Refer to Scenario 7.3. Which of the following combinations of inputs is on the isoquant to produce 400 units of output? A) L = 0, K = 400 B) L = 400, K = 0 C) L = 100, K = 100 D) all of the above E) A and B, but not C […]
Date: September 9th, 2020
Refer to Figure 9.8. If free trade in sugar is allowed, consumer surplus will be A) $175. B) $250. C) $30,625. D) $61,250. E) $62,500. ANSWER E
Date: September 9th, 2020
Suppose the current stock of greenhouse gases in the atmosphere is 100 million tons, the stock dissipation rate is 0.02, and we will emit 4 million tons into the atmosphere this year. What is the stock level of greenhouse gases expected to be for next year? A) 98 million tons B) 100 million tons C) […]
Date: September 9th, 2020
The key disadvantage of the kinked-demand model is that it: A) explains why firms may collude, but it does not explain how they interact. B) does not explain why prices may be rigid in an oligopoly. C) requires the assumptions of perfect competition. D) only holds under price leadership. ANSWER B
Date: September 9th, 2020
All points within the production possibilities frontier are A) unattainable. B) efficient. C) inefficient. D) profitable. ANSWER C
Date: September 9th, 2020
What is TRUE about every point along a production possibilities frontier? A) Both people are maximizing utility. B) It is impossible to increase production of either good. C) All allocations are efficient. D) It includes some unattainable points. ANSWER C
Date: September 9th, 2020
If the factor supply curve facing a monopolist is the market supply curve, and if the market supply curve is an upward sloping straight line, the marginal expenditure curve A) lies below the market supply curve. B) lies above the market supply curve. C) is the market supply curve. D) crosses the market supply curve […]
Date: September 9th, 2020
Refer to Scenario 12.2. Suppose that the marginal cost falls such that: MC = Q – 10 What is the profit maximizing price? A) 205.72 B) 240 C) 210 D) all of the above E) none of the above ANSWER C
Date: September 9th, 2020
Which of the following is a condition for efficiency in the output market? A) MRT = MPL/MPK B) The marginal rate of substitution is the same for all customers. C) The marginal rate of technical substitution must be the same for all producers. D) The marginal rate of transformation must equal the marginal rate of […]
Date: September 9th, 2020
Refer to Figure 9.8. In order to eliminate international trade in sugar altogether, this country would have to impose a quota of A) 0 tons. B) 200 tons. C) 300 tons. D) 350 tons. E) 500 tons. ANSWER A
Date: September 9th, 2020
