AGEC 105 Final :) Exam Questions and
Answers Graded A+
The following information supposedly collected on a particular country by the
CIA.
Consumption Expenditures$3,600 million
Imports$1,200 million
Depreciation$300 million
Government Expenditures$1,000 million
Gross Private Domestic Investment$1,000 million
Tax Revenues$700 million
Exports$800 million
Implicit GDP Deflator 2.00 (1996 = 1.00)
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,Nominal GDP is equal to:
$4,900 million
$5,200 million
$5,600 million
$6,000 million - Correct answer-$5,200 million
An inflationary gap occurs in the economy when:
aggregate demand is in the Keynesian or depression range of
the aggregate supply curve.
aggregate demand is greater than full employment output.
aggregate demand is perfectly elastic.
none of the above. - Correct answer-aggregate demand is greater than full
employment output
The change in total revenue obtained by selling an additional unit of output is
average revenue
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,business revenue
marginal revenue
overhead revenue
profit margin - Correct answer-marginal revenue
Suppose that a monopoly is earning economic profits in the short run. As a result,
no new firms will enter the industry because of barriers to entry
the monopolist will increase its price and lower its output
the market supply curve will shift to the right
profits will fall as new firms enter the market
the market demand curve will shift to the left - Correct answer-no new firms will
enter the industry because of barriers to entry
Marginal revenue, average revenue, and price are all equal for a monopolist.
True or False - Correct answer-False
A monopolist earns a profit whenever
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, total revenue equals total cost
marginal revenue equals marginal cost
price exceeds average variable cost
marginal revenue is positive
price exceeds average total cost - Correct answer-price exceeds average total cost
In the short run, a monopoly should shut down whenever
marginal revenue exceeds marginal cost
price is less than average total cost
total revenue is less than total cost
price exceeds the ratio of marginal cost to average cost at the optimal output
price is less than average variable cost everywhere - Correct answer-price is less
than average variable cost everywhere
The monopoly that does not practice price discrimination
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Answers Graded A+
The following information supposedly collected on a particular country by the
CIA.
Consumption Expenditures$3,600 million
Imports$1,200 million
Depreciation$300 million
Government Expenditures$1,000 million
Gross Private Domestic Investment$1,000 million
Tax Revenues$700 million
Exports$800 million
Implicit GDP Deflator 2.00 (1996 = 1.00)
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,Nominal GDP is equal to:
$4,900 million
$5,200 million
$5,600 million
$6,000 million - Correct answer-$5,200 million
An inflationary gap occurs in the economy when:
aggregate demand is in the Keynesian or depression range of
the aggregate supply curve.
aggregate demand is greater than full employment output.
aggregate demand is perfectly elastic.
none of the above. - Correct answer-aggregate demand is greater than full
employment output
The change in total revenue obtained by selling an additional unit of output is
average revenue
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,business revenue
marginal revenue
overhead revenue
profit margin - Correct answer-marginal revenue
Suppose that a monopoly is earning economic profits in the short run. As a result,
no new firms will enter the industry because of barriers to entry
the monopolist will increase its price and lower its output
the market supply curve will shift to the right
profits will fall as new firms enter the market
the market demand curve will shift to the left - Correct answer-no new firms will
enter the industry because of barriers to entry
Marginal revenue, average revenue, and price are all equal for a monopolist.
True or False - Correct answer-False
A monopolist earns a profit whenever
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, total revenue equals total cost
marginal revenue equals marginal cost
price exceeds average variable cost
marginal revenue is positive
price exceeds average total cost - Correct answer-price exceeds average total cost
In the short run, a monopoly should shut down whenever
marginal revenue exceeds marginal cost
price is less than average total cost
total revenue is less than total cost
price exceeds the ratio of marginal cost to average cost at the optimal output
price is less than average variable cost everywhere - Correct answer-price is less
than average variable cost everywhere
The monopoly that does not practice price discrimination
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