Page 1

CLICK TO GET ANSWERS ECO 561 Final Exam 1) The advent of DVDs has virtually demolished the market for videocassettes. This is an example of: 2) If the demand for farm products is price inelastic, a good harvest will cause farm revenues to: 3) In a competitive market economy firms will select the least-cost production technique because: 4) If price is above the equilibrium level, competition among sellers to reduce the resulting: 5) Which of the following statements is true about productive and allocative efficiency? 6) Suppose that in 2007 Ford sold 500,000 Mustangs at an average price of $18,800 per car; in 2008, 600,000 Mustangs were sold at an average price of $19,500 per car. These statements: 7) If a firm in a purely competitive industry is confronted with an equilibrium price of $5, its marginal revenue: 8) A firm that is motivated by self interest should: 9) A firm is producing an output such that the benefit from one more unit is more than the cost of producing that additional unit. eco 561 final exam. This means the firm is: 10) In the short run the Sure-Screen T-Shirt Company is producing 500 units of output. Its average variable costs are $2.00 and its average fixed costs are $.50. The firm’s total costs: 11) In which of the following industries are economies of scale exhausted at relatively low levels of output? 12) Which of the following represents a long-run adjustment? 13) Paying an above-equilibrium wage rate might reduce unit labor costs by: 14) A firm can hire six workers at a wage rate of $8 per hour but must pay $9 per hour to all of its employees to attract a seventh worker. The marginal wage cost of the seventh worker is:


15) A profit-maximizing firm will: 16) Oligopoly is difficult to analyze primarily because: 17) In the long-run, a profit-maximizing monopolistically competitive firm sets it price: 18) Price is constant or given to the individual firm selling in a purely competitive market because: 19) Nonprice competition refers to: 20) Which of the following is not a possible source of natural monopoly? 21) The practice of price discrimination is associated with pure monopoly because: 22) A monopolistically competitive industry combines elements of both competition and monopoly. Eco 561 week 5 final. The monopoly element results from: 23) In an oligopolistic market: 24) Assume the several manufacturers of ceramic tile in a city reach a verbal agreement to establish the price of their product at 55 cents per tile. This best describes: 25) When economists view technological change as internal to the economy, they mean that it: 26) Those who contend that oligopolists are less likely than more competitive firms to engage in R&D say that: 27) Other things equal, a price discriminating monopolist will: 28) Inflation is undesirable because it: 29) The industries or sectors of the economy in which business cycle fluctuations tend to affect output the most are: 30) Suppose that nominal wages fall and productivity rises in a particular economy. Other things equal, the aggregate: 31) Expansionary fiscal policy is so named because it:


32) Kara voluntarily quit her job as an insurance agent to return to school full-time to earn an MBA degree. With degree in hand she is now searching for a position in management. Kara presently is: 33) Given the annual rate of inflation, the "rule of 70" allows one to: 34) Other things equal, a 10 percent decrease in corporate income taxes will: 35) Stabilizing a nation's price level and the purchasing power of its money can be achieved: 36) In a fractional reserve banking system: 37) ___________ purchasing power parity states that the difference between changes over time in product-price levels in two countries will be offset by the change in the exchange rate over this time. Eco 561 final. 38) Exchange rates are determined in the long-run by: 39) The quantity theory of the demand for money states that a country's money supply is proportional to:

Eco 561 week 6 final exam  

Eco 561 week 6 final exam

Read more
Read more
Similar to
Popular now
Just for you