The ________ is the cost of paid by the producer plus any cost paid by everyone else when another unit of a good or service is produced.
A) marginal external cost.
B) marginal private cost.
C) marginal social cost.
D) None of the above answers is correct.
Ques. 2In June 2008, the dollar bought 1.6 Brazilian reals and in October, the dollar bought 2.4 reals. This resulted in a
A) a movement upward along the supply curve for dollars.
B) a movement downward along the supply curve for dollars.
C) rightward shift in the supply curve for dollars.
D) leftward shift in the supply curve for dollars.
Ques. 3The quantity of money in an economy is 9 million, and the velocity of circulation is 3. Nominal GDP in this economy is ________.
A) 6 million
B) 9 million
C) 3 million
D) 27 million
Ques. 4For Product X, the income elasticity of demand is 1.16. Which of the following is therefore definitely TRUE?
A) Product X is a necessity.
B) Product X is income elastic.
C) Product X is a substitute for some other good.
D) Product X is something that mostly poor people will buy.
Ques. 5The above figure shows the marginal social benefit and marginal social cost curves of doughnuts in the nation of Kaffenia. Which of the following would lead the quantity of doughnuts in Kaffenia to differ from the efficient quantity?
A) The existence of many producers and sellers of doughnuts.
B) The existence of just one producer and seller of doughnuts.
C) Damage to the environment from the disposal of oil used to cook the doughnuts.
D) Both answers B and C are correct.
Ques. 6A firm in a competitive labor market will hire labor until the value of marginal product of labor equals the
A) firm's marginal revenue.
B) firm's marginal cost.
C) firm's average cost.
D) wage rate.
Ques. 7A group of firms that has entered into a collusive agreement to restrict output and increase prices and profits is called
A) a compliance.
B) a cartel.
C) an oligopoly.
D) a duopoly.
Ques. 8Jenny buys sodas and popcorn. Sodas sell for 1 and popcorn sells for 2 a bag. Currently she is in consumer equilibrium, with the marginal utility from her last dollar spent on popcorn equal to 100 units of utility.
The marginal utility from her last dollar spent on sodas is A) 20 units of utility.
B) 30 units of utility.
C) 50 units of utility.
D) 100 units of utility.
Ques. 9An advantage of the corporation over other forms of business organization is that
A) the owners have unlimited liability.
B) a corporation's profits are taxed only once.
C) large-scale, low-cost capital is more readily available.
D) the decision-making structure is simple.
Ques. 10A country possesses a comparative advantage in the production of a good if
A) the opportunity cost in terms of forgone output of alternative goods is lower for this country than it is for its trading partners.
B) it possesses an absolute advantage in the production of this good.
C) it is able to produce more of this good per hour than can any other country.
D) all of the above.
Ques. 11The income elasticity of demand is largest for
A) food.
B) clothing.
C) shelter.
D) luxuries.
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