Economics Quiz Paper
e650s07e01
Student: ___________________________________________________________________________
1. Economic profits are: A. total revenue minus total cost.
B. marginal revenue minus marginal cost.
C. total revenue minus total opportunity cost.
D. total profits of the economy as a whole. 2. Which of the following is an implicit cost to a firm that produces a good or service? A. labor costs.
B. costs of operating production machinery.
C. foregone profits of producing a different good or service.
D. costs of renting or buying land for a production site. 3. Which of the following signals to the owners of scarce resources are the best use of those resources? A. profits of businesses.
B. government regulations.
C. …show more content…
the average value of all future profits.
D. the total value of all future profits. 13. If marginal benefits exceed marginal costs, it is profitable: A. to increase Q.
B. to decrease Q.
C. to stay at that level of Q.
D. all of the above. 14. Trade will take place: A. if the maximum that a consumer is willing and able to pay is less than the minimum price the producer is willing and able to accept for a good.
B. if the maximum that a consumer is willing and able to pay is greater than the minimum price the producer is willing and able to accept for a good.
C. only if the maximum that a consumer is willing and able to pay is equal to the minimum price the producer is willing and able to accept for a good.
D. none of the above. 15. In a competitive market, the market demand is Qd = 60 - 6P and the market supply is Qs = 4P. A price ceiling of $3 will result in A. A shortage of 18 units.
B. A shortage of 30 units.
C. A surplus of 30 units.
D. A surplus of 12 units.
E. neither a shortage nor a surplus. 16. In a competitive market, the market demand is Qd = 60 - 6P and the market supply is Qs = 4P. The full economic price under a price ceiling of $3 is A. 6.
B. …show more content…
it will rise.
C. it may rise or fall.
D. it will remain the same. 29. If the price of an input rises, producers are willing to produce A. more output at each given price.
B. less output at each given price.
C. the same output at each given price.
D. none of the above. 30. Jane pays the market price of $69 for a new pair of running shoes, even though she would be happy to pay a maximum of $100 for the same pair of shoes. This is an example of the concept of A. producer surplus.
B. price ceilings.
C. full economic prices.
D. consumer surplus. 31. Suppose the demand for good X is given by Qdx = 20 - 4Px + 2Py + M. The price of good X is $5, the price of good Y is $15, and income is $150. Given these prices and income, how much of good X will be purchased?
A)160
B)180
C) 220
D) None of the above.
Answer: B
32. An excise tax of $1.00 per gallon of gasoline placed on the suppliers of gasoline, would shift the supply curve A. down by $1.00.
B. down by more than $1.00.
C. up by $1.00.
D. up by less than $1.00. 33. Assume that the price elasticity of demand is -2 for a certain firm 's product. If the firm raises price, the firm 's managers can expect total revenue to: A.
Student: ___________________________________________________________________________
1. Economic profits are: A. total revenue minus total cost.
B. marginal revenue minus marginal cost.
C. total revenue minus total opportunity cost.
D. total profits of the economy as a whole. 2. Which of the following is an implicit cost to a firm that produces a good or service? A. labor costs.
B. costs of operating production machinery.
C. foregone profits of producing a different good or service.
D. costs of renting or buying land for a production site. 3. Which of the following signals to the owners of scarce resources are the best use of those resources? A. profits of businesses.
B. government regulations.
C. …show more content…
the average value of all future profits.
D. the total value of all future profits. 13. If marginal benefits exceed marginal costs, it is profitable: A. to increase Q.
B. to decrease Q.
C. to stay at that level of Q.
D. all of the above. 14. Trade will take place: A. if the maximum that a consumer is willing and able to pay is less than the minimum price the producer is willing and able to accept for a good.
B. if the maximum that a consumer is willing and able to pay is greater than the minimum price the producer is willing and able to accept for a good.
C. only if the maximum that a consumer is willing and able to pay is equal to the minimum price the producer is willing and able to accept for a good.
D. none of the above. 15. In a competitive market, the market demand is Qd = 60 - 6P and the market supply is Qs = 4P. A price ceiling of $3 will result in A. A shortage of 18 units.
B. A shortage of 30 units.
C. A surplus of 30 units.
D. A surplus of 12 units.
E. neither a shortage nor a surplus. 16. In a competitive market, the market demand is Qd = 60 - 6P and the market supply is Qs = 4P. The full economic price under a price ceiling of $3 is A. 6.
B. …show more content…
it will rise.
C. it may rise or fall.
D. it will remain the same. 29. If the price of an input rises, producers are willing to produce A. more output at each given price.
B. less output at each given price.
C. the same output at each given price.
D. none of the above. 30. Jane pays the market price of $69 for a new pair of running shoes, even though she would be happy to pay a maximum of $100 for the same pair of shoes. This is an example of the concept of A. producer surplus.
B. price ceilings.
C. full economic prices.
D. consumer surplus. 31. Suppose the demand for good X is given by Qdx = 20 - 4Px + 2Py + M. The price of good X is $5, the price of good Y is $15, and income is $150. Given these prices and income, how much of good X will be purchased?
A)160
B)180
C) 220
D) None of the above.
Answer: B
32. An excise tax of $1.00 per gallon of gasoline placed on the suppliers of gasoline, would shift the supply curve A. down by $1.00.
B. down by more than $1.00.
C. up by $1.00.
D. up by less than $1.00. 33. Assume that the price elasticity of demand is -2 for a certain firm 's product. If the firm raises price, the firm 's managers can expect total revenue to: A.