short-run.
Question #5
A the perceived demand curve for each firm will shift to the right.
B the perceived demand and marginal revenue curves for each firm will shift to the right.
C the perceived demand and marginal revenue curves for each firm will shift to the left.
D the marginal revenue curves for each firm will shift to the right.
Question #6
A perceived demand curve to shift to the left.
B a steeper perceived demand curve, as well as c above.
C the steeper perceived demand curve to become flatter.
D perceived demand curve to shift to the right.
Question #7
A equal to marginal cost, both in the short run and in the long run.
B equal to average cost, both in the short run and in the long run.
C equal to marginal cost, in the short run.
D equal to average cost, in the long run.
Question #8
A because the demand curve perceived by the monopolist is flatter than that of a monopolist competitor
B a monopolist competitor faces the market demand curve and a monopolist does not
C a monopolist faces the market demand curve and a monopolist competitor does not
D because the demand curve for a monopolistic competitor is upward sloping
Question #9
A A monopoly
B An oligopoly
C Collusion
D A cartel
Question #10
A upward-sloping
B flat
C U shaped
D downward-sloping
Question #11
A $3.50 or less
B $3.90 or less
C $3.40 or less
D $4.00 or less
Question #12
A abnormally high sustained profits.
B elimination of barriers to entry
C government deregulation.
D irregularly high unsustainable profits.
Question #13
A output will be too small and its price too high.
B output will be too large and its price too high.
C output will be too small and its price too low.
D output will be too large and its price too low.
Question #14
A government rules on prices, quantities, or conditions of entry in an industry
B sufficient strength to prevent or discourage potential competitors from entering the market
C a few impediments to limit new firms from operating and expanding within the market
D government regulations that provide no barriers to entry, exit, or competition
Question #15
A have a patent giving it exclusive legal rights to make, use, and sell for a limited time.
B have legal protection to prevent copying its methods of production for commercial use.
C acquire rights for its investors to produce and sell their product.
D raise prices, cut production, and realize positive economic profits.
Question #16
A a sole producer of a product for which good substitutes are lacking in a market with high barriers to entry
B a large, multinational firm that produces a single product in a narrow product class
C a firm that is very large relative to all its competitors within a narrow product class
D a sole producer of a narrowly defined product class, such as brown, Grade A eggs produced in Eagle County, Colorado
Question #17
A market forces
B technological advantages
C patent laws
D deregulation
Question #18
A lower for the smaller firms than for larger firms.
B lowest when there are a large number of producers in the industry.
C minimized at the output that maximizes the industry’s profitability.
D lowest when a single firm generates the entire output of the industry.
Question #19
A there is a single seller in a particular industry
B there are limited sellers in a particular industry
C there are a few sellers in a given industry
D there is only one seller, therefore no industry
Question #20
A monopolistic competition
B monopoly
C patent
D oligopoly
Question #21
A the firm’s demand curve will also shift to the left.
B producing less at any market price will off-set marginal cost .
C the firm’s marginal cost curve will shift to the left.
D expanding output levels at any given price will be profitable.
Question #22
A accounting profit; including opportunity cost
B accounting profit; excluding opportunity cost
C opportunity cost; including economic profit
D economic profit; excluding opportunity cost
Question #23
A short run; the quantity of output where profits are highest
B long run; methods to reduce production and shut down
C short run; profits by ignoring the concept of total cost analysis
D long run; the quantity of output where profits are highest
Question #24
A keep the business open in the short-run, and plan to expand the business in the long-run.
B raise her prices above the perfectly competitive level set by the market.
C keep the business open in the short-run, but plan to go out of business in the long-run.
D lay-off her staff, break her lease, and close the business down immediately.
Question #25
A will cause the firm to recover some of its opportunity costs
B could likely result in a notable loss of sales to competitors
C is a sure sign the firm is raising the given price in the market
D will likely cause the firm to reach its shutdown point immediately
Question #26
A will determine what price to produce at given the market demand.
B shifts marginal costs to the right enabling both to produce more at any given market price.
C can also be interpreted as shifts of their respective marginal cost curves.
D at all levels of output shifts marginal costs to the right.
Question #27
A demand curve
B average total cost curve
C supply curve
D average variable cost curve
Question #28
A 6% of output
B 12% of output
C 10% of output
D 8% of output
Question #29
A preparing to reach its shutdown point.
B considering opportunity costs.
C preparing to exit operations.
D considering capital investments.