Principles of Microeconomics Essay

1) If reasonable movie ticket prices get hold by or so 5 percent and attendance falls by closely 2 percent, other things cosmos equal, the elasticity of demand for movie tickets is aboutB. 0.42) A basic difference betwixt microeconomics and macroeconomics is that microeconomicsC. examines the choices made by single participants in an economy, while macroeconomics considers the economys overall performance3) An economic expert who is studying the relationship among the m acey supply, interest rates, and the rate of largeness is engaged in B. macroeconomic research4) After several eld of slow economic growth, world demand for petroleum began to rise promptly in the 1990s. Much of the append in demand was met by superfluous supplies from sources outside the Organization of Petroleum Exporting Countries (OPEC). OPEC, during this time, was unable to restrain production among members in its effort to lift fossil oil prices. What outperform describes these events?C. The ris e in demand shifted the demand for oil to the right. As price rose, the measure of oil supplied rose.5) Price elasticity of demand is theD. percentage change in quantity demanded of a good divided by the percentage change in the price of that good6) The distinction betwixt supply and the quantity supplied is best made by saying thatB. supply is represented graphically by a contract and the quantity supplied as a point on that switch off associated with a particular price7) When labor is the variable input, the average product equals theD. quantity of make divided by the number of workers8) The increase in output obtained by hiring an additional worker is known asB. the marginal product9) Which of the following is the best example of a vast-term decision?A. An automobile manufacturing troupe is considering whether or not to invest in robotic equipment to develop a more cost-effective production technique.10) Other things being equal, when average productivity falls,D. average v ariable cost must rise11) According to economist Colin Camerer of the California Institute of Technology, many New York hack writer drivers decide when to finish work by setting an income goal for themselves. If this is true, thusly on busy daytimes when the effective hourly wage is higher(prenominal), hacker drivers willB. work fewer hours than they will on slower days12) A star signs demand for labor is derived from theD. demand for its output13) Owen runs a delivery business and currently employs leash drivers. He owns three vans that employees use to make deliveries, but he is considering hiring a fourth driver. If he removes a fourth driver, he can schedule breaks and lunch hours so all three vans ar 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 whole is equal toC. the difference between pass judgment average price and accepted average total cost15) If a firm in a suddenly contendery market experiences a technological breakthrough,B. other firms would capture out about it immediately16) A significant difference between monopoly and perfect competition is thatC. the monopolists demand curve is the industriousness demand curve, while the competitive firms demand curve is perfectly 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 retentive as marginal cost is below marginal revenue, a perfectly competitive firm shouldA. increase production20) Because a monopolistic competitor has some monopoly power, pub licize 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 plagiarise turbines to generate electrical energy have pitted environmentalist against environmentalist. Members of the Kansas Sierra Club support the turbines as a way to reduce fossil fuel usage, while local anesthetic chapters of the Nature 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 military action is not reflected in the market price23) A merger between a textile mill and a clothing manufacturing company would be considered aB. vertical merger24) A merger between a baby food company and a life insurance company would be considered aC. conglomerate merger2 5) The fact that U.S. managers salaries are comfortably greater than those of comparable managers in Japan may be connect toA. an increase in the demand for CEOs26) Suppose people freely fill to spend 40 percent of their income on health care, but the governance decides to tax 40 percent of a persons income to supply the very(prenominal) level of coverage as before. What can be verbalize 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 comparatively small because the US imports most of its clothing. A clear result of the importing 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. peg down according to their comparative advantage29) Which of the following is an example of the law of one price?D. Because their countries have similar i nstitutions, the price paid for a ready reckoner 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 country subsidizes the cost of energy to consumers to help alleviate the burden of higher energy costs?C. It encourages the consumption of too much fuel at the expense of other goods.