Cindy's Sweaters' production function is shown in the above table. Cindy rents two knitting ...

Cindy's Sweaters' production function is shown in the above table. Cindy rents two knitting machines for 30 a day each and hires workers at a wage rate of 40 a day. If Cindy produces 18 sweaters per day, what is her average total cost?
 
  A) 6.67
  B) 10.00
  C) 11.00
  D) 13.33

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Ques. 2

In general, a fine on smoking cigarettes shifts the ________ curve of cigarettes ________.
 
  A) supply; rightward
  B) supply; leftward
  C) demand; rightward
  D) demand; leftward

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Ques. 3

If the elasticity of supply of TV sets is equal to 3, then a 10 percent increase in the price of a TV will
 
  A) increase the quantity supplied by 3.33 percent.
  B) increase the quantity supplied by 30.0 percent.
  C) increase the quantity supplied by 0.33 percent.
  D) decrease the quantity supplied by 30.0 percent.

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Ques. 4

Which of the following statements is TRUE about contestable markets?
 
  A) There are significant barriers to entry.
  B) Firms earn large economic profits.
  C) Each firm faces a perfectly elastic demand.
  D) There are few firms in the industry.

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Ques. 5

Marylou, whose utility of wealth curve is shown in the figure above, faces two options. Option A yields her 200 for sure. Option B has a 0.4 probability of yielding 100 and a 0.6 probability of yielding 300. Marylou
 
  A) picks option A.
  B) picks option B.
  C) is indifferent between option A and option B.
  D) needs more information to make a choice.

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Ques. 6

During an above-full-employment equilibrium, actual GDP is greater than potential GDP.
 
  Indicate whether the statement is true or false

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Ques. 7

Utilitarianism is based on the argument that
 
  A) the greater a person's income, the smaller is the marginal benefit of a dollar.
  B) by transferring a dollar from a millionaire to a poor person, more is lost than gained.
  C) taxing people's income from employment makes them work less.
  D) a dollar taken from a rich person does not end up as a dollar in the hands of a poorer person.

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Ques. 8

The above figure shows the Lorenz curve for wealth for the nation of Rusha. The poorest forty percent of the population own what percent of wealth?
 
  A) 0 percent
  B) 10 percent
  C) 20 percent
  D) 40 percent