Principles of Microeconomics Essay

1) If average movie ticket worths rise by about 5 percent and attendance falls by about 2 percent, other things being equal, the elasticity of demand for movie tickets is aboutB. 0.42) A basic divergency between microeconomics and macroeconomics is that microeconomicsC. examines the choices made by individual participants in an economy, man macroeconomics considers the economys overall performance3) An economist who is studying the relationship between the capital supply, interest rates, and the rate of inflation is engaged in B. macroeconomic research4) After several years of slow economic growth, world demand for crude 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 entertain end product among members in its effort to lift fossil oil outlays. What trump out describes these events?C. The rise in demand shifte d the demand for oil to the right. As price rose, the quantity of oil supplied rose.5) Price elasticity of demand is theD. percentage change in quantity demanded of a good divided by the percentage change in the price of that good6) The distinction between supply and the quantity supplied is best made by saying thatB. supply is represented graphically by a pervert and the quantity supplied as a point on that trim down associated with a particular price7) When labor is the variable input, the average product equals theD. quantity of output divided by the number of workers8) The increase in output obtained by hiring an additional worker is known asB. the marginal product9) 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 robotic equipment to develop a more appeal-effective take technique.10) Other things being equal, when average productivity falls,D. average variable comprise must rise11) According to economist Colin Camerer of the California Institute of Technology, many refreshed York jade drivers decide when to finish work by setting an income goal for themselves. If this is true, then on busy days when the effective hourly wage is higher, taxi drivers willB. work fewer hours than they will on slower days12) A trustworthys demand for labor is derived from theD. demand for its output13) Owen runs a delivery business and currently employs three drivers. He owns three vans that employees use to make deliveries, but he is considering hiring a quaternary driver. If he hires a fourth driver, he discount schedule breaks and lunch hours so all three vans be in constant use, allowing him to increase deliveries per day from 60 to 75. This will cost an additional $75 per day to hire the fourth driver. The marginal cost per delivery of increasing output beyond 60 deliveries per dayB. is $514) expect economic profit per unit is equal toC. the diversity between e xpected average price and expected average total cost15) If a firm in a perfectly agonistic market experiences a technological breakthrough,B. other firms would find out about it immediately16) A significant difference between monopoly and perfect competition is thatC. the monopolists demand curve is the industry demand curve, while the competitive firms demand curve is perfectly elastic17) A monopoly firm is different from a competitive firm in thatC. a monopolist can influence market price while a competitive firm cannot18) The difference between a perfectly competitive firm and a monopolistically competitive firm is that a monopolistically competitive firm faces aD. downward-sloping demand curve and price exceeds marginal cost in equilibrium19) As long as marginal cost is below marginal revenue, a perfectly competitive firm shouldA. increase production20) Because a monopolistic competitor has some monopoly condition, advertising to increase that monopoly power makes sense as lo ng as the marginalC. benefit of advertising exceeds the marginal cost of advertising21) In the Flint Hills area of Kansas, proposals to build hustle turbines to generate electricity have pitted environmentalist against environmentalist. Members of the Kansas Sierra Club support the turbines as a way to reduce fossil fuel usage, while local chapters of the Nature Conservancy say they will befoul the landscape. The Sierra Club argues that wind turbinesB. reduce negative externalities elsewhere in the economy22) When negative externalities are present, market failure often occurs becauseA. the marginal external cost resulting from the activity is not reflected in the market price23) A merger between a textile mill and a clothing manufacturing company would be considered aB. vertical merger24) A merger between a baby nutrient company and a life insurance company would be considered aC. conglomerate merger25) The fact that U.S. managers salaries are substantially greater than those of comparable managers in Japan may be related toA. an increase in the demand for CEOs26) Suppose people freely choose to spend 40 percent of their income on health care, but the government decides to tax 40 percent of a persons income to provide the same level of coverage as before. What can be said about deadweight loss in each case?A. Taxing income results in deadweight loss, while purchasing health care on whizs own does not result in deadweight loss.27) The U.S. textile industry is relatively small because the US imports most of its clothing. A clear result of the meaning of clothing isD. the price of clothing is lower than it would be without imports28) Countries can expect to gain from international trade as long as theyB. specialize agree to their comparative advantage29) Which of the following is an example of the law of one price?D. Because their countries have similar institutions, the price paid for a computer in Germany and the get together States are about the same wh en converted into the same currency.30) From the point of view of consumer and producer surplus, what problem may be created when a country subsidizes the cost of muscle to consumers to help alleviate the burden of higher energy costs?C. It encourages the consumption of too much fuel at the expense of othergoods.