Specializing in production of a good or service in which one has a comparative advatange leads to?

[Kiley]

a.a consumption possibilities frontier that is identical to the production possibilities frontier.
b. a consumption possibilities frontier that is decreased to below its production possibilities frontier.
c. a consumption possibilities frontier for the producing unit that is increased beyond its production poss
d.none of the above
If the dmeand for good X increases, when the price of good Y decreases, then:
a.good x and y are inferior goods
b.goods x and y are complement
c. goods x and y are substitutes
d.goods x and y are normal goods
A price floor invariably creates a surplus of the commodity affected which means:
a.the commodity is no longer scarce
b.at the price floor quantity demanded is greater than quantity supplied
c.at the price floor quantity supplied is greater than quantity demand
d.the good under the price floor has become more plentiful. e.none of the above
If gov't decides to control pollution by placing a tax on the product that is assoc. with pollution the size of the tax should be:
a. that will force the market price so high that no buyer can afford the product
b.equal to the social cost of the product
c.equal to the private cost of the product
d.equal to the external cost of the product
e none of the above
If someone enjoys the benefits from national defense but never pays any taxes to support it that person is known in economics as a
a.tax cheater
b.free loader
c.homeless person
d.free rider
e none of the above
If a nation has a comparative advantage in producing a good or service this means that?
a.using the same amount of resources this nation can produce more of the good than any other
b.using the same amount of resources this nation can produce the good at a lower oppurt. cost
c.the nation is the only possible producer of the good in the world
d.the nation has a monopoly in the production of the good
e. none of the above
Among the characteristics of a monopoly market structure is:
a.there is only one seller in the market
b.entry of new sellers is completely blocked
c.the product is unique
d.all of the above. e.none of the above
Oligopoly markets and presidential politics both
a.have competition in product style
b.have many competitors
c.can be analyzed using game theory
d.can be analyzed using competitive models e.none of the above
Demand in factor markets is unique because:
a.demand for a factor of production is so diffcult to determine
b.demand comes from worker productivity and the revenue situation of the firm not tastes and preferences of consumers
c.demand is based on the tastes and preferences of firms
d.demand is based on the tastes and preferences of resource owners e.none of the above
Wages determined in a market economoy are determined by
a.employers deciding how much they can afford to pay
b.the gov't comparing the value of various jobs
c.the interactio between the demand for labor and the supply of labor
d.the court system deciding what are fair wages e.none of the above
Economic Rent is
a.what you pay to rent your apartment or house
b.the price received by a factor of production with an up sloping supply curve
c.the price received by a factor of production with a perfectly inelastic supply curve
d.the price received by a factor of production with a down sloping supply curve e.none of the above
55 The total revenue curve with output on the horizontal axis for a perfectly competitive seller is:
a.u-shaped
b.inverted u-shaped
c.a horizontal line
d. an up sloping line e.none of the above
56 For a perfectly competitive firm at profit maximization
a.market price equals marginal cost
b.total revenue minus total cost is maximized
c.marginal revenue equals marginal cost
d all of the above e none of the above
60 An individual seller in perfect competition will not sell at a price higher than the market price because
a.the seller would not be able to sell anything
b.quantity demanded would be zero
c.buyers would buy from other sellers
d.all of these reasons
e.none of the above
62 The total profit of a perfectly competitive firm can be calculated as
a.total revenue minus total cost
b.average profit per unit times quantity sold
c.price minus average total cost times quantity sold
d all of the above
e none of the above
67 When a monopolistically competitive firm cuts its price, what it gains is due to the
a.substitution effect
b.income effect
c.price effect
d.output effect
e.none of the above
70 If a monopolistically competitive firm is producing at an output where marginal revenue is 23 and marginal cost is 19 then to maximize profits the firm will
a.continue to produce the same qty
b.increase output
c.decrease output
d shutdown

[alexander w]

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