Economics and Competitive Firm
ECO/365– Principles of Microeconomics– Final Exam Study Guide 2013
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1) If average movie ticket prices rise by about 5 percent and attendance falls by about 2 percent, other things being equal, the elasticity of demand for movie tickets is about:
B. 0.4
2) A basic difference between microeconomics and macroeconomics is that microeconomics
C. examines the choices made by individual participants in an economy, while macroeconomics considers the economy's overall performance
3) An economist who is studying the relationship between the money supply, interest rates, and the rate of inflation is engaged in
B. macroeconomic research
4) After several years of slow economic growth, world demand for petroleum began to rise rapidly in the 1990s. Much of the increase in demand was met by additional supplies from sources outside the Organization of Petroleum Exporting Countries (OPEC). OPEC, during this time, was unable to restrain output among members in its effort to lift oil prices. What best describes these events?
C. The rise in demand shifted the demand for oil to the right. As price rose, the quantity of oil supplied rose.
5) Price elasticity of demand is the:
D. percentage change in quantity demanded of a good divided by the percentage change in the price of that good
6) The distinction between supply and the quantity supplied is best made by saying that
B. supply is represented graphically by a curve and the quantity supplied as a point on that curve associated with a particular price
7) When labor is the variable input, the average product equals the
D. quantity of output divided by the number of workers
8) The increase in output obtained by hiring an additional worker is known as
B. the marginal product
9) Which of the following is the best example of a long-run decision?
A. An automobile manufacturing company is considering whether or not to invest in
Remember to check out ACCNerd.com for the latest updates!
1) If average movie ticket prices rise by about 5 percent and attendance falls by about 2 percent, other things being equal, the elasticity of demand for movie tickets is about:
B. 0.4
2) A basic difference between microeconomics and macroeconomics is that microeconomics
C. examines the choices made by individual participants in an economy, while macroeconomics considers the economy's overall performance
3) An economist who is studying the relationship between the money supply, interest rates, and the rate of inflation is engaged in
B. macroeconomic research
4) After several years of slow economic growth, world demand for petroleum began to rise rapidly in the 1990s. Much of the increase in demand was met by additional supplies from sources outside the Organization of Petroleum Exporting Countries (OPEC). OPEC, during this time, was unable to restrain output among members in its effort to lift oil prices. What best describes these events?
C. The rise in demand shifted the demand for oil to the right. As price rose, the quantity of oil supplied rose.
5) Price elasticity of demand is the:
D. percentage change in quantity demanded of a good divided by the percentage change in the price of that good
6) The distinction between supply and the quantity supplied is best made by saying that
B. supply is represented graphically by a curve and the quantity supplied as a point on that curve associated with a particular price
7) When labor is the variable input, the average product equals the
D. quantity of output divided by the number of workers
8) The increase in output obtained by hiring an additional worker is known as
B. the marginal product
9) Which of the following is the best example of a long-run decision?
A. An automobile manufacturing company is considering whether or not to invest in