HW-259 C13V-Microeconomics

  

C13V : Microeconomics
1-Which of the following is NOT demonstrated by a production possibility curve?
Scarcity
 

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Opportunity cost
 

Necessity for choice due to scarcity
 

Price
 

2-The market price __________ the equilibrium price.
can be higher than, but never lower than
 

can be lower than, but never higher than
 

3-The poverty line is set:
by the U.S. Bureau of the Census (based on family food budgets).
 

at the same income level right now as it’s been since 1982.
 

so high that over 30% of all Americans are officially poor.
 

by the United Nations for every country in the world.
 

4-If a monopolist has a straight-line demand curve, then its marginal revenue curve will:
be the same as the demand curve.
 

fall twice as quickly as the demand curve.
 

lie below the demand curve at all points.
 

cross the demand curve.
 

5-As long as total utility is increasing, we know that marginal utility is:
positive.
 

decreasing.
 

increasing.
 

negative.
 

6-A key reason that our gasoline prices elevated rapidly from 2006 to 2008 was:
tight global supplies and high prices.
 

the war in the Middle East.
 

greed by oil exporting countries.
 

inflation.
 

7-In order for real wages to grow:
productivity must grow.
 

productivity must fall.
 

money wages must grow.
 

money wages must fall.
 

8-The substitution effect and the output effect work in the:
same direction some of the time.
 

same direction all of the time.
 

opposite direction some of the time.
 

opposite direction all of the time.
 

9-The law of demand holds for:
individuals, but not for markets.
 

markets, but not for individuals.
 

both individuals and for markets.
 

neither individuals nor for markets.
 

10-A firm will maximize its profits or minimize its loss at the output where:
the difference between price and marginal cost is at its maximum.
 

total cost equals total revenue.
 

marginal cost equals marginal revenue.
 

total revenue equals variable cost

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