ECON 1002 Microeconomics Final Exam Click below link for Answers https://www.sobtell.com/q/tutorial/default/206921-econ-1002-microeconomics-final-exam https://www.sobtell.com/q/tutorial/default/206921-econ-1002-microeconomics-final-exam
1 Which example below represents a fixed input? Utility bills Raw materials for construction Office space being rented Hourly employees
Production Function and Constraints 2 This graph below shows three indifference curves for blankets and pillow cases.
Consider choice A and determine why this would NOT be the optimal choice. The consumer cannot afford this choice. It does not provide the consumer with the highest level of utility possible.
Additional income would be left over with this choice. These indifference curves violate the conditions of consumer theory.
Optimal Choice 3 The additional income a company generates from selling one more unit due to this is called which of the following? Output effect Break even point Diseconomies of scale Price effect
Revenue: Total, Marginal and Average 4 Which one of the following is NOT an example of a practice that contributes to anthropomorphic climate change? Emissions of greenhouse gases Deforestation and use of pesticides
Overuse and grazing of lands Change in migration patterns
Assessing Costs of Anthropomorphic Climate Change--Regulatory Intervention 5 Which of the following is a characteristic of monopolistic competition? Cooperation between firms is sometimes used to maintain prices. Firms sell homogenous products.
Advertising increases the cost of production. Predatory price cutting occurs.
Monopolistic Competition 6 Which of the following is not considered a factor of production? The property that a factory is built on Interest earned on an investment
The employees for a gas station A printer to make copies for a company
Resource Allocation for Firms 7 Movement along the supply curve is most likely caused by which of the following? Changes in input prices Changes in market price Technological changes Government taxes or subsidies
Changes in Supply and Movements along Supply Curve 8 In anticipation of the college's athletic banquet, Lauren considered purchasing gifts for several members of the athletics club who had put a lot of time and effort into making it such a successful program. Lauren decided to buy roses for the women and a leather-bound portfolio and resume paper combination for the men. Which of the following scenarios corresponds to cross-price elasticity? Lauren cannot decide which color of roses to buy because they are all priced the same.
A local high school’s prom is also the same weekend as the ceremony, so the price of roses has increased. Lauren worked overtime last week and made more money. As a result, she decided to purchase the more expensive portfolios that have the university logo on the front, and she decided to buy one more than she had originally planned. The price of resume paper has decreased. Because of this, Lauren can now afford to purchase more paper and an additional portfolio and still be within her budget for gifts.
Cross-Price Elasticity 9 If Bundle of Goods A contains two pizzas and three sodas, and Bundle B contains three pizzas and three sodas, then Patrick will select Bundle B based on the principle of __________. non-satiation transitivity utility theory completeness
Consumer Choice Theory 10
Given the information on this graph, this firm needs to produce which of the following number of units to start making a profit? 10 11 12 14
Breakeven Point 11 Number of Employees Revenue Product 0
0
0
1
9
9
2
24
15
3
36
12
4
43
7
Total Production
Marginal Product of Labor
Marginal
If the price of the item is $15.00 per unit and the employees cost $125 each, how many employees should the firm hire to maximize their profit? One employees Two employees
Four employees Three employees
Output Optimization: Marginal Revenue Product 12 Brent decides to purchase ground beef to make tacos rather than pricier steak because his weekly budget restricts his expenditure on food. Brent is acting as a rational consumer in that he is recognizing that __________. he needs to stay within his budget constraint he is spending beyond his budget to feed his family he is purchasing where his marginal cost is greater than his marginal benefit he is keeping his total costs below his variable costs
Cost and Benefit Optimization for Consumers 13
If the goal is to maximize profit, at which point on the graph would a firm’s output be optimized? Point 2
Point 4 Point 1 Point 3
Output Optimization: Marginal Revenue / Marginal Cost 14 When a firm uses five machines, it can produce 600 units daily. A sixth machine allows the firm to product 880 units.
Which of the following is true regarding production? The marginal product for the fifth machine is 600 and the average product is 120 units. The marginal product for the sixth machine is 280 units and the average product is 147 units. The marginal production for the sixth machine is 880 units and total production would be 1,480 units. The total production for 11 machines would be 1,480 units with an average production of 164 units.
Product: Total, Marginal, Average, and (Marginal) Revenue 15
Which indicators show change at the same time as the economy and thus give a sense of where the economy is in relation to the business cycle? Leading indicators Lagging indicators Coincident indicators All of the given answer choices are correct
Coincident Indicators 16 Which statement below is NOT true regarding process mapping? Almost all business practices and decisions have been documented in some way or another. Process mapping is used for evaluating sustainable business solutions. A process map is a visual representation of the stages in a process. Process mapping forms a foundation for efficiency evaluation.
Process Mapping--Efficiency 17 Which scenario below is an example of consumer surplus?
A car dealership sells exactly as many cars as it has in stock. George is willing to pay up to $20,000 for a car, but he finds one he likes for $15,000. Tom usually charges $75/hour but in certain cases is willing to go as low as $65/hour. A grocery store that usually charges $7/pound for beef is willing to lower the price to $5/pound when a huge shipment comes in.
Market Equilibrium 18 Which of the following is NOT an obstacle to the implementation of environmentally sustainable business practices? Investor awareness of climate change as a risk has increased enough to be addressed by the SEC. CEOs have a fiduciary responsibility to guarantee returns on investments. Environmental impact is not an issue for most investors when assessing the value of an investment. Environmentally sustainable business practices might not be profitable in the short term.
Sustainable Returns--Investor Impact 19
Ben's Bagels charges $10 per dozen bagels and he sells 30 dozen bagels each day. Ben's costs of production total $150 each day. Ben recently quit his job where he earns $100 per day in order to open his bagel store. Ben's accounting profit per day would be __________. $150 $450 $50 $300
Accounting Profit 20 In which type of market structure might we see firms attempting to collude with one another to set prices? Monopoly Perfect competition Monopolistic competition Oligopoly
Oligopoly
21 Which definition below defines perfectly elastic demand? Any change in price always results in a very significant change in demand. A change in price of one good affects a consumer’s decision to purchase a different good. This is the degree to which demand changes in response to a change of price. This is a situation in which a change in price will never change a consumer’s decision to buy a certain good.
Defining Elasticity 22 Which of the following statements best describes the minimum wage? It is a price floor that decreases producer surplus as compared to the free market equilibrium price and output. It is a price floor that decreases consumer surplus as compared to the free market equilibrium price and output. It is a price ceiling that decreases consumer surplus as compared to the free market equilibrium price and output. It is a price ceiling that decreases producer surplus as compared to the free market equilibrium price and output.
Welfare Analysis 23 Which of the following is NOT an example of a constraint limiting a decision? Peter opts to purchase frozen pizza for an upcoming party; he doesn't have enough money to have pizza delivered. Frank decides to wait until he can afford to put 20% down on a new house, and continues to rent. Susan can't apply for the job she really wants because the hours conflict with her university classes. Bella decides not to purchase another pair of shoes; she thinks they are too similar to those she already owns.
Resource Allocation for Consumers 24 An estimate of the money and paperwork spent complying with environmental regulations could be compared to the advantages of cleaning up pollution.
This method of determining the value of the environment is known as __________. cost-benefit analysis healthcare costs hedonic pricing
contingent valuation
Assessing Costs of Waste and Pollution--Environmental Economics 25 Assuming ceteris paribus, which of the following is FALSE? When the price of a good rises, the quantity supplied of that good rises. When the price of a good falls, the quantity supplied of that good falls. When the price of a good falls, the quantity demanded of that good rises. When the price of a good rises, the quantity demanded of that good rises.
Demand Supply