Practice Final

A  200

B  180

C  160

D  $60

E  250

F  None of these is correct.

A  All of these prices would work.

B  $350, $550

C  $200, $275

D  $275, $290

E  None of these prices would work

A  FALSE

B  TRUE

A  decreases the quantity demanded for that good

B  increases the quantity supplied of that good.

C  increases the supply 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.
economic property is privately (individually) owned and controlled.

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  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

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.
decisions are decentralized and made by individual entrepreneurs

A  15

B  42

C  7

D  37

E  23

F  50

A  inferior goods

B  inelastic goods

C  substitutes, such as iphones and android phones

D  complements, such as pasta and pasta sauce

A  $65

B  $60

C  $35

D  None of these is correct.

E  $55

F  $50

A  TRUE

B  FALSE

A  FALSE

B  TRUE

A  TRUE

B  FALSE

A  Constant Returns to Scale, Falling LRAC

B  Rising LRAC ,Diseconomies of Scale

C  Constant Returns to Scale, Economies of Scale

D  Economies of Scale, Rising LRAC

A  TRUE

B  FALSE

A  $0

B  $250

C  $650

D  $400

E  $450

F  $900

A  Food in general

B  Chicken salad sandwiches

A  one firm.

B  two firms.

C  many firms.

D  a few dominant firms.

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 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  duopoly

B  oligarchy

C  monopolistic competition

D  monopoly

E  All of these are types of industries.

F  perfect competition

A  lower prices and lower output.

B  lower prices and higher output.

C  higher prices and lower output.

D  higher prices and higher output.

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

A  FALSE

B  TRUE

A  None of these is correct.

B  $0.

C  $800.

D  $1599.

E  $1.

A  TRUE

B  FALSE

A  2 wood tables

B  All of these is correct.

C  12 wood tables

D  6 wood tables, 8 wood tables

A  20 printers

B  4 wood tables

C  40 printers

D  4 printers

E  1/6 printer

F  1/4 or .25 printer

A  12 Small dogs

B  None of these is correct.

C  3 Small dogs

D  8 Small dogs

E  2 Small dogs

F  1 Small dog

A  TRUE

B  FALSE

A  TRUE

B  FALSE

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  average and inferior

B  inferior and substitutes

C  variable and fixed

D  substitutes and variable