Question 1

The relationship between the inputs that a business uses to produce a good and the output that is produced with those inputs is called what?

Accepted Answer

A)  Production function
B)  Marginal product
C)  Fixed costs
D)  Variable inputsE) None of the above
F) C) and D)

Question 2

Bonds are IOUs or certificates of debts between lenders and borrowers. The following are characteristics of bonds except:

Accepted Answer

A)  Term
B)  Profit margin
C)  Credit risk
D)  Tax treatmentE) All of the above
F) B) and C)

Question 3

The following are conditions necessary for companies to institute price discrimination except:

Accepted Answer

A)  Ability to set one's prices
B)  Lack of competition
C)  Separate markets
D)  Demand elasticityE) A) and B)
F) A) and C)

Question 4

Because of the law of diminishing returns, marginal costs rise as _________ rises.

Accepted Answer

A)  Demand
B)  Supply
C)  Input
D)  OutputE) C) and D)
F) A) and B)

Question 5

Which of the following measures the benefit of a buyer in participating in a particular market for goods?

Accepted Answer

A)  Tax incidence
B)  Price elasticity of demand
C)  Producer surplus
D)  Consumer surplusE) A) and B)
F) All of the above

Question 6

In a competitive market, the prices of goods and services are determined by ­­­­­­­­­­_________ from consumers and _______ from producers.

Accepted Answer

A)  Demand; supply
B)  Supply; opportunity
C)  Supply; demand
D)  Demand; opportunityE) All of the above
F) A) and B)

Question 7

___________ is the amount of cost added to the business by adding one additional unit of labor.

Accepted Answer

A)  Marginal revenue product
B)  Marginal product
C)  Marginal resource cost
D)  MonopsonyE) C) and D)
F) A) and B)

Question 8

Do goods that are necessities tend to be price elastic or price inelastic?

Accepted Answer

A)  Price elastic
B)  Price inelasticC) A) and B)
D) undefined

Question 9

Suppose that Mike is bidding on a superhero figure at a comic book convention. Mike tells the seller that he is looking for a particular figure and he is willing to pay a maximum of $150 for it. The seller says that he has the exact figure that Mike is looking for and he will sell it for $150. Which of the following statements is true about this situation?

Accepted Answer

A)  The seller will not be able to sell the figure to Mike
B)  Mike gains a $150 consumer surplus
C)  The seller gets a $150 consumer surplus
D)  Mike does not get a consumer surplusE) All of the above
F) None of the above

Question 10

Which of the following would cause the demand curve for a normal good like a watch, to shift to the left?

Accepted Answer

A)  An increase in the price of the watch
B)  An increase in the price of the metal used to make the watch
C)  An increase in the consumer income
D)  A decrease in consumer incomeE) A) and D)
F) B) and C)

Question 11

If Bread A and Bread B are substitutes for each other, which of the following things would cause the price of Bread B to rise?

Accepted Answer

A)  The price of Bread A rising
B)  The price of Bread B falling
C)  A decrease in grocery taxes
D)  A new nutritional study explaining that bread is a major contributor to obesityE) All of the above
F) B) and C)

Question 12

Suppose that a unit of labor costs $20 per hour. The price of the product being made costs $4 per unit. If this is the case, how much must a worker produce in each hour to obtain a marginal revenue product of $60?

Accepted Answer

A)  15
B)  80
C)  3
D)  10E) All of the above
F) A) and D)

Question 13

What is the difference between a level of production that would be optimal for society and the actual market level?

Accepted Answer

A)  Spillover costs
B)  Coase theorem
C)  Market failure
D)  Negative internalityE) A) and D)
F) A) and B)

Question 14

Imagine that the number of people who are graduating from medical school increases by 10% each year. If this is the case, which of the following statements about doctors' salaries is true?

Accepted Answer

A)  Doctors' salaries will increase
B)  Doctors' salaries will decrease
C)  Doctors' salaries will decrease if the demand is less than the supply
D)  Doctors' salaries will decrease if the demand is greater than the supplyE) A) and B)
F) A) and C)

Question 15

Which principle maintains that the government should tax individuals in accordance with the benefits they receive-no matter what their income level?

Accepted Answer

A)  Ability-to-pay principle
B)  Benefits-received principle
C)  Regressive tax principle
D)  Progressive tax principleE) A) and B)
F) A) and C)

Question 16

Margene owns a cupcake shop. Every time she frosts another cupcake, she uses $0.32 worth of sugar. For Margene, the cost of frosting a cupcake is a component of which of the following?

Accepted Answer

A)  Marginal cost
B)  Total costs
C)  Total variable costs
D)  All of the aboveE) B) and C)
F) C) and D)

Question 17

In the quantity theory of money, what does the (P)  stand for as seen in the equation MV = PY?

Accepted Answer

A)  Period
B)  Peak
C)  Product
D)  PriceE) None of the above
F) A) and B)

Question 18

Which of the following is not one of the characteristics of a competitive market?

Accepted Answer

A)  All of the products in all of the businesses are pretty much the same
B)  Information about all products and their prices is readily available to everyone
C)  Businesses cannot freely enter or exit the market
D)  There are enough participators in the market that no one business can influence the price of the productE) All of the above
F) A) and B)

Question 19

What is the term that economists use to refer to the small changes that are made in regard to economic policy and life?

Accepted Answer

A)  Incentives
B)  Production possibilities curve
C)  Marginal analysis
D)  SpecializationE) None of the above
F) A) and B)

Question 20

What are the two types of return effects of human capital?

Accepted Answer

A)  Private; external
B)  Private; internal
C)  Public; external
D)  Public; internalE) B) and C)
F) All of the above

Exam 31: (AP) Macroeconomics: Part B

In the quantity theory of money, what does the (P) stand for as seen in the equation MV = PY?

Correct Answer
verified

Because of the law of diminishing returns, marginal costs rise as _________ rises.

Correct Answer
verified

Which of the following is not one of the characteristics of a competitive market?

Correct Answer
verified

Suppose that a unit of labor costs $20 per hour. The price of the product being made costs $4 per unit. If this is the case, how much must a worker produce in each hour to obtain a marginal revenue product of $60?

Correct Answer
verified

Which of the following would cause the demand curve for a normal good like a watch, to shift to the left?

Correct Answer
verified

Which principle maintains that the government should tax individuals in accordance with the benefits they receive-no matter what their income level?

Correct Answer
verified

The relationship between the inputs that a business uses to produce a good and the output that is produced with those inputs is called what?

Correct Answer
verified

In a competitive market, the prices of goods and services are determined by ___ from consumers and _ from producers.

Correct Answer
verified

What are the two types of return effects of human capital?

Correct Answer
verified

Which of the following measures the benefit of a buyer in participating in a particular market for goods?

Correct Answer
verified

Do goods that are necessities tend to be price elastic or price inelastic?

Correct Answer
verified

Margene owns a cupcake shop. Every time she frosts another cupcake, she uses $0.32 worth of sugar. For Margene, the cost of frosting a cupcake is a component of which of the following?

Correct Answer
verified

Imagine that the number of people who are graduating from medical school increases by 10% each year. If this is the case, which of the following statements about doctors' salaries is true?

Correct Answer
verified

Bonds are IOUs or certificates of debts between lenders and borrowers. The following are characteristics of bonds except:

Correct Answer
verified

What is the difference between a level of production that would be optimal for society and the actual market level?

Correct Answer
verified

___________ is the amount of cost added to the business by adding one additional unit of labor.

Correct Answer
verified

If Bread A and Bread B are substitutes for each other, which of the following things would cause the price of Bread B to rise?

Correct Answer
verified

Correct Answer
verified

What is the term that economists use to refer to the small changes that are made in regard to economic policy and life?

Correct Answer
verified

The following are conditions necessary for companies to institute price discrimination except:

Correct Answer
verified

Exam 31: (AP) Macroeconomics: Part B

In the quantity theory of money, what does the (P) stand for as seen in the equation MV = PY?

Correct AnswerverifiedShow Answer

Because of the law of diminishing returns, marginal costs rise as _________ rises.

Correct AnswerverifiedShow Answer

Which of the following is not one of the characteristics of a competitive market?

Correct AnswerverifiedShow Answer

Suppose that a unit of labor costs $20 per hour. The price of the product being made costs $4 per unit. If this is the case, how much must a worker produce in each hour to obtain a marginal revenue product of $60?

Correct AnswerverifiedShow Answer

Which of the following would cause the demand curve for a normal good like a watch, to shift to the left?

Correct AnswerverifiedShow Answer

Which principle maintains that the government should tax individuals in accordance with the benefits they receive-no matter what their income level?

Correct AnswerverifiedShow Answer

The relationship between the inputs that a business uses to produce a good and the output that is produced with those inputs is called what?

Correct AnswerverifiedShow Answer

In a competitive market, the prices of goods and services are determined by ­­­­­­­­­­_________ from consumers and _______ from producers.

Correct AnswerverifiedShow Answer

What are the two types of return effects of human capital?

Correct AnswerverifiedShow Answer

Which of the following measures the benefit of a buyer in participating in a particular market for goods?

Correct AnswerverifiedShow Answer

Do goods that are necessities tend to be price elastic or price inelastic?

Correct AnswerverifiedShow Answer

Margene owns a cupcake shop. Every time she frosts another cupcake, she uses $0.32 worth of sugar. For Margene, the cost of frosting a cupcake is a component of which of the following?

Correct AnswerverifiedShow Answer

Imagine that the number of people who are graduating from medical school increases by 10% each year. If this is the case, which of the following statements about doctors' salaries is true?

Correct AnswerverifiedShow Answer

Bonds are IOUs or certificates of debts between lenders and borrowers. The following are characteristics of bonds except:

Correct AnswerverifiedShow Answer

What is the difference between a level of production that would be optimal for society and the actual market level?

Correct AnswerverifiedShow Answer

___________ is the amount of cost added to the business by adding one additional unit of labor.

Correct AnswerverifiedShow Answer

If Bread A and Bread B are substitutes for each other, which of the following things would cause the price of Bread B to rise?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

What is the term that economists use to refer to the small changes that are made in regard to economic policy and life?

Correct AnswerverifiedShow Answer

The following are conditions necessary for companies to institute price discrimination except:

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

In a competitive market, the prices of goods and services are determined by ___ from consumers and _ from producers.

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified