Econ 528 Final || WITH A+ GRADED SOLUTIONS!!!
The production possibilities frontier is the
A) maximum output that can be produced at an opportunity cost of zero.
B) minimum output that can be produced when resources are used inefficiently.
C) boundary between the combinations of goods and services that can be produced and the
combinations that cannot be produced, given the available factors of production and the
state of technology.
D) boundary between the combinations of goods and services that can be produced and the
combinations that cannot be produced when technology is changing.
E) maximum opportunity cost combinations of goods and services. correct answers C)
boundary between the combinations of goods and services that can be produced and the
combinations that cannot be produced, given the available factors of production and the
Assume that an association of young workers has lobbied Congress to require that all workers
retire once they reach the age of fifty. What impact would this law have on the nation's
production possibilities frontier?
A) no impact at all
B) The nation would move to a new position on its production possibilities frontier but the
frontier itself would not shift.
C) The level of unemployment would decrease so the production possibilities frontier would
shift outward.
D) The number of young workers would increase so the production possibilities frontier
would shift outward.
E) The production possibilities frontier would shift inward. correct answers E) The
production possibilities frontier would shift inward.
An increase in the quantity demanded is shown as a
A) movement toward the demand curve.
B) leftward shift of the demand curve.
C) movement along the demand curve.
D) rightward shift of the demand curve.
E) both a movement along the demand curve and a shift of the demand curve. correct answers
C) movement along the demand curve.
The primary goal of a business firm is to
A) maximize profit.
B) increase its production.
C) promote fairness.
D) make a quality product.
E) promote workforce job satisfaction. correct answers A) maximize profit.
An increase in the price of labor (a variable resource) shifts
A) the variable cost curves upward but leaves the fixed cost curves unchanged.
B) the marginal cost curve rightward.
, C) all cost curves upward.
D) the fixed cost curves upward but leaves the variable cost curves unchanged.
E) none of the cost curves. correct answers A) the variable cost curves upward but leaves the
fixed cost curves unchanged.
Average product is equal to
A) total product ÷ quantity of labor.
B) marginal product × quantity of labor.
C) marginal product + total product.
D) total product × quantity of labor.
E) total product ÷ marginal product. correct answers A) total product ÷ quantity of labor.
In which market structure do firms exist in very large numbers, each firm produces an
identical, product, and there is freedom of entry and exit?
A) only perfect competition
B) oligopoly
C) monopoly
D) only monopolistic competition
E) both perfect competition and monopolistic competition correct answers A) only perfect
competition
The total variable cost curve ________ because ________ as output increases.
A) slopes downward; marginal cost increases
B) is horizontal; fixed cost does not change
C) slopes upward; marginal cost increases
D) slopes upward; variable cost increases
E) slopes downward; variable cost increases correct answers D) slopes upward; variable cost
increases
The price charged by a perfectly competitive firm is
A) higher the more the firm produces.
B) indeterminate.
C) the same as the market price.
D) lower the more the firm produces.
E) different than the price charged by competing firms. correct answers C) the same as the
market price.
If the market price is $50 for a unit of a good produced in a perfectly competitive market and
the firm's minimum average variable cost is $52, then to maximize its profit (or minimize its
loss)
the firm should
A) definitely produce the unit.
B) shut down.
C) not produce the unit. Whether the firm should shut down or remain open cannot be
determined without more information.
The production possibilities frontier is the
A) maximum output that can be produced at an opportunity cost of zero.
B) minimum output that can be produced when resources are used inefficiently.
C) boundary between the combinations of goods and services that can be produced and the
combinations that cannot be produced, given the available factors of production and the
state of technology.
D) boundary between the combinations of goods and services that can be produced and the
combinations that cannot be produced when technology is changing.
E) maximum opportunity cost combinations of goods and services. correct answers C)
boundary between the combinations of goods and services that can be produced and the
combinations that cannot be produced, given the available factors of production and the
Assume that an association of young workers has lobbied Congress to require that all workers
retire once they reach the age of fifty. What impact would this law have on the nation's
production possibilities frontier?
A) no impact at all
B) The nation would move to a new position on its production possibilities frontier but the
frontier itself would not shift.
C) The level of unemployment would decrease so the production possibilities frontier would
shift outward.
D) The number of young workers would increase so the production possibilities frontier
would shift outward.
E) The production possibilities frontier would shift inward. correct answers E) The
production possibilities frontier would shift inward.
An increase in the quantity demanded is shown as a
A) movement toward the demand curve.
B) leftward shift of the demand curve.
C) movement along the demand curve.
D) rightward shift of the demand curve.
E) both a movement along the demand curve and a shift of the demand curve. correct answers
C) movement along the demand curve.
The primary goal of a business firm is to
A) maximize profit.
B) increase its production.
C) promote fairness.
D) make a quality product.
E) promote workforce job satisfaction. correct answers A) maximize profit.
An increase in the price of labor (a variable resource) shifts
A) the variable cost curves upward but leaves the fixed cost curves unchanged.
B) the marginal cost curve rightward.
, C) all cost curves upward.
D) the fixed cost curves upward but leaves the variable cost curves unchanged.
E) none of the cost curves. correct answers A) the variable cost curves upward but leaves the
fixed cost curves unchanged.
Average product is equal to
A) total product ÷ quantity of labor.
B) marginal product × quantity of labor.
C) marginal product + total product.
D) total product × quantity of labor.
E) total product ÷ marginal product. correct answers A) total product ÷ quantity of labor.
In which market structure do firms exist in very large numbers, each firm produces an
identical, product, and there is freedom of entry and exit?
A) only perfect competition
B) oligopoly
C) monopoly
D) only monopolistic competition
E) both perfect competition and monopolistic competition correct answers A) only perfect
competition
The total variable cost curve ________ because ________ as output increases.
A) slopes downward; marginal cost increases
B) is horizontal; fixed cost does not change
C) slopes upward; marginal cost increases
D) slopes upward; variable cost increases
E) slopes downward; variable cost increases correct answers D) slopes upward; variable cost
increases
The price charged by a perfectly competitive firm is
A) higher the more the firm produces.
B) indeterminate.
C) the same as the market price.
D) lower the more the firm produces.
E) different than the price charged by competing firms. correct answers C) the same as the
market price.
If the market price is $50 for a unit of a good produced in a perfectly competitive market and
the firm's minimum average variable cost is $52, then to maximize its profit (or minimize its
loss)
the firm should
A) definitely produce the unit.
B) shut down.
C) not produce the unit. Whether the firm should shut down or remain open cannot be
determined without more information.
