C211 Global Economics OA 2024 Latest Update
Suppose that the United States imposes a
tariff on avocados imported from Mexico.
What impact will this have on the price paid
for avocados by United States citizens? - ANSWER: The price will increase.
Which of the following is a consequence of a
country imposing a tariff on imported goods? - ANSWER: The demand for foreign
produced goods
decreases.
Suppose that the United States imposes a
tariff on salt. What impact might this tariff
have on the price for domestic consumers? - ANSWER: Consumers will pay a higher
price.
Applying a tariff to coconuts will have the
following effect: - ANSWER: Increase the domestic price of
coconuts.
Which of the following is NOT a restriction to
trade? - ANSWER: Free trade areas.
What is the significant difference between an
import quota and a tariff? - ANSWER: A tariff raises revenue for the
government and an import quota creates surplus for
those who obtain licenses to import.
Suppose that the price of a good increases (all
else held constant). Which of the following
would happen along with the change in price? - ANSWER: Consumer surplus would
decrease.
Suppose that Bob goes to the market and is
willing to pay $500 for a new chainsaw. Bob is
able to find the chainsaw for only $400. Which
of the following follows from Bob's
circumstance? - ANSWER: His consumer surplus is $100.
Which statement is true of consumer surplus? - ANSWER: Consumer surplus
represents value to
buyers in excess of the price paid for the product.
Which statement is true? - ANSWER: Total surplus is the sum of consumer and
producer surplus and is graphically represented as the
area between the supply and demand curves up to the
,equilibrium quantity.
Suppose that Bob lives in the United States,
but has been working in Mexico for the last 5 years. Where is the value of Bob's
production
counted during the last 5 years? - ANSWER: U.S. GNP and Mexico's GDP.
Which of the following statements describes
gross domestic product (GDP)? - ANSWER: GDP is the most used measure of a
country's economic wellbeing.
Which of the following is an investment
included in the gross domestic product (GDP)
measure? - ANSWER: Spending on new residential
construction.
Gross Domestic Product (GDP) measures
which of the following? - ANSWER: Market value of final goods and services
produced within a country in a given period of time.
Which item is NOT part of GDP? - ANSWER: Purchasing a used hairdryer.
What is the key distinction between real and
nominal GDP? - ANSWER: Real GDP measures production not
affected by changes in prices while nominal GDP
measures production measured at current prices.
What is the change in total cost equal to in the
marginal cost equation? - ANSWER: Marginal cost multiplied by change in
quantity.
Fixed costs equal: - ANSWER: Total costs minus variable costs
Economic profit is distinct from accounting
profit because: - ANSWER: Economic profit incorporates both explicit
and implicit costs.
Total costs include: - ANSWER: Variable costs plus fixed costs.
Marginal costs consider: - ANSWER: The increase in total cost arising from an
extra unit of production.
What response best describes the relationship
between marginal costs and total costs? - ANSWER: Whenever marginal cost is less
than
average total cost, average total cost is falling.
, Which statement is true about productivity? - ANSWER: The value of marginal
product of labor
equals wage in a competitive firm.
A production function expresses the
relationship between: - ANSWER: Quantity of resource inputs and
product/service outputs.
Opportunity costs include: - ANSWER: The income the entrepreneur could have
earned working for an employer.
Economists and decision makers study and
then make decisions or judgments based on
(select best answer): - ANSWER: Marginal analysis.
The primary reason that the marginal cost
curve declines and then increases is: - ANSWER: Firms experience increasing
marginal
product, then diminishing marginal product.
Which of the following statements is
accurate? - ANSWER: Marginal costs eventually rise with the
quantity of output.
Consider the following example: A perfectly
competitive firm finds that at current
production levels marginal cost is greater
than marginal revenue. What action should
this firm take in order to pursue the
maximization of profit? - ANSWER: Decrease the target output.
A competitive firm is characterized by: - ANSWER: Trading of identical products.
Competitive firms experience marginal
revenue that is: - ANSWER: Equal to price.
In the short-run, a competitive firm would
continue to produce under the following
circumstance: - ANSWER: Total revenue exceeds total variable
costs.
What fundamental shape does a demand
curve take in a competitive market? - ANSWER: Horizontal.
For a perfectly competitive firm which
condition is true? - ANSWER: The demand curve is the same as the
marginal revenue curve.
Suppose that the United States imposes a
tariff on avocados imported from Mexico.
What impact will this have on the price paid
for avocados by United States citizens? - ANSWER: The price will increase.
Which of the following is a consequence of a
country imposing a tariff on imported goods? - ANSWER: The demand for foreign
produced goods
decreases.
Suppose that the United States imposes a
tariff on salt. What impact might this tariff
have on the price for domestic consumers? - ANSWER: Consumers will pay a higher
price.
Applying a tariff to coconuts will have the
following effect: - ANSWER: Increase the domestic price of
coconuts.
Which of the following is NOT a restriction to
trade? - ANSWER: Free trade areas.
What is the significant difference between an
import quota and a tariff? - ANSWER: A tariff raises revenue for the
government and an import quota creates surplus for
those who obtain licenses to import.
Suppose that the price of a good increases (all
else held constant). Which of the following
would happen along with the change in price? - ANSWER: Consumer surplus would
decrease.
Suppose that Bob goes to the market and is
willing to pay $500 for a new chainsaw. Bob is
able to find the chainsaw for only $400. Which
of the following follows from Bob's
circumstance? - ANSWER: His consumer surplus is $100.
Which statement is true of consumer surplus? - ANSWER: Consumer surplus
represents value to
buyers in excess of the price paid for the product.
Which statement is true? - ANSWER: Total surplus is the sum of consumer and
producer surplus and is graphically represented as the
area between the supply and demand curves up to the
,equilibrium quantity.
Suppose that Bob lives in the United States,
but has been working in Mexico for the last 5 years. Where is the value of Bob's
production
counted during the last 5 years? - ANSWER: U.S. GNP and Mexico's GDP.
Which of the following statements describes
gross domestic product (GDP)? - ANSWER: GDP is the most used measure of a
country's economic wellbeing.
Which of the following is an investment
included in the gross domestic product (GDP)
measure? - ANSWER: Spending on new residential
construction.
Gross Domestic Product (GDP) measures
which of the following? - ANSWER: Market value of final goods and services
produced within a country in a given period of time.
Which item is NOT part of GDP? - ANSWER: Purchasing a used hairdryer.
What is the key distinction between real and
nominal GDP? - ANSWER: Real GDP measures production not
affected by changes in prices while nominal GDP
measures production measured at current prices.
What is the change in total cost equal to in the
marginal cost equation? - ANSWER: Marginal cost multiplied by change in
quantity.
Fixed costs equal: - ANSWER: Total costs minus variable costs
Economic profit is distinct from accounting
profit because: - ANSWER: Economic profit incorporates both explicit
and implicit costs.
Total costs include: - ANSWER: Variable costs plus fixed costs.
Marginal costs consider: - ANSWER: The increase in total cost arising from an
extra unit of production.
What response best describes the relationship
between marginal costs and total costs? - ANSWER: Whenever marginal cost is less
than
average total cost, average total cost is falling.
, Which statement is true about productivity? - ANSWER: The value of marginal
product of labor
equals wage in a competitive firm.
A production function expresses the
relationship between: - ANSWER: Quantity of resource inputs and
product/service outputs.
Opportunity costs include: - ANSWER: The income the entrepreneur could have
earned working for an employer.
Economists and decision makers study and
then make decisions or judgments based on
(select best answer): - ANSWER: Marginal analysis.
The primary reason that the marginal cost
curve declines and then increases is: - ANSWER: Firms experience increasing
marginal
product, then diminishing marginal product.
Which of the following statements is
accurate? - ANSWER: Marginal costs eventually rise with the
quantity of output.
Consider the following example: A perfectly
competitive firm finds that at current
production levels marginal cost is greater
than marginal revenue. What action should
this firm take in order to pursue the
maximization of profit? - ANSWER: Decrease the target output.
A competitive firm is characterized by: - ANSWER: Trading of identical products.
Competitive firms experience marginal
revenue that is: - ANSWER: Equal to price.
In the short-run, a competitive firm would
continue to produce under the following
circumstance: - ANSWER: Total revenue exceeds total variable
costs.
What fundamental shape does a demand
curve take in a competitive market? - ANSWER: Horizontal.
For a perfectly competitive firm which
condition is true? - ANSWER: The demand curve is the same as the
marginal revenue curve.
