Suppose that an industry consists of 10 firms, and the top 4 firms have annual sales of 2.5 million, ...

Suppose that an industry consists of 10 firms, and the top 4 firms have annual sales of 2.5 million, 2 million, 1.5 million, and 1 million, respectively.
 
  If the entire industry has annual sales of 10 million, the four-firm concentration ratio is A) 85 percent.
  B) 50 percent.
  C) 10 percent.
  D) 70 percent.

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Ques. 2

All of the following cause a shift in the demand curve EXCEPT a change in the
 
  A) price of related goods.
  B) price of the good or service.
  C) consumer income.
  D) number of consumers.

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Ques. 3

Refer to the above figure. We are currently producing at point c. Which of the following statements is TRUE?
 
  A) Resources are not being efficiently utilized.
  B) Resources are being efficiently utilized.
  C) The only way to produce more of Goods X or Y is to have an increase in the amount of resources.
  D) The Law of Increasing Additional Cost does not hold.

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Ques. 4

Behavioral economics deals with
 
  A) the assumption that people are always selfish.
  B) bounded rationality.
  C) unbounded willpower.
  D) only theories without justification from empirical evidence.

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Ques. 5

If we wanted to analyze the effects of a 2 unit tax graphically, we would shift the
 
  A) supply curve upward by 2.
  B) supply curve downward by 2.
  C) demand curve upward by 2.
  D) demand curve downward by 2.

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Ques. 6

The principal feature of private goods is that
 
  A) they cannot be rented or purchased.
  B) consumption by one person reduces the quantity available to others.
  C) no one can be excluded from consumption of the product.
  D) externality problems associated with their production are always negative.

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Ques. 7

Refer to the above figure. Given our current level of technology and resources, the unobtainable point(s) of production would be
 
  A) points a and c.
  B) point a.
  C) point b.
  D) point c.

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Ques. 8

Classical economists suggest that unemployment is a short-lived phenomenon because
 
  A) wages adjust quickly to equilibrate quantity of labor demanded with quantity of labor supplied.
  B) wages remain unchanged when the quantity of labor demanded exceeds the quantity of labor supplied.
  C) wages remain unchanged when the quantity of labor supplied exceeds the quantity of labor demanded.
  D) wages tend to rise slowly when the quantity of labor demanded equals the quantity of labor supplied.

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Ques. 9

Which of the following is most likely to generate a surplus?
 
  A) a price floor
  B) a price ceiling
  C) an illegal market
  D) all of these