Practice Final

A  $60

B  160

C  None of these is correct.

D  200

E  180

F  250

A  $200, $275

B  All of these prices would work.

C  $275, $290

D  None of these prices would work

E  $350, $550

A  FALSE

B  TRUE

A  decreases the quantity demanded for that good

B  increases the supply of that good.

C  increases the quantity supplied of that good.

D  decreases the demand 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  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

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  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.

A  42

B  37

C  50

D  15

E  7

F  23

A  inelastic goods

B  inferior goods

C  complements, such as pasta and pasta sauce

D  substitutes, such as iphones and android phones

A  $50

B  $60

C  $65

D  $35

E  $55

F  None of these is correct.

A  FALSE

B  TRUE

A  TRUE

B  FALSE

A  FALSE

B  TRUE

A  Economies of Scale, Rising LRAC

B  Rising LRAC ,Diseconomies of Scale

C  Constant Returns to Scale, Economies of Scale

D  Constant Returns to Scale, Falling LRAC

A  FALSE

B  TRUE

A  $400

B  $900

C  $450

D  $650

E  $0

F  $250

A  Chicken salad sandwiches

B  Food in general

A  a few dominant firms.

B  one firm.

C  two firms.

D  many firms.

A  All of these are correct answers.

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

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

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

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

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

A  monopolistic competition

B  perfect competition

C  duopoly

D  monopoly

E  oligarchy

F  All of these are types of industries.

A  higher prices and lower output.

B  higher prices and higher output.

C  lower prices and higher output.

D  lower prices and lower output.

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

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

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

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

A  TRUE

B  FALSE

A  $1599.

B  $800.

C  $0.

D  None of these is correct.

E  $1.

A  TRUE

B  FALSE

A  6 wood tables, 8 wood tables

B  2 wood tables

C  12 wood tables

D  All of these is correct.

A  40 printers

B  1/6 printer

C  1/4 or .25 printer

D  4 wood tables

E  4 printers

F  20 printers

A  8 Small dogs

B  12 Small dogs

C  3 Small dogs

D  None of these is correct.

E  1 Small dog

F  2 Small dogs

A  TRUE

B  FALSE

A  TRUE

B  FALSE

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

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 has many substitutes

C  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

D  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

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 is a necessity

A  inferior and substitutes

B  variable and fixed

C  average and inferior

D  substitutes and variable