Practice Final

A  $60

B  200

C  180

D  250

E  160

F  None of these is correct.

A  $275, $290

B  $200, $275

C  None of these prices would work

D  $350, $550

E  All of these prices would work.

A  TRUE

B  FALSE

A  increases the quantity supplied of that good.

B  decreases the demand for that good.

C  increases the supply of that good.

D  decreases the quantity demanded for that good

A  FALSE

B  TRUE

A  economic property is collectively (centrally) owned and controlled
there are few choices of different consumer goods.
unemployment and job instability are not issues; everyone is guaranteed a job.
decisions are decentralized and made by individual entrepreneurs

B  economic property is collectively (centrally) owned and controlled
there are few choices of different consumer goods.
unemployment and job instability are not issues; everyone is guaranteed a job.
there are many choices of consumer goods.
income inequality is part of the system.

C  economic property is collectively (centrally) owned and controlled
there are few choices of different consumer goods.
unemployment and job instability are not issues; everyone is guaranteed a job.
economic property is privately (individually) owned and controlled.

D  income inequality is part of the system.
there are many choices of consumer goods.
there is constant competition and discovery of new technologies.
economic property is privately (individually) owned and controlled.
decisions are decentralized and made by individual entrepreneurs

A  15

B  42

C  50

D  7

E  37

F  23

A  substitutes, such as iphones and android phones

B  complements, such as pasta and pasta sauce

C  inferior goods

D  inelastic goods

A  $35

B  None of these is correct.

C  $55

D  $65

E  $50

F  $60

A  TRUE

B  FALSE

A  FALSE

B  TRUE

A  TRUE

B  FALSE

A  Constant Returns to Scale, Falling LRAC

B  Economies of Scale, Rising LRAC

C  Constant Returns to Scale, Economies of Scale

D  Rising LRAC ,Diseconomies of Scale

A  TRUE

B  FALSE

A  $400

B  $450

C  $0

D  $900

E  $250

F  $650

A  Chicken salad sandwiches

B  Food in general

A  a few dominant firms.

B  many firms.

C  two firms.

D  one firm.

A  Mario’s Profit is $5 and Shannon’s Consumer Surplus is $5.

B  All of these are correct answers.

C  Total Trade Gains (Social Surplus) = $50. and Shannon’s Consumer Surplus is $5.

A  The seller is more self-interested. That’s why we call some companies “greedy.”

B  They are equally self-interested. The seller will try to sell to the highest bidder, and the buyer will buy from the lowest offer.

C  The buyer is more self-interested. That’s why we call some buyers “stingy” or “cheap.”

A  oligarchy

B  monopoly

C  duopoly

D  perfect competition

E  All of these are types of industries.

F  monopolistic competition

A  lower prices and lower output.

B  higher prices and higher output.

C  lower prices and higher output.

D  higher prices and lower output.

A  a baseball hat, a cold beer, and a tee shirt

B  a light house, a fire station, and a highway

C  a highway, a cold beer, and a tee shirt

D  a light house, a cold beer, and a tee shirt

A  FALSE

B  TRUE

A  $1599.

B  $0.

C  $800.

D  None of these is correct.

E  $1.

A  FALSE

B  TRUE

A  All of these is correct.

B  2 wood tables

C  6 wood tables, 8 wood tables

D  12 wood tables

A  4 wood tables

B  40 printers

C  20 printers

D  4 printers

E  1/4 or .25 printer

F  1/6 printer

A  3 Small dogs

B  12 Small dogs

C  8 Small dogs

D  1 Small dog

E  None of these is correct.

F  2 Small dogs

A  TRUE

B  FALSE

A  FALSE

B  TRUE

A  it’s considered a large (major) expense to the consumer
the time period available for its purchase is long
the definition of the “market” for this good is narrow
it is a luxury
it has many substitutes

B  it has few or no substitutes
the time period available for its purchase is short
it’s considered a small (minor) expense to the consumer
it is a necessity

C  the definition of the “market” for this good is broad

D  it has few or no substitutes
the time period available for its purchase is short
it’s considered a small (minor) expense to the consumer
it is a necessity

E  it has few or no substitutes
the time period available for its purchase is short
it’s considered a small (minor) expense to the consumer
it has many substitutes

A  inferior and substitutes

B  average and inferior

C  variable and fixed

D  substitutes and variable