Which of the following ideas describes the concept of utilitarianism? I. Utilitarianism gained popularity in the 1930s. II. Utilitarians believed that a society should use only competitive markets to allocate resources. III.
Utilitarians claimed that taking money from rich people and giving it to poorer people would make the economy more fair. A) III only
B) II only
C) I and II
D) I, II and III
Ques. 2The preceding table gives monthly production information for Peter's Peanuts, a firm in a perfectly competitive industry. The market price of peanuts is 2.00 per pound. A worker costs 1,200 per month.
How many workers does Peter hire to maximize his profit? A) zero
B) one
C) three
D) four
Ques. 3A rise in the exchange rate leads to a decrease in the quantity of dollars demanded.
Indicate whether the statement is true or false
Ques. 4Cindy'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 total cost?
A) 120
B) 140
C) 180
D) 60
Ques. 5Which of the following indicates a high degree of competition?
A) A HHI that is between 1,800 and 2,800.
B) A HHI that exceeds 2,800.
C) A concentration ratio that is less than 40 percent.
D) A concentration ratio that is greater than 60 percent.
Ques. 6In the short run, a perfectly competitive firm's economic profits
A) must equal zero, that is, the firm earns a normal profit.
B) must be positive.
C) might be positive, negative (an economic loss), or zero (a normal profit).
D) must be negative, that is the firm must incur an economic loss.
Ques. 7The above figure shows the Lorenz curve for wealth for the nation of Rusha. What percent of wealth is owned by the poorest quintile?
A) 0 percent
B) 5 percent
C) 20 percent
D) 35 percent
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