Teddy buys only chocolate chip cookies and hot chocolate and spends all of his income on the two ...

Teddy buys only chocolate chip cookies and hot chocolate and spends all of his income on the two items. Suppose the price of a cookie rises. According to marginal utility theory, Teddy will buy
 
  A) more cookies and less hot chocolate, which decreases his marginal utility from cookies and increases his marginal utility from hot chocolate.
  B) more cookies and less hot chocolate, which increases his marginal utility from cookies and decrease his marginal utility from hot chocolate.
  C) fewer cookies and more hot chocolate, which decreases his marginal utility from cookies and increases his marginal utility from hot chocolate.
  D) fewer cookies and more hot chocolate, which increases his marginal utility from cookies and decreases his marginal utility from hot chocolate.

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Ques. 2

Based on the above table, which shows the firms and sales in an industry, what is the approximate value of the Herfindahl-Hirschman Index?
 
  A) 1,660
  B) 2,300
  C) 4,800
  D) 10,000

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Ques. 3

Based on the above table, which shows the firms and sales in an industry, what is the four-firm concentration ratio?
 
  A) 55
  B) 74
  C) 100
  D) 740 million

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Ques. 4

The figure above shows the costs for a grower in the perfectly competitive turnip market. If the price is 1,200 for a ton of turnips, the firm is
 
  A) making an economic profit.
  B) making zero economic profit.
  C) incurring an economic loss.
  D) More information is needed to determine if the firm is making a positive economic profit, zero economic profit, or incurring an economic loss.

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Ques. 5

The figure above shows the costs for a grower in the perfectly competitive turnip market. If the price is 1,000 for a ton of turnips, the firm is
 
  A) making an economic profit.
  B) making zero economic profit.
  C) incurring an economic loss.
  D) More information is needed to determine if the firm is making a positive economic profit, zero economic profit, or incurring an economic loss.

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Ques. 6

For the United States, Lorenz curves show that
 
  A) income is more equally distributed than wealth.
  B) income is less equally distributed than wealth.
  C) incomes have increased over time.
  D) blacks and Hispanics became better off in the 1990s.