ECONS 312 MIDTERM SUMMER 2015

ECONS 312 MIDTERM SUMMER 2015

Question

Question 1.

Question :

(TCO 1) As a consequence of
the condition of scarcity

Question 2.

Question :

(TCO 1) The opportunity cost
of constructing a new public highway is the

Question 3.

Question :

(TCO 1) Which situation would
most likely cause a nation’s production possibilities curve to shift
inward?

Question 4.

Question :

(TCO 1) Which expression is
another way of saying “marginal cost”?

Question 5.

Question :

(TCO 1) The individual who
brings together economic resources and assumes the risk of business
ventures in a capitalist economy is called the

Question 6.

Question :

(TCO 1) The Soviet Union
economy of the 1980s would best be classified as

Question 7.

Question :

(TCO 1) The simple
circular-flow model shows that workers, entrepreneurs, and the owners of
land and capital offer their services through

Question 8.

Question :

(TCO 1) Laissez-faire
capitalism is characterized by

Question 9.

Question :

(TCO 1) Consumer sovereignty
and “dollar votes” guide the market system in dealing with
which fundamental question?

Question 10.

Question :

(TCO 1) A major problem with
state ownership of resources is that it does not

Question 11.

Question :

(TCO 2) An increase in product
price will cause:

Question 12.

Question :

(TCO 2) At the point where the
demand and supply curves intersect

Question 13.

Question :

(TCO 2) Black markets are
associated with

Question 14.

Question :

(TCO 2) An increase in demand
for oil along with a simultaneous increase in supply of oil will

Question 15.

Question :

(TCO 2) For most products,
purchases tend to fall with decreases in buyers’ incomes. Such
products are known as

Question 16.

Question :

(TCO 2) When the price of a
product is increased 10 percent, the quantity demanded decreases 15
percent. In this range of prices, demand for this product is

Question 17.

Question :

(TCO 2) Demand is said to be
inelastic when

Question 18.

Question :

(TCO 2) The demand for
Cheerios cereal is more price-elastic than the demand for cereals as a
whole. This is best explained by the fact that

Question 19.

Question :

(TCO 2) To economists the main
differences between “the short run” and “the long
run” are that

Question 20.

Question :

(TCO 2) When universities
announce a large tuition increase and follow it with an announcement that
more financial aid will be available, they are assuming that students who
pay full tuition

Question 21.

Question :

(TCO 3) Cash expenditures a
firm makes to pay for resources are called

Question 22.

Question :

(TCO 3) Suppose that a firm
produces 200,000 units a year and sells them all for $10 each. The
explicit costs of production are $1,500,000 and the implicit costs of
production are $300,000. The firm earns an accounting profit of

Question 23.

Question :

(TCO 3) The long run is a
period of time, or a time frame, in which

Question 24.

Question :

(TCO 3) Fixed costs are those
costs which are

Question 25.

Question :

(TCO 3) Marginal cost can be
defined as the

Question 26.

Question :

(TCO 3) A fast-food company
spends millions of dollars to develop and promote a new hamburger on its
menu only to find that consumers won’t buy it because they don’t like the
taste. From an economic perspective, the company should

Question 1.

Question :

(TCO 3) Which market model
assumes the least number of firms in an industry?

Question 2.

Question :

(TCO 3) Under which market
model are the conditions of entry into the market easiest?

Question 3.

Question :

(TCO 3) The fast-food
restaurants would be an example of which market model?

Question 4.

Question :

(TCO 3) In pure competition,
the demand for the product of a single firm is perfectly

Question 5.

Question :

(TCO 3) T-Shirt Enterprises is
selling in a purely competitive market. It is producing 3,000
units, selling them for $2 each. At this level of output, the average
total cost is $2.50 and the average variable cost is $2.20. Based
on these data, the firm should

Question 6.

Question :

(TCO 3) A firm should increase
the quantity of output as long as its

Question 7.

Question :

(TCO 3) In pure competition,
price is determined where the industry

Question 8.

Question :

(TCO 3) One feature of pure
monopoly is that the monopolist is

Question 9.

Question :

(TCO 3) Barriers to entry

Question 10.

Question :

(TCO 3) The nondiscriminating
pure monopolist must decrease price on all units of a product sold in
order to sell more units. This explains why

Question 11.

Question :

(TCO 3) Which case below best
represents a case of price discrimination?

Question 12.

Question :

(TCO 3) Monopolistic
competition is characterized by firms

Question 13.

Question :

(TCO 3) Which set of
characteristics below best describes the basic features of monopolistic
competition?

Question 14.

Question :

(TCO 3) In an oligopolistic
market there are

Question 15.

Question :

(TCO 3) You are told that the
four-firm concentration ratio in an industry is 20. Based on this
information you can conclude that

Question 16.

Question :

(TCO 3) A cartel is

Question 17.

Question :

(TCO 1) Money is not an
economic resource because

Question 18.

Question :

(TCO 1) Refer to the diagram
which refers to the Circular Flow Model in Chapter 2. Arrows (1)
and (3) are associated with

Question 19.

Question :

(TCO 2) Refer to the diagram.
A decrease in demand is depicted by a

Question 20.

Question :

(TCO 2) Refer to the
information and assume the stadium capacity is 5,000. If the
Mudhens’ management wanted a full house for the game, it would

Price per Ticket

Quantity Demanded

$13

1,000

11

2,000

9

3,000

7

4,000

5

5,000

3

6,000

Question 21.

Question :

(TCO 2) Which type of goods is
most adversely affected by recessions?

Question 22.

Question :

(TCO 3) In the diagram Curves
1, 2, and 3 represent

Question 23.

Question :

(TCO 1) Refer to the
diagram. Points A, B, C, D, and E show

Question 24.

Question :

(TCO 3) Any activity designed
to transfer income or wealth to a particular individual or firm at
society’s expense is called

Question 25.

Question :

(TCO 3) a.) Do you agree or
disagree with the statement that: “A monopolist always charges the
highest possible price.“? Explain. b.) Why can’t an
individual firm raise its price by reducing output or lower its price to
increase sales volume in a purely competitive market?

Question 26.

Question :

(TCO 2) What effect should
each of the following have upon the demand for portable music players in
a competitive market? Explain your reasoning in each case.

(a) the development of
improved, low-priced devices that compete with music players

(b) an increase in
population and incomes

(c) a substantial
increase in the number and quality of music for players

(d) consumer expectations
of substantial price increases in music players

ECONS 312 MIDTERM SUMMER 2015


Attachments
ECONS_MIDTERM_EXAMS_SUMER.docx (261.45 KB)

Preview: restaurants xxxxx be xx example of xxxxx market model? Student xxxxxxxxxxxxxxxxxxx competition xxxxxx xxxxxxxxxxx  Pure xxxxxxxx  Oligopoly  Instructor xxxxxxxxxxxxxxxxxxx 8 Points Received:3 xx 3 xxxxxxxxxxxxxxxxxxxxxx xxxxxxxx :(TCO xx In pure xxxxxxxxxxxx the demand xxx the xxxxxxx xx a xxxxxx firm is xxxxxxxxxxxxxxxxxx Answer:elastic because xxx firm xxxxxxxx x unique xxxxxxx  inelastic because xxx firm produces x unique xxxxxxx xxxxxxxxx because xxxx other firms xxxxxxx the same xxxxxxx  inelastic xxxxxxx xxxx other xxxxx produce the xxxx product  Instructor xxxxxxxxxxxxxxxxxxx 8 Points xxxxxxxxxx xx 3 xxxxxxxxxxxxxxxxxxxxxx Question :(TCO xx T-Shirt Enterprises xx selling xx x purely xxxxxxxxxxx market   xx is producing xxxxx units, xxxxxxx xxxx for xx each   xx this level xx output, xxx xxxxxxx total xxxx is $2 xx and the xxxxxxx variable xxxx xx $2 xx   Based xx these data, xxx firm xxxxxxxxxxxxxxx xxxxxxxxxxx down xx the short xxx  decrease output xx 2,500 xxxxx xxxxxxxxx to xxxxxxx 3,000 units xxxxxxxxxx output to xxxxx units xxxxxxxxxxxx xxxxxxxxxxxxxxxxxxx 8 Points xxxxxxxxxx of 3 xxxxxxxxxxxxxxxxxxxxxx Question :(TCO xx A xxxx xxxxxx increase xxx quantity of xxxxxx as long xx its Student xxxxxxxxxxxxxxx xxxxxxx is xxxxxxx than its xxxxxxxx cost  marginal xxxx is xxxxxxx xxxx its xxxxxxxx revenue  average xxxxxxx is greater xxxx its xxxxxxx xxxxx cost xxxxxxxxx revenue is xxxxxxx than its xxxxxxx variable xxxx xxxxxxxxxxxx Explanation:Chapter xxxxxxxxx Received:3 of x  Comments:Question 7 Question xxxxx 3) xx xxxx competition, xxxxx is determined xxxxx the industry Student xxxxxxxxxxxxx and xxxxxx xxxxxx intersect xxxxxxx cost is xxxxxxx than total xxxxxxx  demand xxxxxxxxxx xxx individual xxxxxx marginal cost xxxxx  average total xxxx equals xxxxx xxxxxxxx costs xxxxxxxxxxxx Explanation:Chapter 8 Points xxxxxxxxxx of 3 xxxxxxxxxxxxxxxxxxxxxx Question xxxxx xx One xxxxxxx of pure xxxxxxxx is that xxx monopolist xxxxxxxxxxx xxxxxxxxxxxxxxxxxx of xxxxxxxx with close xxxxxxxxxxx  one of xxxxxxx producers xx x product xxxxxxxxxx taker  a price xxxxx  Instructor Explanation:Chapter xxxxxxxxxx Received:3 xx x  Comments:Question 9 xxxxxxxx :(TCO 3) xxxxxxxx to entry Student xxxxxxxxxxxxxx result xx xxxx competition xxxxx result from xxxxxxxxxx regulation  exist xx economic xxxxxx xxx not xx the real xxxxx  are typically xxx result xx xxxxxxxxxx on xxx part of x firm  Instructor xxxxxxxxxxxxxxxxxxx 10 Points xxxxxxxxxx xx 3 xxxxxxxxxxxxxxxxxxxxxxx Question :(TCO xx The nondiscriminating xxxx monopolist xxxx xxxxxxxx price xx all units xx a product xxxx in xxxxx xx sell xxxx units   xxxx explains why Student xxxxxxxxxxxx are xxxxxxxx xx entry xx pure monopoly xxxxxxxxxxxxx has a xxxxxxxxx elastic xxxxxx xxxxx  marginal xxxxxxx is less xxxx average revenue xxxxxxx revenues xxx xxxxxxx than xxxxx costs at xxx profit-maximizing level xx output xxxxxxxxxxxx xxxxxxxxxxxxxxxxxxx 10 Points xxxxxxxxxx of 3 xxxxxxxxxxxxxxxxxxxxxxx Question :(TCO xx Which xxxx xxxxx best xxxxxxxxxx a case xx price discrimination? Student xxxxxxxxx insurance xxxxxxx xxxxxx discounts xx safe drivers xxx major airline xxxxx tickets xx xxxxxx citizens xx lower prices xxxx to other xxxxxxxxxx  A xxxxxxxxxxxx xxxxxxxx team xxxx two players xxxx identical batting xxxxxxxx different xxxxxxxx xxx utility xxxxxxx charges less xxx electricity used xxxxxx “off-peak” xxxxxx xxxx it xxxx not have xx operate its xxxxxxxxxxxxxx generating xxxxxx xxxxxxxxxxxx Explanation:Chapter xxxxxxxxxx Received:3 of x  Comments:Question 12 Question xxxxx 3) xxxxxxxxxxxx xxxxxxxxxxx is xxxxxxxxxxxxx by firms Student xxxxxxxxxxxxxxxx differentiated products xxxxxxxx economic xxxxxxx xx the xxxx run  producing xx optimal productive xxxxxxxxxx  producing xxxxx xxxxx equals xxxxxxxx cost  Instructor xxxxxxxxxxxxxxxxxxx 11 Points Received:3 xx 3 xxxxxxxxxxxxxxxxxxxxxxx xxxxxxxx :(TCO xx Which set xx characteristics below xxxx describes xxx xxxxx features xx monopolistic competition? Student xxxxxxxxxxx entry, many xxxxxx and xxxxxxxxxxxx xxxxxxxx  Barriers xx entry, few xxxxxx and differentiated xxxxxxxx  Easy xxxxxx xxxx firms, xxx differentiated products xxxxxx entry, few xxxxxx and xxxxxxxxxxxx xxxxxxxx  Instructor xxxxxxxxxxxxxxxxxxx 11 Points Received:3 xx 3  Comments:Question 14 xxxxxxxx :(TCO xx xx an xxxxxxxxxxxxx market there xxxxxxxxxxxx Answer:many buyers xxxxx buyers xxxxx xxxxxxx  many xxxxxxx  Instructor Explanation:Chapter xxxxxxxxxx Received:3 of x  Comments:Question 15 xxxxxxxx xxxxx 3) xxx are told xxxx the four-firm xxxxxxxxxxxxx ratio xx xx industry xx 20   xxxxx on this xxxxxxxxxxx you xxx xxxxxxxx that Student xxxxxxxxxxx of the xxx four firms xxx 20 xxxxxxx xx industry xxxxx  the four xxxxxxx firms account xxx a xxxxxxxx xx percent xx the industry xxxxx  the four xxxxxxx firms xxxxxxx xxx 20 xxxxxxx of industry xxxxx  each of xxx four xxxxxxx xxxxx accounts xxx five percent xx industry sales xxxxxxxxxxxx Explanation:Chapter xxxxxxxxxx xxxxxxxxxx of x  Comments:Question 16 Question xxxxx 3) A xxxxxx is Student xxxxxxxxxxxxxx xx covert xxxxxxxxx  legal in xxx United States xxxxxxxx successful xx xxxxxxx profits xxxxxxxxxxx agreement among xxxxx to collude xxxxxxxxxxxx Explanation:Chapter xxxxxxxxxx xxxxxxxxxx of x  Comments:Question 17 Question xxxxx 1) Money xx not xx xxxxxxxx resource xxxxxxxxxxxxxxxx Answer:money, as xxxxx does not xxxxxxx anything xxxxxx xxxxx balances xx not earn xxxxxxxx income  it xx not xxxxxx xxxxxxx is xxx a free