Mini Quizzes Pt. 2 Flashcards
What is the price elasticity of demand between 2.50 and 2.25? (2.50:0 - 2.25:25)
-19
The price elasticity of demand is:
Always negative
The price elasticity of demand between points B and C is: B(6:2) C(4:4)
-1.67
If an increase in the price of a good leads to an increase in total revenue, then:
None of the above is true: there is no info given regarding the price elasticity of supply
If demand is price elastic, it is certain that:
An increase in price will lower total revenue
If the quantity demanded of agricultural output is very unresponsive to a fall in price, the demand for agricultural output is:
Price inelastic
The price elasticity of a good will tend to be greater:
The longer the relevant time period
Utility is the:
Satisfaction consumers derive from their consumption of goods and services
Economists assume that firms seek to maximize:
Profits
Assume that 4 dozen golf balls are purchased for $12 per dozen. Consumer surplus is: (graph) 20:0 18:1 16:2 14:3 12:4 10:5
16$ (unsure???)
Regardless of whether they pay for them, people cannot be excluded from receiving the benefits of:
Public goods
A characteristic of a competitive free market is that, if external costs exist, they:
Are not reflected by the total market supply curve
All for the following are examples of external costs EXCEPT: smoke nuisance of a factory - zoning restrictions on your property - land defilement from strip mining - weeds on your next-door neighbor’s lawn
Zoning restrictions on your property
The change in total output resulting from a 1-unit increase in the quantity of a factor production used, holding the quantities of all other factors of production consultant is:
Marginal product
The short run is a period that is:
Long enough in which to vary output but not plant capacity
The costs associated with variable factors of production are _ costs and the costs associated with _ factors of production are _ costs.
Variable; fixed; fixed
Which of the following statements is a “true” statement?
The world’s food supply could be grown in a flower pot, if the law of diminishing returns did not hold!
In the first of the three ranges of production:
The marginal product curve has a positive slope
Bev’s Bakery, a donut maker, has discovered that the ratio of the marginal product of labor to the price of labor is 6.5, while the ratio of the marginal product of capital to the price of capital is 6.1. The firm has determined that it does not want to change its total costs. Bev’s Bakery should:
Use more labor and less capital
A firm increases its purchases of a factor of production in a perfectly competitive market from 10 units to 11 units. If the market price of the factor is 20$ per unit, the marginal factor cost for the eleventh unit is:
20$ (?)
A factor demand curve will shift because of:
A change in the price of a substitute factor
Which of the following statements is true?: Liesure is a normal good, Liesure is an inferior good, AOTU an increase in income will decrease the demand for leisure, the demand for leisure is perfectly inelastic
Leisure is a normal good
If the equilibrium wage in the market for bricklayers is 100$ a day, but a minimum wage for bricklayers of 130$ a day is set by the government: (graph)
3 workers who otherwise would have been employed are now unemployed
