Eco Study Question

The affordable bundle that yields the greatest satisfaction to the consumer is help the maximum bundle. the equilibrium consumption bundle. the permissible purchasing bundle. the most popular bundle. Given that income is $500 and PX = $20 and PY = $5, what is the market place rate of electric switch betwixt dandys X and Y? help one C. 4. -20. 25. The budget set defines the combinations of severe X and Y that final result atomic number 18 desirable to the consumer. atomic number 18 affordable to the consumer. maximizes consumers utility. maximizes suppliers pro contact. The difference between a legal injury slack and an annex in income is that dissolving agent A expense cliff does not affect the consumption of other erects plot of ground an gain in income does. An growing in income does not affect the list of the budget line temporary hookup a fall in harm does change the slope. A price decrease decreases real income time an change magnitude in income accessions real income. A price decrease leaves real income unchanged while an outgrowth in income growths real income. All else held ever knowing, as additional firms enter an industry function more siding is available at each accustomed price. less make is available at each granted price. the corresponding product is available at each given price. output could increase or decrease at each given price. The law of take up states that, holding alone else constant response as price f all(prenominal)s, pack forget fall also. as price rises, shoot allow also rise. price has no effect on measurement demanded. as price falls, bar demanded rises. The economic principle that obtainrs are willing to take more output when price is high is depicted by the tell upwardly slope of the return curve. extreme steepness of the supply curve. d sustainward slope of the supply curve. interaction of the supply and demand curves. Good X is a normal ethical if an increase in income leads to Answer an increase in the supply for good X. an increase in the demand for good X. a decrease in the demand for good X. a decrease in the supply for good X. If there are a few(prenominal) close substitutes for a good, demand tends to be relatively Answer elastic. inelastic. unitary elastic. incomplete elastic, inelastic nor unitary elastic. Which of the pursuance is used to determine the statistical signifi tail endce of a regression coefficient?Answer t-statistic. F-statistic. R-square. adjusted R-square. strike that the price snap fastener of demand is -0. 75 for a certain firms return. If the firm lowers price, the firms managers can expect centre revenue to Answer (lower than 1 so its inelastic) decrease increase remain constant either increase or remain constant depending upon the size of the price decrease. Assume that the price elastici ty of demand is -2 for a certain firms product. If the firm raises price, the firms managers can expect keep down revenue to Answer Decrease Increase live constant Either increase or remain constant depending upon the size of the price increase. What is the marginal approach of producing the fifth unit? Answer 270. 110. 50. 0. Scarce resources are ultimately allocated toward the action of goods most wanted by social club because Answer firms attempt to maximize profits. they are most efficiently utilized in these areas. consumers demand nickel-and-dime(prenominal) goods and services. managers are benevolent. The additional personify incurred by using an additional unit of the managerial discover variable is defined as the Answer total cost. net cost. net gather. marginal cost. Which is the correct bid about the relationship between government and the market? Answer regimen should intervene on the consumers behalf. Government should intervene on the manufacturing businesss behalf. Government should not intervene on any partys behalf. Government often plays a role in disciplining the market process. Suppose the considerable- reckoning average cost curve is U-shaped. When LRAC is in the increase stage, there exist Answer economies of scope. diseconomies of scope. economies of scale. diseconomies of scale. Fixed cost exist only in Answer The long run. Capital intensive markets. The short run. Labor intensive markets. If the marginal product per clam spent on chapiter is less than the marginal product per dollar spent on get, then in put up to play down costs the firm should use Answer less chapiter and more labor. less labor and more seat of government. less labor and less capital. more labor and more capital. Suppose the marginal product of labor is 10 and the marginal product of capital is 8.If the wage rate is $5 and the price of capital is $2, then in o rder to minimize costs the firm should use Answer more capital and less labor. more labor and less capital. passable mensurations of labor and capital. none of the statements associated with this question are correct. A price decrease causes a consumers real income to Answer increase. decrease. remain unchanged. decrease or increase depending on the size of the price change. The idea that a consumer is limited to selecting a bundle of goods that is affordable is captured by the Answer budget constraint. indifference curve. consumer equilibrium. price changes. Suppose market demand and supply are given by Qd = 100 2P and QS = 5 + 3P. If a price jacket crown of $15 is imposed, Answer there will be a superfluous of 40 units. there will be neither a surplus or shortage. there will be a shortage of 40 units. there will be a shortage of 20 units. The minimum legal price that can be charged in a market is Answer a price floor. a pric e ceiling. non-pecuniary price. full economic price. Suppose that good X is a substitute for good Y.Then an increase in the price of good Y leads to Answer an increase in the demand of good X. a decrease in the demand of good X. a decrease in the supply of good X. an increase in the supply of good X. In a competitive market, the market demand is Qd = 60 6P and the market supply is Qs = 4P. A price ceiling of $3 will result in a Answer shortage of 30 units. shortage of 15 units. surplus of 30 units. surplus of 12 units As the usage of an stimulant drug increases, marginal product Answer initially increases then begins to decline. initially decreases then begins to increase. consistently decreases. consistently increases. Costs that are forever lost later they induce been paid are Answer Production costs. Fixed costs. Sunk costs. Variable costs. The maximum amount of output that can be produced with K units of capital and L unit s of labor is the Answer Production function. technological constraint. Research and development schedule. Total product. An isocost line Answer represents the combinations of w and K that cost the firm the same amount of money. represents the combinations of K and L that cost the firm the same amount of money. represents the combinations of r and w that cost the firm the same amount of money. has a convex shape. Demand is more inelastic in the short-run because consumers Answer are impatient. have no time to find available substitutes. are present-oriented. are neither impatient, have no time to find available substitutes nor are present-oriented. Which of the following factors would not affect the own-price elasticity of a good? Answer Time. Price of an input signal. Available substitutes. Expenditure share. Use the figure above to encipher the income elasticity of demand when income increases from $25,000 to $30,000. Answer -0. 10 -1. 10 0. 1818 0. 20 1. 10 ? As a rule-of-thumb, a parameter estimate is statistically different from zero when the absolute treasure of the t-statistic is Answer zero. less than one. great than or correspond to one. greater than or tolerable to two. In order to maximize net benefits, firms should produce where Answer total benefits constitute total costs. profits are zero. marginal cost is minimized. marginal benefits equal marginal costs Scarce resources are ultimately allocated toward the production of goods most wanted by society because Answer firms attempt to maximize profits. they are most efficiently utilized in these areas. consumers demand inexpensive goods and services. managers are benevolent. Generally when calculating profits as total revenue minus total costs, report profits are larger than economic profits because economists take into account Answer only obvious costs. only implicit costs. both explici t and implicit costs. both types of profits are always equal because they account for the same costs. To an economist, maximizing profit is Answer maximizing the value of the firm. maximizing the current years profits. minimizing the eternal total costs. minimizing the future risks At the point of consumer equilibrium the slope of the budget line is equal to the Answer market rate of substitution. indifference curve. marginal rate of substitution. consumer preference. If the price of good X increases, what will fade to the budget line?Answer It will have a parallel shift inward. It will have a parallel shift outward. It will become steeper. It will become flatter. The possible goods and services a consumer can afford to consume represents the Answer consumer behavior. consumer preferences. consumer status. consumer opportunities. At what level of output does marginal cost equal marginal revenue? Answer 1. 2. 3. 4. If marginal benefits exceed marginal costs, it is profitable to Answer increase Q. decrease Q. stay at that level of Q. all of the statements associated with this question are correct The change in total output attributable to the last unit of an input is the Answer Total product. Average product. marginal product. Marginal return. The combinations of inputs that produce a given level of output are depicted by Answer indifference curves. Budget lines. Isocost curves. Isoquants. ? Suppose the demand for good X is given by Qdx = 20 4Px + 2Py + M. The price of good X is $5, the price of good Y is $15, and income is $150. Given these prices and income, how much of good X will be purchased?Answer 160. 180. 220. None of the statements associated with this question are correct. Which of the following pairs of goods are probably complements? Answer televisions and roller skates. stock-still yogurt and ice cream. steak and chicken . hamburgers and ketchup. A change in income will not lead to Answer a movement along the demand curve. a leftward shift of the demand curve. a rightward shift of the demand curve. all of the statements associated with the question are correct. Suppose market demand and supply are given by Qd = 100 2P and QS = 5 + 3P.The equilibrium price is Answer $15. $19. $17. $20. The mensuration consumed of a good is relatively unresponsive to changes in price whenever demand is Answer elastic. unitary. falling. inelastic. In the figure above, what is the point price elasticity of demand when price is $60? Answer -0. 50 -0. 75 -1. 00 -1. 60 -2. 00 Demand is perfectly elastic when the absolute value of the own price elasticity of demand is Answer zero. one. infinite. unknown. Which of the following provides a measure of the overall fit of a regression?Answer t-statistic. F-statistic and R-Square. p-value. the t-stati stic and the p-value. When marginal revenue is positive, demand is Answer Selected Answer elastic. The short run response of quantity demanded to a change in price is usually Answer Selected Answer less(prenominal) than the long run response. Suppose demand is given by Q xd = 50 4Px + 6Py + Ax, where Px = $4, Py = $2, and Ax = $50. What is the quantity demanded of good x? Answer Selected Answer 96. A price elasticity of zero corresponds to a demand curve that is Answer Selected Answer VerticalEconomics Answer Selected Answer exists because of the scarcity. Good A is an inferior good, an increase in income leads to Answer Selected Answer a decrease in the demand for good A. A price ceiling is Answer Selected Answer the maximum legal price that can be charged in a market. A floor price is Answer Selected Answer the minimum legal price that can be charged in a market. Suppose the demand for X is given by Qxd = 100 2PX + 4PY + 10M + 2A, where PX represents the price of good X, PY is the price of good Y, M is income and A is the amount of advertising on good X.Based on this information, we know that good X is a Answer Selected Answer substitute for good Y and a normal good. The law of supply states that, holding all else constant, as the price of a good falls Answer Selected Answer quantity supplied falls. If the marginal product per dollar spent on capital is less than the marginal product per dollar spent on labor, then in order to minimize costs the firm should use Answer Selected Answer less labor and more capital. Which of the following costs could a firm that wants to remain in business avoid if it halted current production? Answer Selected AnswerVariable costs. The marginal rate of technical substitution Answer Selected Answer is the absolute value of the slope of the isoquant. Accounting profits are Answer Selected Answer total revenue minus total cost. Which of the following is an implicit cost to a firm that produces a good or service? Answer Select ed Answer foregone profits of producing a different good or service. The elasticity that measures the responsiveness of consumer demand to changes in income is the Answer Selected Answer income elasticity. Demand tends to be Answer Selected Answer more inelastic in the short-term than in the long-term.What is/are the important things that must be developed when characterizing consumer behavior? Answer Selected Answer Consumer preferences and consumer opportunities. When quantity demanded exceeds quantity supplied Answer Selected Answer the price is below the equilibrium price. Graphically, an increase in the number of vegetarians will cause the demand curve for Tofu (a meat substitute) to Answer Selected Answer shift rightward. Which of the following can explain an increase in the demand for housing in retirement communities? Answer Selected Answer An increase in the population of the elderly.Demand shifters do not include Answer Selected Answer the price of the good. If the price o f an input rises, producers are willing to produce Answer Selected Answer less output at each given price. If marginal costs exceed marginal benefits, then Answer Selected Answer the firm should decrease its production level. The optimal amount of studying is determined by comparing Answer Selected Answer marginal benefit and the marginal cost of studying. Each week Bill buys exactly 7 bottles of cola regardless of its price. Bills own price elasticity of demand for cola in absolute value is AnswerSelected Answer less than one. The long-run is defined as Answer Selected Answer the horizon in which the manager can adjust all factors of production. Economies of scale exist whenever long-run average costs Answer Selected Answer decrease as output is increased. Constant returns to scale exist when long-run average costs Answer Selected Answer remain constant as output is increased. Consumers adjust their purchasing behavior so that Answer Selected Answer the ratio of prices they repai r equals their marginal rate of substitution. The demand curve for a good is horizontal when it is Answer Selected Answer perfectly elastic good. The cross price elasticity of demand between goods X and Y is -3. 5. If the price of X decreases by 7%, the quantity demanded of Y will Answer Selected Answer decrease by 24. 5%. If the absolute value of the own price elasticity of demand is greater than one, then demand is say to be Answer Selected Answer elastic. If consumers expect future prices to be higher Answer Selected Answer stockpile will happen when products are durable in nature. The market supply curve indicates the total quantity all producers in a competitive market would produce at each price, AnswerSelected Answer allowing input price to vary. Technological advances will cause the supply curve to Answer Selected Answer shift to the right. The demand curve for a good is horizontal when it is Answer Selected Answer a perfectly elastic good. The market supply curve indicate s the total quantity all producers in a competitive market would produce at each price, Answer Selected Answer holding all supply shifters fixed. When government imposes a price floor above the market price, the result will be that Answer Selected Answer surpluses occur. If income increases, the budget lineAnswer Selected Answer shifts to the right. The value of marginal product of an input is the value of the Answer Selected Answer output produced by the last unit of an input. Which of the following conditions is true when a producer minimizes the cost of producing a given level of output? Answer Selected Answer The marginal product per dollar spent on all inputs is equal and the MRTS is equal to the ratio of the quantity of inputs. Since most consumers spend very little on salt, a small increase in the price of salt will Answer Selected Answer not reduce quantity demanded by very much.The elasticity which shows the responsiveness of the demand for a good due to changes in the pric e of a related good is the Answer Selected Answer cross-price elasticity. Good X is a normal good if an increase in income leads to Answer Selected Answer an increase in the demand for good X. If A and B are complements, an increase in the price of good A would Answer Selected Answer lead to a decrease in demand for B. For a wood furniture manufacturer, an increase in the cost of lumber will cause the supply curve toAnswer Selected Answer shift to the left.Which of the following conditions is true when a producer minimizes the cost of producing a given level of output? Answer Selected Answer The marginal product per dollar spent on all inputs is equal. The long-run is defined as Answer Selected Answer the horizon in which the manager can adjust all factors of production. What is the horizontal intercept of the budget line, given that M = $1,000, PX = $50, and PY = $40? Answer Selected Answer 20. 0. Given that income is $750 and PX = $32 and PY = $8, what is the market rate of substi tution between goods X and Y? Answer Selected Answer 4