Economics Comprehension assessment #1-5
Which of the following is NOT a characteristic of a perfectly competitive industry?
A downward-sloping market demand curve
A perfectly elastic demand for each firm
Each firm decides its quantity of output
Each firm produces a good slightly different from that of its competitors
Of the following, which is a perfect competitor?
AT&T stores
Local cable TV services
A tomato grower living in Florida
DeBeers, provider of more than 80% of the rough diamonds in the world
Using table 11.1 what is the marginal revenue from selling 101 units of output rather than 100?
a. $5
b. $500
c. $505
d. $0
For a perfectly competitive firm, MR always equals:
ATC
P
AVC
None of the above because MR is not always equal to the same thing.
Paul runs a shop that sells printers. Pauls business is a perfect competitor and can sell each printer for a price of $500. The marginal cost of selling one printer a day is $300, the marginal cost of selling a second printer is $400 and selling a third printer is $550. To maximize his profit, Paul should sell?
1 printer a day
2 printers a day
3 printers a day
More than three printers a day
Which of the following is NOT a characteristic of a perfectly competitive industry?
A downward-sloping market demand curve
A perfectly elastic demand for each firm
Each firm decides its quantity of output
Each firm produces a good slightly different from that of its competitors
Approximately ____________ percent of all mutual funds are open-end funds.
A) 5
B) 6
C) 30
D) 72
E) 92
1. When the market price is higher than the equilibrium price, there is:
A) surplus
B) a shortage
C) both a shortage and a surplus
D) neither a shortage nor a surplus
2. A decrease in demand means that quantity demanded falls at:
A) least one price
B) a few prices
C) most prices
D) all prices
3. if the market price is below equilibrium price, quantity demanded:
A) is less than quantity supplied
B) is equal to quantity supplied
C) is greater than quantity supplied
D) remains the same
4. At equilibrium, quantity demanded ________ equals quantity supplied.
A) always
B) usually
C) sometimes
D) never
5. When the market is above equalibrium price, the market price will be driven:
A) up by buyers
B) up by sellers
C) down by buyers
D) down by sellers
6. Changes in demand are caused by each of the following EXCEPT:
A) changes in income
B) changes in the prices of related goods and services
C) changes in tastes and preferences
D) changes in supply
7. An increase in the price of a complement will result in a/an ________ for the product.
A) decrease in quantity demanded
B) increase in the quantity demanded
C) decrease in the demand
D) increase in the demand
8. if coffee is a substitute for tea, and the price of coffee rises, what will happen?
A) demand for tea will decrease
B) demand for tea will increase
C) the quantity demanded of coffee will rise
D) the quantity demanded of tea will decrease
9. The most important determinant of the degree of elasticicity of demand is:
A) whether or not the item is a big ticket item
B) whether the item is a luxury or not
C) how many uses the product has
D) the availability of substitutes
10. If a car dealership decides to offer a rebate to reduce the pelling price of its cars and
as a result finds an increase in its total revenues, then the demand for cars from this dealership is:
A) price elastic
B) price inelastic
C) rebate inelastic
D) unit elastic
1.20 Annual Survey of Computer crimes: The computer security Institute (CSI) conducts an annual survey of computer crime at United States businesses. CSI sends survey questionnaires to computer security personnel at all U.S. corporations and government agencies. In 2006, 616 orgainizations responded to the CSI survey. Fiftytwo percent of the respondents admitted unauthorized use of computer systems at their firms during the year.
a. Identify the population of interest to CSI.
b. Identify the data-collection method used by CSI. Are there any potential biases in the method used?
c. Describe the variable used in the CSI Survey. Is it quantitative or qualitative?
d. What inference can be made from the study result?
Which of the following best characterizes changes in the U.S. long-run aggregate supply curve during the past 50 years (taking into account that the economy has acquired better technology)?
a) the long-run aggregate supply curve did not shift
b) the long-run aggregate supply curve became positively sloped
c) the long-run aggregate supply curve shifted out
d) the long-run aggregate supply curve shifted in