I have to return in less than 30 minutes. It’s a quiz. Thank you
1. Opportunity Costs is: a. the money a business loses in a bad investment. b. the value of the best foregone opportunity. c. the price an individual pays for making a mistake. d. the tuition costs when you pursue a college degree. 2. Which of the following is an example of fixed costs for a business? a. hourly wages. b. cost of business license. c. fee for customer credit card charges. d. gasoline for company vehicle. 3. Which of the following is an example of a command economy? a. hunter-gatherer systems. b. decisions by individuals to satisfy their own self-interest. c. centralized decision-making by the Chinese government. d. “sin taxes” on alcohol and tobacco. 4. Capitalist market systems a. allow for substantial government ownership of key industries. b. rely on market prices and individual decision-making to yield efficient outcomes. c. do not allow a role of government in taxes and subsidies. d. is similar to socialism in that there is a guarantee that workers will have jobs. 5. Which of these conditions does NOT characterize perfect competition? a. large number of buyers and sellers act independently. b. firms produce identical products and are “price takers.” c. information is “imperfect,” allowing individuals or firms to pay more for products than their costs of production. d. individuals are motivated by self-interest, not societal welfare. 6. An accountant describes profit as _ while an economist describes it as _. a. total revenue minus total cost; total revenue minus total cost minus opportunity cost. b. total revenue minus variable cost; total revenue minus variable cost minus opportunity cost. c. total revenue minus fixed; total revenue minus fixed cost minus opportunity cost. d. total revenue minus total cost minus opportunity cost; total revenue minus total cost 7. Which of these describes the marginal product of labor? a. the total output of all workers. b. the additional output after hiring one more worker and buying her the necessary tools and equipment. c. the additional output after hiring one more worker. d. the additional output after equipping workers with upgraded tools. 8. The law of demand states that: a. with an increase in the price, the quantity demands increases b. with an increase in the price, the quantity demands decreases c. quantity demanded does not change with any increase in price d. with an increase in price, demand decreases 9. an externality exists a. if the government intervenes in the market b. if the consumer pays taxes. c. if there is a black market d. if there is a spillover cost or benefit to a third party 10. In the long-run, firms can a. enter or exit an industry b. only hire more of only one input, such as labor c. continue to produce at a loss, while hoping for the recession to end. d. none of the above. 11. The tragedy of the commons a. describes the gradual shift from individual to communal grazing rights b. can be successfully solved by allowing individuals to follow their self-interest, without a need for government intervention c. followed from excessive government interference in the maintenance of the commons d. occurred because no one person owned the commons, so no one had the incentive to take care of it. 12. Which of the following is an example of a change in the quantity demanded? a. An increase in salary leads to increased spending on clothing b. A sale on shoes leads to higher purchases of shoes. c. A rise in the price of peanut butter leads to higher demand for cheese sandwiches d. an outbreak of e-coli in chicken leads to higher demand for beef. 13. Which situation describes the increasing returns stage of the production function? a.Hiring one more tailor results in three more suits produced per hour. b. Hiring one more baker results in the same output because there is now less than one oven available per baker. c.Buying one more office computer causes there to be more computers than workers. d.Extending the workday results in more tired and less productive workers. 14. Monoplistic competition describes a. A market structure with a larg number of relatively small competitors. b. Each firm has a large amount of control over supply and prices. c. A small number of sellers coordinate products and prices. d. A single firm dominates supply and determines prices. 15. An oligopoly is characterized by a. A small number of buyers who collectively set a purchase price. b.A large number of relatively small firms who collude on supply and price. c.A small number of relatively large firms, each with substantial control of the market. d.A single large firm that dominates the market and determines the market price. 16. Markets are more efficient when information is perfect; an example is: a. insider information on the release of a new block-buster drug. b. CARFAX reports that reveal the accident and repair history of a used car. c. a fortune-tellers prediction of future interest rate movements. d. a readily available archive of historical weather reports. 17. Which is an example of the subsitution effect on demand? a. the price of bread rises, so you buy less bread. b. The price of bread rises, so you buy more bread. c. the price of bread rises, so you buy less bread and more dinner rolls. d. the price of bread rises, but you buy the same amount of bread. 18. Which of these factors does NOT affect the supply of shoes? a. a change in the price of shoes. b.A change in the cost of leather. c. A government tax or subsidy on shoe production. d. Lower costs of shoe-making equipment. 19. If the supply of a product is inelastic, then Question 19 options: a 25 percent change in price will lead to more than 25 percent change in quantity supplied. a 25 percent change in price will lead to a 100 percent change in quantity supplied a 25 percent change in price will lead to less than 25 percent change in quantity supplied a 25 percent change in price will lead to a 25 percent change in income. 20. The cost of going to college is a major expense for many of us. What is often the largest opprtunity cost? tuition at a state university the foregone earnings (or leisure time) of the student textbooks transportation to and from class
