# UNIT 4 PRACTICE EXAM

Size: px
Start display at page:

Transcription

1 UNIT 4 PRACTICE EXAM 1. The prices paid for resources affect A. the money incomes of households in the economy B. the allocation of resources among different firms and industries in the economy C. the quantities of different resources employed to produce a particular product D. all of the above 2. The demand for a resource is derived from the A. marginal productivity of the resource and price of the good or service produced from it B. marginal productivity of the resource and the price of the resource C. price of the resource and the price of the good or service produced from it D. price of the resource and the quantity of the resource demanded 3. The law of diminishing returns explains why A. the MRP of an input in a purely competitive market decreases as a firm increases the quantity of an employed resource B. the MRC of an input in a purely competitive market decreases as a firm increases the quantity of an employed resource C. resource demand is a derived demand D. there are substitution and output effects for resources Use the following table for a purely competitive market to answer questions At a wage rate of \$15, the firm will choose to employ A. 2 workers B. 3 workers C. 4 workers D. 5 workers 5. At a wage rate of \$30, the firm will choose to employ A. 2 workers B. 3 workers C. 4 workers D. 5 workers 6. If the product price increases to a constant \$8, then at a wage rate of \$30 the firm will choose to employ A. 2 workers B. 3 workers C. 4 workers D. 5 workers Use the graph below to answer questions Assume that the quantities of other resources the firm employs remain constant. 7. If the product the firm produces sells for a constant \$3 per unit, the marginal revenue product of the 4th unit of the resource is A. \$3 B. \$6 C. \$9 D. \$12 8. If the firm's product sells for a constant \$3 per unit and the price of the resource is a constant \$15, the firm will employ how many units of the resource? A. 2 B. 3 C. 4 D If the firm can sell 14 units of output at a price of \$1 per unit and 18 units of output at a price of \$0.90 per unit, the marginal revenue product of the 3rd unit of the resource is A. \$4 B. \$3.60 C. \$2.20 D. \$0.40

2 10. If the firm can sell 8 units at a price of \$1.50, 14 units at a price of \$1.00, 18 units at a price of \$0.90, 21 units at a price of \$0.70, and 23 units at a price of \$0.50, then the firm is A. maximizing profits at a product price of \$0.50 B. minimizing its costs at a product price of \$1.00 C. selling in an imperfectly competitive market D. selling in a purely competitive market 11. As a firm that sells its product in an imperfectly competitive market increases the quantity of a resource it employs, the marginal revenue product of that resource falls because A. the price paid by the firm for the resource falls B. the marginal product of the resource falls C. the price at which the firm sells its product falls D. both the marginal product and the price at which the firm sells its product fall 12. Which of the following would increase a firm's demand for a particular resource? A. an increase in the prices of complementary resources used by the firm B. a decrease in the demand for the firm's product C. an increase in the productivity of the resource D. an increase in the price of the particular resource 13. The substitution effect indicates that a firm will use A. more of an input whose relative price has decreased B. more of an input whose relative price has increased C. less of an input whose relative price has decreased D. less of an input whose relative price has remained constant 14. Two resource inputs, capital and labor, are complementary and used in fixed proportions. A decrease in the price of capital will A. increase the demand for labor B. decrease the demand for labor C. decrease the quantity demanded for labor D. have no effect because the relationship is fixed 16. A firm is allocating its expenditure for resources in a way that will result in the least total cost of producing any given output when the A. amount the firm spends on each resource is the same B. marginal revenue product of each resource is the same C. marginal product of each resource is the same D. marginal product per dollar spent on the last unit of each resource is the same 17. A business is employing inputs such that the marginal product of labor is 20 and the marginal product of capital is 45. The price of labor is \$10 and the price of capital is \$15. If the business wants to minimize costs, then it should A. use more labor and less capital B. use less labor and less capital C. use less labor and more capital D. make no change in resource use 18. Assume that a profit-maximizing computer disk manufacturer is employing resources so that the MRP of the last unit hired for resource X is \$240 and the MRP of the last unit hired for resource Y is \$150. The price of resource X is \$80 and the price of resource Y is \$50. The firm should A. hire more of resource X and less of resource Y B. hire less of resource X and more of resource Y C. hire less of both resource X and resource Y D. hire more of both resource X and resource Y 19. A firm that hires resources in a purely competitive market is not maximizing its profits when A. the marginal revenue product of every resource is equal to 1 B. the marginal revenue product of every resource is equal to its price C. the ratio of the marginal revenue product of every resource to its price is equal to 1 D. the ratio of the price of every resource to its marginal revenue product is equal to 1

3 Use the table below to answer the following question. 20. Assume that a purely competitive firm uses two resources -- labor (L) and capital (C) -- to produce a product. In which situation would the firm be maximizing profit? A. A B. B C. C D. D 21. A characteristic of a purely competitive labor market would be A. firms hiring different types of labor B. workers supplying labor under a union contract C. wage taker behavior by the firms D. price maker behavior by the firms 22. The supply curve for labor in a purely competitive market is upward sloping because A. opportunity costs are rising B. the marginal resource cost is constant C. the wage rate paid to workers falls D. the marginal revenue product rises 23. The individual firm which hires labor under purely competitive conditions faces a supply curve for labor which A. is perfectly inelastic B. is of unitary elasticity C. is perfectly elastic D. slopes upward from left to right 24. All of the following are characteristics of a monopsonist except: A. there is only a single buyer of a particular kind of labor B. the type of labor is relatively immobile C. the wage rate it must pay workers varies directly with the number of workers it employs D. the supply curve is the marginal resource cost curve 25. A monopsonist pays a wage rate which is A. greater than the marginal revenue product of labor B. equal to the marginal revenue product of labor C. equal to the firm's marginal labor cost D. less than the marginal revenue product of labor 26. If a firm employs resources in imperfectly competitive markets, to maximize its profits the marginal revenue product of each resource must equal A. its marginal product B. its marginal resource cost C. its price D Compared with a purely competitive labor market, a monopsonistic market will result in A. higher wage rates and a higher level of B. higher wage rates and a lower level of C. lower wage rates and a higher level of D. lower wage rates and a lower level of 28. Which would increase the demand for a particular type of labor? A. a decrease in the wages of that type of labor B. an increase in the prices of those resources which are substitutes for that type of labor C. an increase in the prices of the resources which are complements to that type of labor D. a decrease in the demand for the products produced by that type of labor 29. Industrial unions typically attempt to increase wage rates by A. imposing an above-equilibrium wage rate on employers B. increasing the demand for labor C. decreasing the supply of labor D. forming a bilateral monopoly

4 Use the graph below to answer questions If the firm employing labor were a monopsonist, the wage rate and the quantity of labor employed would be, respectively, A. \$14 and 300 B. \$13 and 400 C. \$14 and 400 D. \$13 and But if the market for this labor were purely competitive, the wage rate and the quantity of labor employed would be, respectively, A. \$14 and 300 B. \$13 and 400 C. \$14 and 400 D. \$13 and If the firm employing labor were a monopsonist and the workers were represented by an industrial union, the wage rate would be A. between \$13 and \$14 B. between \$13 and \$15 C. between \$14 and \$15 D. below \$13 or above \$15 Answer questions on the basis of the following labor market diagram, where D is the demand curve for labor, S is the supply curve for labor, and MRC is the marginal resource (labor) cost. 33. If this were a purely competitive labor market, the number of workers hired and the wage rate in equilibrium would be A. 4,000 and \$14 B. 4,000 and \$8 C. 6,000 and \$10 D. 8,000 and \$ If this were a monopsonistic labor market, the number of workers hired and the wage rate in equilibrium would be A. 4,000 and \$14 B. 4,000 and \$8 C. 6,000 and \$10 D. 8,000 and \$ Suppose an inclusive union seeks to maximize the of workers with the monopsonist. If successful, the number of workers employed and the wage rate would be A. 4,000 and \$14 B. 6,000 and \$12 C. 6,000 and \$10 D. 8,000 and \$ If the market were characterized as a bilateral monopoly, the number of workers hired and the wage rate in equilibrium would be A. 6,000 and \$10 B. 4,000 and \$14 C. 4,000 and \$8 D. indeterminate 37. A firm pays an equilibrium wage of \$10 an hour and the workers produce 10 units of output an hour. If the firm adopts an efficiency wage and it is successful, then the wage rate for these workers will A. rise and output will fall B. fall and output will rise C. rise and output will rise D. fall and output will fall 38. The price paid for a natural resource that is completely fixed in supply is A. profit B. interest C. rent D. a risk payment 39. In total, the supply of land is A. perfectly inelastic B. of unitary elasticity C. perfectly elastic D. elastic but not perfectly elastic

5 40. The economic rent from land will increase, ceteris paribus, whenever the A. price of land decreases B. demand for land increases C. demand for land decreases D. supply curve for land increases 41. Which of the following is most likely to shift the demand for aircraft mechanics to the right? (A) An increase in the demand for air travel (B) An increase in the price of a license necessary for aircraft mechanics (C) A decrease in the price of a license necessary for aircraft mechanics (D) A decrease in the demand for air travel (E) A decrease in the marginal productivity of aircraft mechanics 42. A firm is producing a given quantity of output by using labor, L, and capital, K. The marginal physical product of labor equals 5 bushels, while that of capital equals 10 bushels. In order to maximize its profit, (A) this firm should use less labor and more capital, provided the price of labor was \$20, while the price of capital was \$40. (B) this firm should use more labor and less capital, provided the price of labor was \$20, while the price of capital was \$40. (C) this firm should use less labor and more capital, provided the price of labor was \$40, while the price of capital was \$20. (D) this firm should use more labor and less capital, provided the price of labor was \$40, while the price of capital was \$20. (E) this firm should use less labor (raising MPP L ) and more capital (lowering MPP K ) until the two MPPs are equalized.

6 ANSWERS: 1. D 2. A 3. A 4. D 5. B 6. D 7. C 8. A 9. C 10. C 11. D 12. C 13. A 14. A 15. OOPS 16. D 17. C 18. D 19. A 20. B 21. C 22. A 23. C 24. D 25. D 26. B 27. D 28. B 29. A 30. D 31. C 32. B 33. C 34. B 35. C 36. D 37. C 38. C 39. A 40. B 41. A 42. C

### Demand & Supply of Resources

Resource Markets 1 Demand & Supply of Resources Resource demand Firms demand resources As long as marginal revenue exceeds marginal cost To maximize profit Resource supply People supply resources To the

### Cost-minimizing input combinations. Rush October 2014

Cost-minimizing input combinations Rush October 2014 Today s objectives Review marginal revenue productivity and firm resource demand Look at the optimal combination of resources for the competitive firm

### Eight Labor Market Models - SUMMARY

Eight Labor Market Models - SUMMARY 1 Eight Labor Market Models 1. Competitive labor market in a competitive product market 2. Competitive labor market in an imperfectly competitive product market 3. Monopsony

### Input Demand: The Labor and Land Markets

Chapter 10 Input Demand: The Labor Prepared by: Fernando & Yvonn Quijano 2007 Prentice Hall Business Publishing Principles of Economics 8e by Case and Fair Input Demand: The Labor 1 2 10 Chapter Outline

### Labor markets and wage determination

Labor markets and wage determination LABOR, WAGES, AND EARNINGS Wages Defined... Wages - - Salary - - Earnings Wage Rate Nominal Wages Real Wages International differences... GLOBAL PERSPECTIVE Hourly

### ****** 1. How is the demand for an input dependent upon the demand for an output? 2. Given a wage, how does a firm decide how many people to hire?

1 Chapter 4- Income distribution and factor pricing Syllabus-Input markets: demand for inputs; labour markets, land markets, profit maximisation condition in input markets, input demand curves, distribution

### SUMMARY OF THE MODELS OF UNIT 4

SUMMARY OF THE MODELS OF UNIT 4 Chapter 13: Eight Labor Market Models 1. Competitive labor market in a competitive product market 2. Competitive labor market in an imperfectly competitive product market

### 6. The law of diminishing marginal returns begins to take effect at labor input level: a. 0 b. X c. Y d. Z

Chapter 5 MULTIPLE-CHOICE QUESTIONS 1. The short run is defined as a period in which: a. the firm cannot change its output level b. all inputs are variable but technology is fixed c. input prices are fixed

### Microeconomics. Use the graph below to answer question number 3

More Tutorial at Microeconomics 1. Opportunity costs are the values of the: a. minimal budgets of families on welfare b. hidden charges passed on to consumers c. monetary costs of goods and services *

### Microeconomics. Use the graph below to answer question number 3

More Tutorial at Microeconomics 1. Opportunity costs are the values of the: a. minimal budgets of families on welfare b. hidden charges passed on to consumers c. monetary costs of goods and services *

### Factors of Production and Factor Markets

Factors of Production and Factor Markets Factors of production: the inputs used to produce goods and services. Labor Land Capital: the equipment and structures used to produce goods and services. Prices

### MICROECONOMICS SECTION I. Time - 70 minutes 60 Questions

MICROECONOMICS SECTION I Time - 70 minutes 60 Questions Directions: Each of the questions or incomplete statements below is followed by five suggested answers or completions. Select the one that is best

### Perfectly Competitive Product Market and Monopsony Factor Market

Perfectly Competitive Product Market and Monopsony Factor Market Perfect Competition Resource Markets Monopsony Imperfect Competition: Monopsony Characteristics: One firm hiring workers The firm is large

### INTI COLLEGE MALAYSIA UNIVERSITY FOUNDATION PROGRAMME ECO 185 : BASIC ECONOMICS 1 RESIT EXAMINATION : APRIL 2003 SESSION

ECO 185 (R) / Page 1 of 10 INTI COLLEGE MALAYSIA UNIVERSITY FOUNDATION PROGRAMME ECO 185 : BASIC ECONOMICS 1 RESIT EXAMINATION : APRIL 2003 SESSION Answer ALL questions in SECTION A in the OMR sheet provided

### Chapter 28 The Labor Market: Demand, Supply, and Outsourcing

Chapter 28 The Labor Market: Demand, Supply, and Outsourcing Learning Objectives After you have studied this chapter, you should be able to 1. define marginal factor cost, marginal physical product of

### Refer to the given data. At the profit-maximizing level of employment, this firm's total labor cost will be: A. \$16. B. \$30. C. \$24. D. \$32.

1. The more work people do, all other things unchanged, the: A) more their free time. B) greater their nonmarket use of time. C) less income they have. D) less leisure they have. 2. A wage will the leisure.

### LO AGENDA Tues 12/1. QOD #37: Work with benefits Wage Determination Monopsony Unions (Effect of Unions wksht) HW: Read pp Q #7,9

LO1 13-1 AGENDA Tues 12/1 QOD #37: Work with benefits Wage Determination Monopsony Unions (Effect of Unions wksht) HW: Read pp 273-282 Q #7,9 10-2 QOD #37: Work with Benefits Workers are compensated by

### Econ190 May 1, No baseball caps are allowed (turn it backwards if you have one on).

Heather Krull Final Exam Econ190 May 1, 2006 Name: Instructions: 1. Write your name above. 2. No baseball caps are allowed (turn it backwards if you have one on). 3. Write your answers in the space provided

### Markets for Factor Inputs

C H A P T E R 14 Markets for Factor Inputs Prepared by: Fernando & Yvonn Quijano CHAPTER 14 OUTLINE 14.1 Competitive Factor Markets 14.2 Equilibrium in a Competitive Factor Market 14.3 Factor Markets with

### Choose the one alternative that BEST completes the statement or answers the question.

CHAPTER 3 The Demand for Labor In addition to the multiple choice and quantitative problems listed here, you should answer review questions 1, 3, 5, and 7 and problems 1-4 at the end of chapter 3. Multiple-Choice

### causing MARGINAL PRODUCT OF LABOR to fall beyond some point. iv. PRODUCT PRICE : Because this is a competitive market, the PRODUCT PRICE = MARKET

WAGE DETERMINATION I. A FOCUS ON LABOR a. The basic principles for labor also apply to other factors of production b. About 70% of all income in the U.S. flows to households in the form of wages and salaries.

### To produce more beach balls, you must give up ever increasing quantities of ice cream cones.

Unit 01: Basic Concepts (Macro/Micro) Scarcity The Economic Problem: Unlimited wants, limited economic resources Factors of Production: -Land -Labor -Capital -Entrepreneurship Big 3 Questions: -What to

### Test Yourself: Labor

Test Yourself: Labor If the workers took a notion they could stop all speeding trains; every ship upon the ocean they could tie with mighty chains. Every wheel in the creation every mine and every mill;

### CASE FAIR OSTER PRINCIPLES OF MICROECONOMICS E L E V E N T H E D I T I O N. PEARSON 2014 Pearson Education, Inc. Publishing as Prentice Hall

PRINCIPLES OF MICROECONOMICS E L E V E N T H E D I T I O N CASE FAIR OSTER PEARSON Publishing as Prentice Hall Prepared by: Fernando Quijano w/shelly Tefft 2 of 23 Input Demand: The Labor and Land Markets

### Unit 5: The Resource Market. (The Factor Market or Input Market)

Unit 5: The Resource Market (The Factor Market or Input Market) 1 2 The Circular Flow Model The Product Market- The place where goods and services produced by businesses are sold to households. The Resource

### BACHELOR OF BUSINESS. Sample FINAL EXAMINATION

BACHELOR OF BUSINESS Sample FINAL EXAMINATION Subject Code : ECO201 Subject Name : LABOUR ECONOMICS This examination carries 50% of the total assessment for this subject. Examiner(s) Moderator(s) Joyce

### Microeconomics: MIE1102

TEXT CHAPTERS TOPICS 1, 2 ECONOMICS, ECONOMIC SYSTEMS, MARKET ECONOMY 3 DEMAND AND SUPPLY. MARKET EQUILIBRIUM 4 ELASTICITY OF DEMAND AND SUPPLY 5 DEMAND & CONSUMER BEHAVIOR 6 PRODUCTION FUNCTION 7 COSTS

### Chapter 17: Labor Markets

Chapter 17: Labor Markets Econ 102: Introduction to Microeconomics 1 1.1 Goals of this class Goals of this class Learn how employment and wages are determined in equilibrium. Learn what can shift labor

### Eco402 - Microeconomics Glossary By

Eco402 - Microeconomics Glossary By Break-even point : the point at which price equals the minimum of average total cost. Externalities : the spillover effects of production or consumption for which no

### Economics N. Gregory Mankiw. The Markets for the Factors of Production. In this chapter, look for the answers to these questions CHAPTER

Seventh Edition Principles of Economics N. Gregory Mankiw CHAPTER 18 The Markets for the Factors of Production In this chapter, look for the answers to these questions hat determines a competitive firm

### Micro Semester Review Name:

Micro Semester Review Name: The following review is set up to emphasize certain concepts, graphs and terms. It is the responsibility of the individual teachers to emphasize and review the analysis aspects

### Preview from Notesale.co.uk Page 6 of 89

Guns Butter 200 0 175 75 130 125 70 150 0 160 What it shows: the maximum combinations of two goods an economy can produce with its existing resources and technology; an economy can produce at points on

### SCHOOL OF ACCOUNTING AND BUSINESS BSc. (APPLIED ACCOUNTING) GENERAL / SPECIAL DEGREE PROGRAMME END SEMESTER EXAMINATION JULY 2016

All Rights Reserved No. of Pages - 08 No of Questions - 08 SCHOOL OF ACCOUNTING AND BUSINESS BSc. (APPLIED ACCOUNTING) GENERAL / SPECIAL DEGREE PROGRAMME END SEMESTER EAMINATION JULY 2016 BEC 30325 Managerial

### Test Yourself: Labor

Test Yourself: Labor If the workers took a notion they could stop all speeding trains; every ship upon the ocean they could tie with mighty chains. Every wheel in the creation every mine and every mill;

### Introduction. Learning Objectives. Learning Objectives. Chapter 29. Labor Demand and Supply

Chapter 29 Labor Demand and Supply Introduction When the trucking industry experienced an expansion at the end of the 2001 recession, there were expectations of more employment and higher wages for truck

### Please recall how TP, MP and AP are plotted

Please recall how TP, MP and AP are plotted The Marginal Revenue Product (MRP) The increase in total revenue for every additional labor unit employed. Units of Labor TP MP Product Price TR MRP ( TR/ L)

### Microeconomics. Use the Following Graph to Answer Question 3

More Tutorial at www.dumblittledoctor.com Microeconomics 1. To an economist, a good is scarce when: *a. the amount of the good available is less than the amount that people want when the good's price equals

### Managerial Economics Prof. Trupti Mishra S.J.M School of Management Indian Institute of Technology, Bombay. Lecture -29 Monopoly (Contd )

Managerial Economics Prof. Trupti Mishra S.J.M School of Management Indian Institute of Technology, Bombay Lecture -29 Monopoly (Contd ) In today s session, we will continue our discussion on monopoly.

### 2. Why is a firm in a purely competitive labor market a wage taker? What would happen if it decided to pay less than the going market wage rate?

Chapter Wage Determination QUESTIONS. Explain why the general level of wages is high in the United States and other industrially advanced countries. What is the single most important factor underlying

### 13 Wage Determination

13 Wage Determination Labor, Wages,and Earnings Wages Price paid for labor Direct pay plus fringe benefits Wage rate Nominal wage Real wage General level of wages LO1 13-2 Global Perspective LO1 13-3 Role

### AP Microeconomics Review With Answers

AP Microeconomics Review With Answers 1. Firm in Perfect Competition (Long-Run Equilibrium) 2. Monopoly Industry with comparison of price & output of a Perfectly Competitive Industry (which means show

### Chapter 14. Chapter Outline

Chapter 14 Labor Chapter Outline A Perfectly Competitive Firm s Demand for Labor Market Demand Curve for Labor An Imperfect Competitor s Demand for Labor Labor Supply Market Supply Curve Monopsony Minimum

Chapter 14 Labor Chapter Outline A Perfectly Competitive Firm s Demand for Labor Market Demand Curve for Labor An Imperfect Competitor s Demand for Labor Labor Supply Market Supply Curve Monopsony Minimum

### Practice Exam 3: S201 Walker Fall with answers to MC

Practice Exam 3: S201 Walker Fall 2007 - with answers to MC Print Your Name: I. Multiple Choice (3 points each) 1. If marginal utility is falling then A. total utility must be falling. B. marginal utility

### Labour Demand Lecturer: Dr. Priscilla T. Baffour

Lecture 3 Labour Demand Lecturer: Dr. Priscilla T. Baffour Determinants of Short Run Demand for Labour The wage rate: The wage rate is a very important determinant of labour demand. Thus the higher the

### FINAL - ECONOMICS 2023 AUGUST 4, Name S.S.#

FINAL - ECONOMICS 2023 AUGUST 4, 2000 Name S.S.# This exam contains 30 multiple choice questions, each worth 2.5 points (100 point total). All questions on this exam should be answered. You have 75 minutes

### Economics. 18 this chapter, The Markets for the Factors of Production. look for the answers to these questions: N. Gregory Mankiw.

C H A T E R In 8 this chapter, look for the answers to these questions: The Markets for the Factors of roduction R I N C I E S O F Economics N. Gregory Mankiw remium oweroint Slides by Ron Cronovich 29

### 12-1 (4) EQ: What is Derived Demand? EQ: What is Marginal Physical Product? Factor Demand

E: What is a Factor Market? 12-1 (4) o far, when discussing markets, we have focused on the supply of and demand for products that consumers purchase and consume. However, there are also markets for the

### Unit V: Factor Markets. Problem Set #5 Points Distribution

Unit V: Factor Markets Problem Set #5 Points Distribution Question #1 Real World Application of Key Concepts 5 Points EACH 2 Points Definition 3 Points Clear Example 1. Derived Demand Definition (2 points):

### Eco 202 Exam 2 Spring 2014

Eco 202 Exam 2 Spring 2014 PLEASE ANSWER 50 OF THE FOLLOWING QUESTIONS. 1. Jon Brooks quit his job in a bicycle shop, where he earned \$15,000 per year, to become a graduate student in economics. At the

### Managerial Economics, 01/12/2003. A Glossary of Terms

A Glossary of Terms The Digital Economist -A- Abundance--A physical or economic condition where the quantity available of a resource exceeds the quantity desired in the absence of a rationing system. Arbitrage

### Unit 1: Introduction to Economics

Microeconomics Syllabus AP Economics Textbooks & Resources: McConnell, Campbell & Stanley Brue. Economics: Principles, Problems, and Policies. 16 th ed., New York, NY: McGraw Hill, 2005. Morton, John.

Question # 1 of 15 ( Start time: 01:24:42 PM ) Total Marks: 1 A person with a diminishing marginal utility of income: Will be risk averse. Will be risk neutral. Will be risk loving. Cannot decide without

### Factors of Prodution. Unit 3: The Nature and Function of Factor Markets

Factors of Prodution Unit 3: The Nature and Function of Factor Markets 4 Factors of Production Labor Capital Land Entrepreneurship Factor Markets Factors of production (labor, capital, and land) are paid

### The University of Zambia School of Humanities and Social Sciences The Department of Economics

The University of Zambia School of Humanities and Social Sciences The Department of Economics ECN 1115 INTRODUCTION TO MICRO ECONOMICS- ASSIGNMENT 1 Attempt ALL Questions and briefly explain why your answer

### 2000 AP Microeconomics Exam Answers

2000 AP Microeconomics Exam Answers 1. B Scarcity is the main economic problem!!! 2. D If the wages of farm workers and movie theater employee increase, the supply of popcorn and movies will decrease (shift

### Marginal Cost. Average Cost 0 20 NA NA NA a) Is this a short run or long run information on cost? Why?

McPeak PPA 723 Exam 2 Name: All numbered questions are worth 2 points each, sub questions worth an equal share of these 2 points. 1) Complete the following table. Output Fixed Cost Total Cost Variable

### 1 of 14 5/1/2014 4:56 PM

1 of 14 5/1/2014 4:56 PM Any point on the budget constraint Gives the consumer the highest level of utility. Represent a combination of two goods that are affordable. Represents combinations of two goods

### CONTENTS. Introduction to the Series. 1 Introduction to Economics 5 2 Competitive Markets, Demand and Supply Elasticities 37

CONTENTS Introduction to the Series iv 1 Introduction to Economics 5 2 Competitive Markets, Demand and Supply 17 3 Elasticities 37 4 Government Intervention in Markets 44 5 Market Failure 53 6 Costs of

### Unit 5: The Resource Market. (aka: The Factor Market or Input Market)

Unit 5: The Resource Market (aka: The Factor Market or Input Market) 1 Perfect Competition Resource Markets Monopsony Perfectly Competitive Labor Market Characteristics: Many small firms are hiring workers

### MICROECONOMICS - CLUTCH CH PERFECT COMPETITION.

!! www.clutchprep.com CONCEPT: THE FOUR MARKET MODELS Market structure describes the environment in which a firm operates, determined by the Perfect Competition Monopolistic Competition Oligopoly Monopoly

### Microeconomics. Basic Information

Microeconomics Basic Information Title: Microeconomics Code: ECN101 Credit Hours: 3 C.H. Prerequisite(s): None Classification: Compulsory Faculty Core Course Description Microeconomics is a basic core

### Section I, Multiple Choice (40 points)

ECO 230, Final Exam Name: Summer I, 2003 Eastern Kentucky University Dr. Ruppel Section I, Multiple Choice (40 points): Circle the letter in front of the best answer. 1. If Canada can increase its production

### Government Regulation

Government Regulation What do you think is the market price for renting an apartment in Plainfield? What happens to the quantity of demand and supply after the price change? List four outcomes that would

### SHORT QUESTIONS AND ANSWERS FOR ECO402

SHORT QUESTIONS AND ANSWERS FOR ECO402 Question: How does opportunity cost relate to problem of scarcity? Answer: The problem of scarcity exists because of limited production. Thus, each society must make

### MICRO EXAM REVIEW SHEET

MICRO EXAM REVIEW SHEET 1. Firm in Perfect Competition (Long-Run Equilibrium) 2. Monopoly Industry with comparison of price & output of a Perfectly Competitive Industry 3. Natural Monopoly with Fair-Return

### AP Microeconomics Review Sample Questions

AP Microeconomics Review Sample Questions Sample Multiple-Choice Questions The following are examples of the kinds of multiple-choice questions found on the examination. The distribution of topics and

### Answer all the following questions:-

Answer all the following questions:- QUESTION ONE / TRUE ( ) OR FALSE (X) / (10 MARKS) 1. Total revenue = price x sold quantity. 2. The purpose of a production function is to tell us just how much output

### Practice Exam 3 Questions

1. What is the main goal of a firm? A) To be as big as possible. B) To hire as many people as possible. C) To make as much profit as possible. D) All of the above answers are correct. Practice Exam 3 Questions

### Ecn Intermediate Microeconomic Theory University of California - Davis June 11, 2009 Instructor: John Parman. Final Exam

Ecn 100 - Intermediate Microeconomic Theory University of California - Davis June 11, 2009 Instructor: John Parman Final Exam You have until 8pm to complete the exam, be certain to use your time wisely.

### Essential Graphs for Microeconomics

Essential Graphs for Microeconomics Basic Economic Concepts! roduction ossibilities Curve Good X A F B C W Concepts: oints on the curve-efficient oints inside the curve-inefficient oints outside the curve-unattainable

### Unit 5. Resource Market. (aka: The Factor/Input/Labor Market)

Unit 5 Resource Market (aka: The Factor/Input/Labor Market) 2 C Producers Demand In co me Households Supply s e Re c so r u ur o s ce e s R \$ t os The Circular Flow Model Businesses s G er ood vic s &

### Postgraduate Diploma in Marketing December 2017 Examination Economic and Legal Impact (Econ)

Postgraduate Diploma in Marketing December 2017 Examination Economic and Legal Impact (Econ) Date: 20 December 2017 Time: 0830 Hrs 1130 Hrs Duration: Three (03) Hrs ) Total marks for this paper is 100

### Producing Goods & Services

Producing Goods & Services Supply is the quantities of a product or service that a firm is willing and able to make available for sale at all possible prices. The Law of Supply states that the quantity

### Econ 101, section 3, F06 Schroeter Exam #2, Red. Choose the single best answer for each question.

Econ 101, section 3, F06 Schroeter Exam #2, Red Choose the single best answer for each question. 1. Which of the following is consistent with elastic demand? a. A 10% increase in price results in a 5%

### Specific Learning Goals/Benchmarks and Student Assessment. AP Macroeconomics

Unit Bartram Trail HS Specific Learning Goals/Benchmarks and Student Assessment AP Macroeconomics # Benchmark Assessment 1 1 1 2 1 3 1 4 2 5 2 6 3 7 3 8 3 9 3 10 3 11 4 12 4 13 4 14 4 15 4 16 4 17 Define

### The Demand for Resources. Resource Pricing

The Demand for Resources Resource Pricing Firms demand resources Focus on labor Resource prices are important Money-income determination Cost minimization Resource allocation Policy issues LO - Resource

### GACE Economics Assessment Test I (038) Curriculum Crosswalk

Subarea I. Fundamental Economic Concepts (20%) Objective 1: Demonstrates an understanding of the fundamental concepts of economics A. Understands the concepts of scarcity, choice, and opportunity cost

### ECO 2023 Principles of Microeconomics Fall 2013 Practice Test #2. 1. Which of the following are factors of production?

ECO 2023 Principles of Microeconomics Fall 2013 Practice Test #2 1. Which of the following are factors of production? A. Output in a production function. B. Productivity. C. Land, labor, capital, and entrepreneurship.

### Using Elasticity to Predict Cost Incidence. A Definition & A Question. Who pays when payroll tax added to wage rate?

Using Elasticity to Predict Cost Incidence A Definition & A Question Definition of Incidence: the fact of falling upon; in this case, where costs fall A Question for you what does a statement like this

### NB: STUDENTS ARE REQUESTED IN THEIR OWN INTEREST TO WRITE LEGIBLY AND IN INK.

1 INFORMATION & INSTRUCTIONS: DURATION: THREE (3) HOURS TOTAL MARKS: 300 INTERNAL EXAMINER : PROFESSOR D. MAHADEA EXTERNAL EXAMINER: MR R. SIMSON NB: STUDENTS ARE REQUESTED IN THEIR OWN INTEREST TO WRITE

### CLEP Microeconomics Practice Test

Practice Test Time 90 Minutes 80 Questions For each of the questions below, choose the best answer from the choices given. 1. In economics, the opportunity cost of an item or entity is (A) the out-of-pocket

### Queen s University Department of Economics ECON 111*S

Queen s University epartment of Economics ECON 111*S Suggested Solutions to Take-Home Midterm Examination February 7, 2007 Instructor: Sharif F. Khan Page 1 of 9 Pages PART A TRUE/FALSE/UNCERTAIN QUESTIONS

### INTI COLLEGE MALAYSIA FOUNDATION IN BUSINESS INFORMATION TECHNOLOGY (CFP) ECO105: ECONOMICS 1 FINAL EXAMINATION: JANUARY 2006 SESSION

ECO105 (F) / Page 1 of 12 Section A INTI COLLEGE MALAYSIA FOUNDATION IN BUSINESS INFORMATION TECHNOLOGY (CFP) ECO105: ECONOMICS 1 FINAL EXAMINATION: JANUARY 2006 SESSION Instructions: This section consists

### ESSENTIAL KNOWLEDGE. Names: Microeconomics Unit 1: Basic Economic Concepts. Scarcity. Opportunity Costs. Economic systems (i.e. market and command)

Names: Microeconomics Unit 1: Basic Economic Concepts ESSENTIAL KNOWLEDGE Scarcity Opportunity Costs Economic systems (i.e. market and command) Absolute advantage Determine comparative advantage Graph

### 1. Fill in all requested information above and on the answer sheet.

Economics 101 Professor H. Quirmbach Final Exam PRINT NAME STUDENT ID NO. GROUP TIME SCORE INSTRUCTIONS: 1. Fill in all requested information above and on the answer sheet. 2. There are 40 multiple choice

### Application: the effect of immigration on domestic wages

LABOUR DEMAND Application: the effect of igration on domestic wages Case 1. Immigrants and nonigrants are perfect substitutes in production W S 0 S 1 Law of one price: all workers earn the same wage W

### Ecn Intermediate Microeconomics University of California - Davis December 7, 2010 Instructor: John Parman. Final Exam

Ecn 100 - Intermediate Microeconomics University of California - Davis December 7, 2010 Instructor: John Parman Final Exam You have until 12:30 to complete this exam. Be certain to put your name, id number

### Unions and Labor Market Monopoly Power

29 Unions and Labor Market Monopoly Power Learning Objectives After you have studied this chapter, you should be able to 1. outline the essential history of the labor union movement; 2. discuss the current

### ECON 1001 A. Come to the PASS workshop with your mock exam complete. During the workshop you can work with other students to review your work.

It is most beneficial to you to write this mock midterm UNDER EXAM CONDITIONS. This means: Complete the midterm in 1.5 hour(s). Work on your own. Keep your notes and textbook closed. Attempt every question.

### Case: An Increase in the Demand for the Product

1 Appendix to Chapter 22 Connecting Product Markets and Labor Markets It should be obvious that what happens in the product market affects what happens in the labor market. The connection is that the seller

### Chapter 12 outline The shift from consumers to producers

Chapter 12 outline The shift from consumers to producers Resource markets are markets in which business firms demand factors of production from household suppliers. (As you can see the tables are now turned

### Eastern Mediterranean University Faculty of Business and Economics Department of Economics Fall Semester

Duration: 50 minutes Eastern Mediterranean University Faculty of Business and Economics Department of Economics 2016-17 Fall Semester ECON101 - Introduction to Economics I Quiz 2 Answer Key 16 December

### Admission Examination in Economics. Version A

MA in Economic Analysis Admission Examination in Economics Version A NAME: Instructions: 1. Do not turn this page until told to do so. 2. The exam consists of 20 questions that are all equally weighted.

### Section 1 Understanding Supply

Chapter 5 - Supply Section 1 Understanding Supply Supply the amount of goods available Law of Supply Tendency for suppliers to offer more of a good at a higher price. Law of Supply Price As price increases

### Practice Midterm Exam #2. Economics 370 University of Victoria - Fall 2016

Name Student # Practice Midterm Exam #2 Economics 370 University of Victoria - Fall 2016 Prof. H.J. Schuetze The midterm exam consists of ten multiple choice questions and two short-answer style questions.

### 1 Macroeconomics SAMPLE QUESTIONS

Sample Multiple-Choice Questions Circle the letter of each correct answer. 1. The crucial problem of economics is (A) establishing a fair tax system. (B) providing social goods and services. (C) developing

### INTRODUCTION ECONOMIC PROFITS

INTRODUCTION This chapter addresses the following key questions: What are profits? What are the unique characteristics of competitive firms? How much output will a competitive firm produce? Chapter 7 THE