Principles of Microeconomics Essay Example for Free

Principles of Microeconomics Essay1) If average movie tag prices rise by about 5 percent and attendance falls by about 2 percent, other things being equal, the elasticity of require for movie tickets is aboutB. 0.42) A basic variance surrounded by microeconomics and macroeconomics is that microeconomicsC. examines the choices made by individual participants in an economy, while macroeconomics considers the economys overall performance3) An economist who is studying the race surrounded by the money supply, interest rates, and the rate of inflation is engaged in B. macroeconomic research4) afterward several years of slow economic growth, world withdraw for petroleum began to rise rapidly in the 1990s. Much of the development in demand was met by special supplies from sources outside the Organization of Petroleum trade 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?C . The rise in demand shifted the demand for oil to the right. As price rose, the quantity of oil supplied rose.5) Price elasticity of demand is theD. percentage win over in quantity demanded of a good divided by the percentage change in the price of that good6) The distinction between supply and the quantity supplied is best made by saying thatB. supply is represented graphically by a curve and the quantity supplied as a point on that curve associated with a particular price7) When labor is the variable input, the average harvest-tide equals theD. quantity of output divided by the number of workers8) The increase in output obtained by hiring an additional worker is known asB. the peripheral product9) Which of the following is the best example of a semipermanent decision?A. An automobile manufacturing company is considering whether or not to invest in robotic equipment to develop a more(prenominal) comprise-effective production technique.10) Other things being equal, when avera ge productivity falls,D. average variable cost essential rise11) According to economist Colin Camerer of the California Institute of Technology, many New York appraisei drivers decide when to come to an end work by setting an income goal for themselves. If this is true, then on busy days when the effective periodic wage is higher, taxi drivers willB. work fewer hours than they will on slower days12) A libertines demand for labor is derived from theD. demand for its output13) 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 quaternary driver. If he hires a ordinal driver, he can schedule breaks and lunch hours so all three vans are in continuous 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) eval uate economic profit per unit is equal toC. the difference between pass judgment average price and expected average total cost15) If a firm in a utterly competitive commercialise experiences a technological breakthrough,B. other firms would find out about it immediately16) A significant difference between monopoly and perfect competition is thatC. the monopolists demand curve is the industry 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 long as marginal cost is below marginal revenue, a perfectly competitive firm shouldA. increase production20) Because a monopolistic competitor has some monopoly power, advertising 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 wind turbines to generate electricity put one across face environmentalist against environmentalist. Members of the Kansas Sierra Club support the turbines as a way to humble fossil provoke usage, while local 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 activity is not reflected in the market price23) A union between a textile mill and a enclothe 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 m erger25) The fact that U.S. managers salaries are substantially greater than those of parallel managers in Japan may be related toA. an increase in the demand for CEOs26) Suppose the great unwashed freely choose to spend 40 percent of their income on health care, but the government decides to tax 40 percent of a persons income to provide the alike level of coverage as before. What can be said about deadweight loss in each case?A. Taxing income results in deadweight loss, while purchase health care on ones own does not result in deadweight loss.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 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. specialize according to their comparative advantage29) Which of the following is an example of the law of one price?D. Because their countries have similar in stitutions, the price paid for a computer 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 agricultural subsidizes the cost of energy to consumers to help alleviate the burden of higher energy costs?C. It encourages the consumption of to a fault much fuel at the expense of othergoods.