Principles of Microeconomics Essay

1) If amount movie ticket legal injurys rise by most 5 percent and attendance f exclusivelys by ab surface 2 percent, other things being fit, the elasticity of claim for movie tickets is activeB. 0.42) A basic difference between microeconomics and macroeconomics is that microeconomicsC. examines the choices make by individual participants in an economy, epoch macroeconomics considers the economys overall performance3) An economist who is canvass the relationship between the money supply, interest rates, and the rate of inflation is intermeshed in B. macroeconomic research4) After several years of slow up economic growth, world acquire for petroleum began to rise rapidly in the 1990s. Much of the increment in demand was met by additional supplies from sources outside the Organization of Petroleum Exporting Countries (OPEC). OPEC, during this time, was unable to restrain output among members in its effort to lift oil charges. What best describes these events?C. The rise in demand shifted the demand for oil to the right. As worth rose, the quantity of oil supplied rose.5) harm elasticity of demand is theD. percentage change in quantity demanded of a good divided by the percentage change in the equipment casualty of that good6) The distinction between supply and the quantity supplied is best made by saying thatB. supply is represented graphically by a rationalise and the quantity supplied as a item on that curve associated with a particular price7) When labor is the variable input, the mean(a) carrefour equals theD. quantity of output divided by the number of workers8) The increase in output obtained by hiring an additional worker is kn induce asB. the borderline product9) Which of the following is the best example of a long-run termination?A. An automobile manufacturing company is considering whether or non to invest in robotic equipment to create a more cost-effective production technique.10) Other things being equal, when average producti vity falls,D. average variable cost must rise11) check to economist Colin Camerer of the California Institute of Technology, many New York revenuei drivers fall when to finish work by setting an income goal for themselves. If this is true, then on busy days when the effective hourly wage is higher, taxi drivers go outB. work fewer hours than they will on slower days12) A hards demand for labor is derived from theD. demand for its output13) Owen runs a delivery business and currently employs three drivers. He owns three vans that employees delectation to make deliveries, but he is considering hiring a fourth part driver. If he hires a fourth driver, he can schedule breaks and lunch hours so all three vans are in constant use, allowing him to increase deliveries per day from 60 to 75. This will cost an additional $75 per day to hire the fourth driver. The marginal cost per delivery of increasing output beyond 60 deliveries per dayB. is $514) Expected economic profit per unit is equal toC. the difference between expected average price and expected average total cost15) If a firm in a utterly war-ridden grocery store experiences a technological breakthrough,B. other firms would find out about it immediately16) A significant difference between monopoly and perfective aspect competition is thatC. the monopolists demand curve is the industry demand curve, while the competitive firms demand curve is short elastic17) A monopoly firm is different from a competitive firm in thatC. a monopolist can influence market price while a competitive firm cannot18) The difference between a perfectly competitive firm and a monopolistically competitive firm is that a monopolistically competitive firm faces aD. downward-sloping demand curve and price exceeds marginal cost in equilibrium19) As long as marginal cost is below marginal revenue, a perfectly competitive firm shouldA. increase production20) Because a monopolistic competitor has several(prenominal) monopoly power, advertising to increase that monopoly power makes sense as long as the marginalC. benefit of advertising exceeds the marginal cost of advertising21) In the Flint Hills area of Kansas, proposals to build wind turbines to generate electricity experience pitted environmentalist a brightenst environmentalist. Members of the Kansas Sierra Club support the turbines as a way to press fossil fuel usage, while local chapters of the temper Conservancy say they will befoul the landscape. The Sierra Club argues that wind turbinesB. reduce negative externalities elsewhere in the economy22) When negative externalities are present, market failure often occurs becauseA. the marginal external cost resulting from the activity is not reflected in the market price23) A merger between a textile mill and a tog manufacturing company would be considered aB. vertical merger24) A merger between a sister food company and a life insurance company would be considered aC. conglomerate merger25) The fact th at U.S. managers salaries are substantially great than those of comparable managers in Japan may be related toA. an increase in the demand for CEOs26) Suppose people freely choose to transcend 40 percent of their income on health care, but the government decides to tax 40 percent of a persons income to provide the uniform level of coverage as before. What can be said about deadweight loss in each case?A. Taxing income results in deadweight loss, while purchasing health care on ones own does not result in deadweight loss.27) The U.S. textile industry is relatively down(p) because the US imports most of its clothing. A clear result of the importation of clothing isD. the price of clothing is lower than it would be without imports28) Countries can expect to gain from international trade as long as theyB. specialize correspond to their comparative advantage29) Which of the following is an example of the law of one price?D. Because their countries have similar institutions, the pric e paid for a computer in Germany and the United States are about the same when converted into the same currency.30) From the point of view of consumer and producer surplus, what problem may be created when a rural area subsidizes the cost of efficacy to consumers to help alleviate the burden of higher energy costs?C. It encourages the consumption of too much fuel at the outlay of othergoods.