Sue's Surfboards is the sole renter of surfboards on Big Wave Island. If marginal revenue is positive at the number of surfboard rentals made each hour, then Sue's Surfboards
A) must face an elastic demand for surfboard rentals.
B) must face an inelastic demand for surfboard rentals.
C) can increase its total revenue by increasing the price of rentals.
D) must face a unit elastic demand for surfboard rentals.
Ques. 2In the above table, the marginal product of the 7th worker is 6. What is the total product when 7 workers are employed?
A) 68
B) 70
C) 72
D) 76
Ques. 3Which of the following are characteristics of a proprietorship? I. Single owner II. Limited liability
A) I only
B) II only
C) both I and II
D) neither I nor II
Ques. 4Ron spends 150 on movie tickets and pizza. The price of a pizza is 10 and a movie ticket is 7.50.
With the quantity of movies measured along the vertical axis, the slope of Ron's budget line (with movies on the vertical axis) is ________ per pizza A) 1.33 movies
B) -1.33 movies
C) 0.75 of a movie
D) -0.75 of a movie
Ques. 5In the above figure, suppose that the government sets a limit to production at 10 units of output and the price rises to 4. In comparison to a competitive market the consumer surplus would fall by
A) 0.
B) 10.
C) 15.
D) 20.
Ques. 6In the prisoners' dilemma game, each player
A) has only one possible strategy.
B) can choose from two strategies.
C) can choose from three strategies.
D) can choose from four strategies.
Ques. 7When a tax is imposed on the suppliers of a good or service, then
A) in general, the producers pay all the tax.
B) in general, the consumers pay all the tax.
C) the consumers pay a larger part of the tax as the elasticity of demand for the product becomes smaller.
D) the consumers pay a larger part of the tax as the elasticity of demand for the product becomes larger.
Ques. 8In the figure above, the opportunity cost of moving from point C to point D is
A) the loss in production in the health care sector.
B) the increase in production in the education sector.
C) zero.
D) the loss in production in the education sector.
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