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ECO 365 Tutorial

 

1) According to economist Colin Camerer of the California Institute of Technology, many New York taxi drivers decide 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 will

               

 

 

2) A firm's demand for labor is derived from the

               

 

 

3) Owen runs a delivery business and currently employs three drivers. He owns three vans that employees use to make deliveries, but he is considering hiring a fourth 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 day

 

 

 

4) Expected economic profit per unit is equal to

 

 

 

5) If a firm in a perfectly competitive market experiences a technological breakthrough,

 

 

 

6) If average movie ticket prices rise by about 5 percent and attendance falls by about 2 percent, other things being equal, the elasticity of demand for movie tickets is about:

 

 

7) When labor is the variable input, the average product equals the

 

 

8) The increase in output obtained by hiring an additional worker is known as

 

 

9) Which of the following is the best example of a long-run decision?

 

 

10) Other things being equal, when average productivity falls,

 

11) An economist who is studying the relationship between the money supply,interest rates, and the rate of inflation is engaged in

 

 

 

12) A basic difference between microeconomics and macroeconomics is that microeconomics

 

 

13) The distinction between supply and the quantity supplied is best made by saying that

 

 

14) After several years of slow economic growth, world demand for petroleum began to rise rapidly in the 1990s. Much of the increase 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 prices. What best describes these events?

 

15) Price elasticity of demand is the:

 

 

 

11) According to economist Colin Camerer of the California Institute of Technology, many New York taxi drivers decide 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 will

                A.           

work the same number of hours as they will on slower days

                B.           

work fewer hours than they will on slower days

                C.           

work more hours than they will on slower days

                D.           

not work any hours

 

 

12) A firm's demand for labor is derived from the

                A.           

opportunity costs associated with labor and leisure

                B.           

desires and needs of the entrepreneur

                C.           

cost of labor inputs

                D.           

demand for its output

 

 

13) Owen runs a delivery business and currently employs three drivers. He owns three vans that employees use to make deliveries, but he is considering hiring a fourth 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 day

                A.           

is $0 because Owen does not have to purchase another van

                B.           

is $5

                C.           

is $75

                D.           

cannot be calculated without knowing Owen's total fixed costs

 

 

14) Expected economic profit per unit is equal to

                A.           

expected price

                B.           

expected average total cost

                C.           

the difference between expected average price and expected average total cost

                D.           

the difference between expected total revenue and expected total cost

 

 

15) If a firm in a perfectly competitive market experiences a technological breakthrough,

                A.           

other firms would find out about it eventually

                B.           

other firms would find out about it immediately

                C.           

other firms would not find out about it

                D.           

some firms would find out about it, but others would not

 

 

16) A significant difference between monopoly and perfect competition is that

                A.           

free entry and exit is possible in a monopolized industry, but impossible in a competitive industry

                B.           

competitive firms control market supply, but monopolies do not

                C.           

the monopolist's demand curve is the industry demand curve, while the competitive firm's demand curve is perfectly elastic

                D.           

profits are driven to zero in a monopolized industry, but may be positive in a competitive industry.

 

 

17) A monopoly firm is different from a competitive firm in that

                A.           

there are many substitutes for a monopolist's product while there are no substitutes for a competitive firm's product

                B.           

a monopolist's demand curve is perfectly inelastic while a competitive firm's demand curve is perfectly elastic

                C.           

a monopolist can influence market price while a competitive firm cannot

                D.           

a competitive firm has a U-shaped average cost curve while a monopolist does not

 

 

18) The difference between a perfectly competitive firm and a monopolistically competitive firm is that a monopolistically competitive firm faces a

               

19) As long as marginal cost is below marginal revenue, a perfectly competitive firm should

               

 

20) Because a monopolistic competitor has some monopoly power, advertising to increase that monopoly power makes sense as long as the marginal

               

 

 

21) In the Flint Hills area of Kansas, proposals to build wind turbines to generate electricity have pitted environmentalist against environmentalist. Members of the Kansas Sierra Club support the turbines as a way to reduce fossil fuel usage, while local chapters of the Nature Conservancy say they will befoul the landscape. The Sierra Club argues that wind turbines

               

22) When negative externalities are present, market failure often occurs because

               

 

 

23) A merger between a textile mill and a clothing manufacturing company would be considered a

               

 

24) A merger between a baby food company and a life insurance company would be considered a

               

 

25) 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?

               

 

26) Suppose people freely choose to spend 40 percent of their income on health care, but the government decides to tax 40 percent of a person's income to provide the same level of coverage as before. What can be said about deadweight loss in each case?

               

 

27) The U.S. textile industry is relatively small because the US imports most of its clothing. A clear result of the importation of clothing is

 

 

 

28) Countries can expect to gain from international trade as long as they

 

 

29) Which of the following is an example of the law of one price?

 

 

 

30) The fact that U.S. managers' salaries are substantially greater than those of comparable managers in Japan may be related to

 

 

 

 

 

 


 genius_all_subjects
posted
Mar 9 2013 
The full tutorial has some text and attachments.
 ECO 365 Tutorial.docx (148K)




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