Which of the following is (are) true?
a. Accounting costs generally understate economic costs
b. Accounting profits generally overstate economic profits
c. In the absence of any opportunity costs, accounting profits equal economic profits
d. All of the statements associated with this question are correct
Answer:

The law of demand states that, holding all else constant:
a. As price falls, demand will fall also
b. As price rises, demand will also rise
c. Price has no effect on quantity demanded
d. As price falls, quantity demanded rises
Answer:

Good Y is a complement to good X if an increase in the price of good Y leads to
a. An increase in the demand for good X
b. An increase in the supply for good X
c. A decrease in the demand for good X
d. A decrease in the supply for good X
Answer:

If firms expect prices to be higher in the future and the product is not perishable, then
a. The current supply curve shifts to the left
b. The current supply curve shifts to the right
c. Producers produce more output to hold back for the future
d. None of the statements associated with this question are correct
Answer:

If firms expect prices to be higher in the future and the product is not perishable, then
a. The current supply curve shifts to the left
b. The current supply curve shifts to the right
c. Producers produce more output to hold back for the future
d. None of the statements associated with this question are correct
Answer:

Demand tends to be
a. More elastic in the short-term than in the long-term
b. More inelastic in the short-term than in the long-term
c. Equally elastic in the short-term and in the long-term
d. Neither more elastic, more inelastic nor equally elastic than in the short-term and in the long-term
Answer:

Suppose QXd = 10,000 - 2 PX + 3 PY - 4.5M , where PX = $100, PY = $50, and M = $2,000. How much of good X is consumed?
a. 100 units
b. 500 units
c. 1,100 units
d. 950 units
Answer:

The difference between a price decrease and an increase in income is that
a. A price decrease does not affect the consumption of other goods while an increase in income does
b. An increase in income does not affect the slope of the budget line while a decrease in price does change the slope
c. A price decrease decreases real income while an increase in income increases real income
d. A price decrease leaves real income unchanged while an increase in income increases real income
Answer:

At the point of consumer equilibrium the slope of the budget line is equal to the:
a. Market rate of substitution
b. Indifference curve
c. Marginal rate of substitution
d. Consumer preference
Answer:

What are the advantages to a firm of selling gift certificates?
a. Greater quantity sold if your good is a normal good
b. Greater quantity if your good is an inferior good
c. Reduced strain on the refund department and greater quantity sold if your good is a normal good
d. Reduced strain on the refund department and greater quantity if your good is an inferior good
Answer:

It is profitable to hire units of labor as long as the value of marginal product
a. Is less than wage
b. Exceeds average product
c. Equals price
d. Exceeds wage
Answer:

With a linear production function there is a
a. Perfect complementary relationship between all inputs
b. Perfect substitutable relationship between all inputs
c. Fixed-proportions relationship between all inputs
d. Variable-proportions relationship between all inputs
Answer:

When there are economies of scope between two products which are separately produced by two firms, merging into a single firm can
a. Accomplish an increase in sales
b. Accomplish a reduction in costs
c. Lead to an increase in cost
d. Lead to a reduction in sales
Answer:

The disadvantage of vertical integration is that
a. Relationship-specific exchange may cause holdup
b. Long-term contracts may be inflexible
c. The principal-agent problem causes shirking
d. Firms no longer specialize in what they do best
Answer:

An increase in the likelihood of a dismissal
a. Raises productivity at an increasing rate
b. Raises productivity at a decreasing rate
c. Decreases productivity at a decreasing rate
d. Decrease productivity at an increasing rate
Answer:

The solutions to the principal-agent problem ensures that the firm is operating
a. On the production function
b. Above the production function
c. Below the production function
d. Above the isoquant curve
Answer:

Which of the following kinds of market structure are not associated with market power:
a. Oligopoly
b. Perfect competition
c. Monopolistic competition
d. Perfect competition and monopolistic competition
Answer:

The causal view of the industry believes that:
a. Market structure causes firms to behave in a certain way
b. Market performance causes firms to have a certain structure
c. Market performance causes firms to behave in a certain way
d. Behavior causes firms to have a certain structure
Answer: