Fast Copy is a perfectly competitive firm. The figure above shows Fast Copy's cost curves. The current market price is 2 cents per page. With no change in demand and technology, in the long run, the price will
A) remain unchanged.
B) rise to 5 cents per page.
C) rise to 4 cents per page.
D) fall to 1 cent per page.
Ques. 2If voters are rationally ignorant, then the interest of the bureaucracy to maximize its budget will result in an oversupply of a public good.
Indicate whether the statement is true or false
Ques. 3A monopsony pays a wage rate that is
A) greater than value of marginal product.
B) equal to the marginal cost of labor.
C) less than value of marginal product.
D) unacceptable to the workers hired.
Ques. 4Which statement is TRUE about Mr. McConaughey's marginal utility from spending time with family and friends and breaking a sweat?
A) The marginal utility Mr. McConaughey gets from the first hour of spending time with his family is less than the marginal utility from the first hour of breaking a sweat.
B) The marginal utility Mr. McConaughey gets from the third hour of spending time with his family is less than the marginal utility from the fourth hour of breaking a sweat.
C) The marginal utility Mr. McConaughey gets from the fourth hour of spending time with his family is greater than the marginal utility from the fourth hour of breaking a sweat.
D) The marginal utility Mr. McConaughey gets from the second hour of spending time with his family is greater than the marginal utility from the first hour of breaking a sweat.
Ques. 5Average variable cost is at a minimum at the same amount of output at which
A) average product is at a maximum.
B) marginal product is at a maximum.
C) average product is at a minimum.
D) marginal product is at a minimum.
Ques. 6In the economy of Briskland, the commercial banks have deposits of 500 billion. Their reserves are 50 billion, 80 percent of which is in deposits with the Central Bank.
There is 20 billion in Central Bank notes outside the banks, and there are no coins. a) What is the monetary base? b) If all the deposits are money, what is the total quantity of money? c) What is the banks' reserve ratio? d) What is the currency drain as a percentage of the quantity of deposits?
Ques. 7A firm in ________ will engage in ________ to try to earn an economic profit.
A) perfect competition; advertising
B) monopolistic competition; product differentiation
C) perfect competition; price wars
D) monopolistic competition; price wars
Ques. 8If consumers buy only gasoline and food, at their best affordable choice the marginal rate of substitution between food and gasoline ________ the relative price of food and gasoline.
A) must exceed
B) must be less than the
C) must equal
D) might exceed or be less than but not equal to
Ques. 9The above figure shows the supply and demand curves for high-skilled and low-skilled labor. High-skilled workers earn a wage rate of
A) 15 per hour.
B) 12 per hour.
C) 9 per hour.
D) 6 per hour.
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