Ramen noodles were hotter than ever in 2010. Considered a bargain meal for cash-starved college students... in 2010, 4 billion individual packets were devoured in the United States, a 4 percent increase over 2006.
If once college students graduated, they stopped eating ramen, would ramen be considered a normal or inferior good? A) inferior because students only eat ramen when income is low
B) normal because students only eat ramen when income is low
C) inferior because students only eat ramen when income is high
D) normal because students only eat ramen when income is high
Ques. 2For the past 15 years the American public has wanted to buy big trucks. The Big Three automakers delivered, investing billions in plants that build gas guzzlers. Now, when customers walk into showrooms, gas mileage is on their mind.
Retooling the industry will take years, so in the meantime GM, Ford and Chrysler are tweaking their existing models. They're changing tires, adjusting transmissions and exhaust valves in hopes of getting one or maybe two more miles per gallon. Which of the decisions by the Big Three to gain gas mileage is a short run decision? A) adjusting exhaust valves
B) adjusting transmissions
C) changing tires
D) All of these decisions are short run decisions.
Ques. 3Whenever you discount a future sum of money into its present value, you must know I. the interest rate. II. the number of years in the future in which the money will be received.
A) only I
B) only II
C) both I and II
D) neither I nor II
Ques. 4Jimmy grows corn. His total revenue and total cost are in the above table. What quantity of corn maximizes his profit and what is his profit? What is the marginal revenue and marginal cost at this quantity?
What will be an ideal response?
Ques. 5The process of converting a future amount of money into its value today is called
A) trending.
B) depreciation.
C) discounting.
D) compounding.
Ques. 6A natural monopoly that charges the profit-maximizing price will produce ________ amount of output than a ________.
A) a larger; natural monopoly regulated with an average cost pricing rule
B) a more efficient; perfectly competitive industry
C) the same; natural monopoly regulated with a marginal cost pricing rule
D) a smaller; natural monopoly regulated with a marginal cost pricing rule
Ques. 7In the above table, if the market is perfectly competitive and unregulated, the equilibrium price will be
A) 50 per unit.
B) 60 per unit.
C) 70 per unit.
D) 110 per unit.
Quick Reply
