Economics and Correct Answer

Topics: Economics, Marginal cost, Perfect competition Pages: 9 (1242 words) Published: October 11, 2014
Question 1
10 out of 10 points

_____ is an online venue where businesses and individuals can hedge their uncertainty about whether legislation that affects them will be enacted. Answer

Selected Answer:

The American Civics Exchange
Correct Answer:

The American Civics Exchange

Question 2
10 out of 10 points

The assumption of rationality in economics implies that:
Answer

Selected Answer:

people make choices with an eye toward attaining objectives they have chosen. Correct Answer:

people make choices with an eye toward attaining objectives they have chosen.

Question 3
10 out of 10 points

Measuring important concepts in economics is difficult and some important economic phenomena are still beyond the understanding of economists. Thus economics is called a(n): Answer

Selected Answer:

inexact science.
Correct Answer:

inexact science.

Question 4
0 out of 10 points

The shares of the economic value of a particular transaction that accrues to the seller and the buyer depend on: Answer

Selected Answer:

the buyer’s opportunity cost.
Correct Answer:

the relative bargaining powers of the two parties.

Question 5
10 out of 10 points

Megan, an analyst in Ronald’s team called in sick on a day when 4 projects were due for completion. Ronald divided Megan’s work between the remaining six team-members. Which form of governance is being used here? Answer

Selected Answer:

Hierarchy
Correct Answer:

Hierarchy

Question 6
10 out of 10 points

If the transaction between you and the seller takes place at a price that equals your valuation of the product, then: Answer

Selected Answer:

the entire economic value created by the transaction goes to the seller. Correct Answer:

the entire economic value created by the transaction goes to the seller.

Question 7
10 out of 10 points

Starting from a pure exchange equilibrium, an increase in the demand for a commodity will result in: Answer

Selected Answer:

a rise in the market price.
Correct Answer:

a rise in the market price.

Question 8
10 out of 10 points

In a “pure exchange” market:
Answer

Selected Answer:

there is no production and people trade money for goods that already exist. Correct Answer:

there is no production and people trade money for goods that already exist.

Question 9
10 out of 10 points

If two commodities are complements then:
Answer

Selected Answer:

the cross-price elasticity will be negative.
Correct Answer:

the cross-price elasticity will be negative.

Question 10
0 out of 10 points

The gap between average total cost and average variable cost: Answer

Selected Answer:

is high at high levels of production.
Correct Answer:

declines as output expands.

Question 11
10 out of 10 points

Let the marginal product of capital (MPK ) be 6; the marginal product of labor (MPL) be 2; the price of labor is given by $10. What will be the price of capital such that the isocost and the isoquant are tangent to each other? Answer

Selected Answer:

$30
Correct Answer:

$30

Question 12
10 out of 10 points

Which of the following cases exhibit increasing returns to scale? Answer

Selected Answer:

Output increases by 6 percent when inputs are increased by 5 percent. Correct Answer:

Output increases by 6 percent when inputs are increased by 5 percent.

Question 13
0 out of 10 points

Assume that the world price of Good A is $8 per unit while its domestic price is $6, and the marginal cost incurred by domestic producers for producing one unit of Good A is $5. If the government imposes a tax of $3 per unit on domestic producers, which of the following situations will be observed? Answer

Selected Answer:

The...
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