The above figure shows the competitive market for turkey. The consumer surplus for the 300 millionth pound of turkey is
A) 2.00 per pound.
B) 225 million.
C) 0.80 per pound.
D) 0.50 per pound.
Ques. 2When the price of milk rose 50 percent, the quantity of milk sold fell 25 percent and the sale of breakfast cereals also fell 25 percent. This set of facts indicates that the
A) demand for milk is price elastic.
B) demand for breakfast cereals is price elastic.
C) cross elasticity between milk and cereal is negative so the two are complements.
D) cross elasticity between milk and cereal is positive so the two are complements.
Ques. 3The magnitude of the slope of the budget line is determined by
A) the marginal rate of substitution.
B) the level of income.
C) the consumer's preferences for the goods.
D) relative prices.
Ques. 4Which of the following statements is FALSE concerning monopolistic competition?
A) There are many firms.
B) Firms sell a differentiated product.
C) Each firm's actions influence rival firms.
D) Firms are free to enter and exit.
Ques. 5Water from the Mississippi river is an example of
A) a nonrenewable natural resource.
B) a renewable natural resource.
C) capital.
D) a static resource.
Ques. 6Based on the data in the above table, at what level of output does the marginal cost start to rise at Jefferson's Cleaners?
A) 45 suits per day
B) 47 suits per day
C) 74 suits per day
D) 85 suits per day
Ques. 7Good A has a perfectly inelastic demand and an upward-sloping supply curve. Good B has a perfectly inelastic supply and a downward-sloping demand curve. If the same sales tax is imposed on the sellers of both good A and good B, the price paid by
A) buyers of good A rises by more than the price paid by buyers of good B.
B) buyers of good B rises by more than the price paid by buyers of good A.
C) buyers of good A rises by the same amount as the price paid by buyers of good B.
D) More information is needed to determine whether the price paid by buyers of good A rises by more than, less than, or the same amount as the price paid by buyers of good B.
Ques. 8Game theory is most useful for determining the outcome when ________.
A) the market structure is oligopoly
B) monopolistic competition exists
C) prison terms are involved
D) the market is dominated by a monopoly
Ques. 9In the political marketplace, voters do all of the following EXCEPT
A) benefit from public goods and services.
B) pay some taxes.
C) vote.
D) evaluate policy proposals of bureaucrats.
Ques. 10A country has a government sector deficit and a private sector surplus. If the government sector deficit increases, and the private sector surplus decreases, then ________.
A) net exports decrease or remain constant
B) net exports increase
C) net exports increase, decrease, or remain constant
D) net exports decrease
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