Econ 528 Midterm Test 2020 – Grade A | Econ 528 Midterm Test 2020

Econ 528 Midterm Test 2020 – Grade Midterm 1.) A good that is similar to another, and can be consumed in place of it, is called: A.) A complementary good B.) A substitute good C.) An inferior good D.) A normal good 2.) Unlike an accountant, an economist measures costs on a(n) basis. A.) Historical B.) Conservative C.) Explicit D.) Replacement 3.) Scarcity A.) Applies only to people living in poverty B.) Leads to higher prices C.) Used to exist everywhere but has been eliminated in advanced economies D.) Is not something that affects very rich people E.) Is the inability to satisfy all our wants 4.) A firm earns a normal profit when its total revenues just offset bother the cost and the cost. A.) Historical; replacement B.) Accounting; replacement C.) Explicit; accounting D.) Accounting; opportunity 5.) Which of the following will cause a decrease in market equilibrium price and an increase in equilibrium quantity? A.) An increase in demand B.) A decrease in demand C.) An increase in supply D.) A decrease in supply 6.) A horizontal demand curve for a firm implies that A.) The products of that firm are very different from other firms’ products B.) The firm is selling in a competitive market C.) The market the firm is operating in is not competitive D.) The firm is a monopoly 7.) A factor of production that can be easily changed in the relevant time period is called a: A.) Fixed input B.) Temporary input C.) Variable input D.) Substation input 8.) Adrian’s total utilities of two consumption bundles are 50 and 100. This implies that A.) Adrian likes the first bundle twice as much B.) Adrian likes the second bundle twice as much C.) Adrian prefers the second bundle D.) Adrian prefers the first bundle 9.) When an economist uses the term “cost” referring to a firm, the economist refers to the A.) Implicit cost of producing a good or service but not the explicit cost of producing a good or service B.) Explicit cost of producing a good or service but not the implicit cost of producing a good or service C.) Cost that can be actually verified and measured D.) Price of the good to the consumer E.) Opportunity cost of producing a good or service, which includes bother implicit and explicit cost 10.) Coke and Pepsi are substitutes is: - - - -- Continued