Question 1

Regarding employment discrimination, which of the following is true?

Accepted Answer

A)  The earnings differential between men and women who never married is considerably smaller than the differential between married men and married women. 
B)  After adjusting for education, age, language, and location, the earnings of women are almost identical with the earnings of men. 
C)  Between 1980 and 2000, the female/male annual earnings ratio of full-time workers was virtually unchanged. 
D)  The hourly earnings of women were approximately 60 percent of their male counterparts in recent years. 
A)  The earnings differential between men and women who never married is considerably smaller than the differential between married men and married women. 
B)  After adjusting for education, age, language, and location, the earnings of women are almost identical with the earnings of men. 
C)  Between 1980 and 2000, the female/male annual earnings ratio of full-time workers was virtually unchanged. 
D)  The hourly earnings of women were approximately 60 percent of their male counterparts in recent years.

Question 2

In the short run, the marginal cost curve crosses the average total cost curve at

Accepted Answer

A)  a point just below the average fixed cost curve. 
B)  the minimum point on the average total cost curve. 
C)  the maximum point of the average variable cost curve. 
D)  all of the above points. 
A)  a point just below the average fixed cost curve. 
B)  the minimum point on the average total cost curve. 
C)  the maximum point of the average variable cost curve. 
D)  all of the above points.

Question 3

The long-run average total cost (LRATC) curve

Accepted Answer

A)  indicates the per-unit cost of producing various rates of output with a specific size of plant but variable levels of labor and technology. 
B)  indicates the minimum per-unit cost that can be achieved at various output rates when the firm is free to choose among plant sizes. 
C)  will be falling when diseconomies of scale are present and rising when economies of scale are present. 
D)  is a U-shaped curve. 
E)  is both a and d above. 
A)  indicates the per-unit cost of producing various rates of output with a specific size of plant but variable levels of labor and technology. 
B)  indicates the minimum per-unit cost that can be achieved at various output rates when the firm is free to choose among plant sizes. 
C)  will be falling when diseconomies of scale are present and rising when economies of scale are present. 
D)  is a U-shaped curve. 
E)  is both a and d above.

Question 4

The opportunity costs associated with the use of resources owned by a firm are usually

Accepted Answer

A)  externalities. 
B)  implicit costs. 
C)  explicit costs. 
D)  sunk costs. 
A)  externalities. 
B)  implicit costs. 
C)  explicit costs. 
D)  sunk costs.

Question 5

Use the figure to answer the following question(s).
Figure 8-4  
-According to Figure 8-4, at what output would a properly constructed marginal cost curve cross the ATC curve?

Accepted Answer

A)  2 
B)  3 
C)  4 
D)  5 
A)  2 
B)  3 
C)  4 
D)  5

Question 6

Which of the following is the best example of a fixed cost for a business?

Accepted Answer

A)  the insurance payment for the protection of a building owned by the firm 
B)  shipping charges for the delivery of products 
C)  managerial salaries paid 
D)  the total of medical insurance premiums on the firm's employees 
A)  the insurance payment for the protection of a building owned by the firm 
B)  shipping charges for the delivery of products 
C)  managerial salaries paid 
D)  the total of medical insurance premiums on the firm's employees

Question 7

The short-run average total cost (ATC) curve of a firm will tend to be U-shaped because

Accepted Answer

A)  larger firms always have lower per-unit costs than smaller firms. 
B)  at small output rates, average fixed costs (AF
C)  will be high, while at large output rates, marginal cost (M
C)  will be high. 
C)  diminishing returns will be present when output is small, while high AFC will push average total cost to high levels when output is large. 
D)  diseconomies of scale will be present at both small and large output rates. 
A)  larger firms always have lower per-unit costs than smaller firms. 
B)  at small output rates, average fixed costs (AF
C)  will be high, while at large output rates, marginal cost (M
C)  will be high. 
C)  diminishing returns will be present when output is small, while high AFC will push average total cost to high levels when output is large. 
D)  diseconomies of scale will be present at both small and large output rates.

Question 8

Use the figure to answer the following question(s).
Figure 8-2  
-Using Figure 8-2, calculate the firm's total cost of producing 20 units of output.

Accepted Answer

A)  $8 
B)  $120 
C)  $180 
D)  $240 
A)  $8 
B)  $120 
C)  $180 
D)  $240

Question 9

A large aircraft manufacturer, like Boeing, may have a cost advantage over a new smaller manufacturer because

Accepted Answer

A)  of diseconomies of scale. 
B)  of economies of scale. 
C)  of diminishing returns to a fixed factor of production. 
D)  the principal agent problem is generally less severe for larger firms. 
A)  of diseconomies of scale. 
B)  of economies of scale. 
C)  of diminishing returns to a fixed factor of production. 
D)  the principal agent problem is generally less severe for larger firms.

Question 10

For a firm that wants to remain in business, which of the following costs could be avoided if it halted current production?

Accepted Answer

A)  fixed costs 
B)  variable costs 
C)  sunk costs 
D)  implicit costs 
A)  fixed costs 
B)  variable costs 
C)  sunk costs 
D)  implicit costs

Question 11

The share of college degrees earned by women was ____ in recent years compared to ____ in 1961.

Accepted Answer

A)  less than 40 percent; 50 percent 
B)  less than 50 percent; 60 percent 
C)  greater than 55 percent; 39 percent 
D)  greater than 65 percent; 48 percent 
A)  less than 40 percent; 50 percent 
B)  less than 50 percent; 60 percent 
C)  greater than 55 percent; 39 percent 
D)  greater than 65 percent; 48 percent

Question 12

The short-run average total cost (ATC) curve of a firm will tend to be U-shaped because

Accepted Answer

A)  larger firms always have lower per-unit costs than smaller firms. 
B)  at low levels of output, AFC will be high, while at high levels of output, MC will be high as the result of diminishing returns. 
C)  diminishing returns will be present when output is small, and high AFC will push per-unit cost to high levels when output is large. 
D)  diseconomies of scale will be present at both small and large output rates. 
A)  larger firms always have lower per-unit costs than smaller firms. 
B)  at low levels of output, AFC will be high, while at high levels of output, MC will be high as the result of diminishing returns. 
C)  diminishing returns will be present when output is small, and high AFC will push per-unit cost to high levels when output is large. 
D)  diseconomies of scale will be present at both small and large output rates.

Question 13

The rate of return that owners of capital must receive in order to induce them to continue supplying the capital is often referred to as

Accepted Answer

A)  accounting profit. 
B)  the normal or market rate of return. 
C)  economic profit. 
D)  the accounting rate of return. 
A)  accounting profit. 
B)  the normal or market rate of return. 
C)  economic profit. 
D)  the accounting rate of return.

Question 14

If average fixed costs equal $60 and average total costs equal $120 when output is 100, the total variable cost must be

Accepted Answer

A)  $40. 
B)  $60. 
C)  $6,000. 
D)  $8,000. 
A)  $40. 
B)  $60. 
C)  $6,000. 
D)  $8,000.

Question 15

In order for the law of diminishing returns to be present, we must have

Accepted Answer

A)  at least one factor of production to be fixed. 
B)  output decreasing as more laborers are hired. 
C)  the price of labor increasing as more workers are hired. 
D)  simultaneous changes in labor and capital. 
E)  double the output when labor input is doubled. 
A)  at least one factor of production to be fixed. 
B)  output decreasing as more laborers are hired. 
C)  the price of labor increasing as more workers are hired. 
D)  simultaneous changes in labor and capital. 
E)  double the output when labor input is doubled.

Question 16

Which of the following is true about employment discrimination?

Accepted Answer

A)  Employers who discriminate against women will have lower costs than rival firms that hire employees strictly on the basis of merit (productivity). 
B)  If employers can hire equally productive female employees at a lower wage than males, the profit motive gives them a strong incentive to do so. 
C)  The female/male earnings ratio is higher for persons who are married than for those who remain single. 
D)  Both a and c are true. 
A)  Employers who discriminate against women will have lower costs than rival firms that hire employees strictly on the basis of merit (productivity). 
B)  If employers can hire equally productive female employees at a lower wage than males, the profit motive gives them a strong incentive to do so. 
C)  The female/male earnings ratio is higher for persons who are married than for those who remain single. 
D)  Both a and c are true.

Question 17

With respect to the average cost curves, the marginal cost curve

Accepted Answer

A)  intersects average total cost, average fixed cost, and average variable cost at their minimum points. 
B)  intersects average total cost, average fixed cost, and average variable cost at their maximum points. 
C)  intersects both average total cost and average variable cost at their minimum points. 
D)  intersects average total cost where it is increasing and average variable cost where it is decreasing. 
E)  intersects only average total cost at its minimum point. 
A)  intersects average total cost, average fixed cost, and average variable cost at their minimum points. 
B)  intersects average total cost, average fixed cost, and average variable cost at their maximum points. 
C)  intersects both average total cost and average variable cost at their minimum points. 
D)  intersects average total cost where it is increasing and average variable cost where it is decreasing. 
E)  intersects only average total cost at its minimum point.

Question 18

If fixed costs are $200,000 and variable costs are $30 per unit over the relevant range of output, when 10,000 units are produced, the average total cost will be

Accepted Answer

A)  $20. 
B)  $30. 
C)  $50. 
D)  $70. 
A)  $20. 
B)  $30. 
C)  $50. 
D)  $70.

Question 19

The relationship between average and marginal variables can be stated as follows: if the marginal is greater than the average,

Accepted Answer

A)  the average is increasing. 
B)  the average is decreasing. 
C)  the marginal is increasing. 
D)  the marginal is decreasing. 
E)  the total is decreasing. 
A)  the average is increasing. 
B)  the average is decreasing. 
C)  the marginal is increasing. 
D)  the marginal is decreasing. 
E)  the total is decreasing.

Question 20

Since 1980, the female/male annual earnings ratio of full-time workers has been ____, while the labor force participation rate of women has been ____ during this same period.

Accepted Answer

A)  rising; declining 
B)  rising; increasing 
C)  falling; increasing 
D)  falling; declining 
A)  rising; declining 
B)  rising; increasing 
C)  falling; increasing 
D)  falling; declining

Regarding employment discrimination, which of the following is true?

In the short run, the marginal cost curve crosses the average total cost curve at

The long-run average total cost (LRATC) curve

The opportunity costs associated with the use of resources owned by a firm are usually

Use the figure to answer the following question(s). Figure 8-4 -According to Figure 8-4, at what output would a properly constructed marginal cost curve cross the ATC curve?

Which of the following is the best example of a fixed cost for a business?

The short-run average total cost (ATC) curve of a firm will tend to be U-shaped because

Use the figure to answer the following question(s). Figure 8-2 -Using Figure 8-2, calculate the firm's total cost of producing 20 units of output.

A large aircraft manufacturer, like Boeing, may have a cost advantage over a new smaller manufacturer because

For a firm that wants to remain in business, which of the following costs could be avoided if it halted current production?

The share of college degrees earned by women was in recent years compared to in 1961.

The short-run average total cost (ATC) curve of a firm will tend to be U-shaped because

The rate of return that owners of capital must receive in order to induce them to continue supplying the capital is often referred to as

If average fixed costs equal $60 and average total costs equal $120 when output is 100, the total variable cost must be

In order for the law of diminishing returns to be present, we must have

Which of the following is true about employment discrimination?

With respect to the average cost curves, the marginal cost curve

If fixed costs are $200,000 and variable costs are $30 per unit over the relevant range of output, when 10,000 units are produced, the average total cost will be

The relationship between average and marginal variables can be stated as follows: if the marginal is greater than the average,

Since 1980, the female/male annual earnings ratio of full-time workers has been , while the labor force participation rate of women has been during this same period.

The Economic Approach

Some Tools of the Economist

Demand, Supply, and the Market Process

Supply and Demand: Applications and Extensions

Difficult Cases for the Market, and the Role of Government

The Economics of Political Action

Consumer Choice and Elasticity

Price Takers and the Competitive Process

Price-Searcher Markets With Low Entry Barriers

Price-Searcher Markets With High Entry Barriers

The Supply of and Demand for Productive Resources

Earnings, Productivity, and the Job Market

Investment, the Capital Market, and the Wealth of Nations

Income Inequality and Poverty

Gaining From International Trade

Filters

Exam 8: Costs and the Supply of Goods

Regarding employment discrimination, which of the following is true?

In the short run, the marginal cost curve crosses the average total cost curve at

The long-run average total cost (LRATC) curve

The opportunity costs associated with the use of resources owned by a firm are usually

Use the figure to answer the following question(s). Figure 8-4 -According to Figure 8-4, at what output would a properly constructed marginal cost curve cross the ATC curve?

Which of the following is the best example of a fixed cost for a business?

The short-run average total cost (ATC) curve of a firm will tend to be U-shaped because

Use the figure to answer the following question(s). Figure 8-2 -Using Figure 8-2, calculate the firm's total cost of producing 20 units of output.

A large aircraft manufacturer, like Boeing, may have a cost advantage over a new smaller manufacturer because

For a firm that wants to remain in business, which of the following costs could be avoided if it halted current production?

The share of college degrees earned by women was ____ in recent years compared to ____ in 1961.

The short-run average total cost (ATC) curve of a firm will tend to be U-shaped because

The rate of return that owners of capital must receive in order to induce them to continue supplying the capital is often referred to as

If average fixed costs equal $60 and average total costs equal $120 when output is 100, the total variable cost must be

In order for the law of diminishing returns to be present, we must have

Which of the following is true about employment discrimination?

With respect to the average cost curves, the marginal cost curve

If fixed costs are $200,000 and variable costs are $30 per unit over the relevant range of output, when 10,000 units are produced, the average total cost will be

The relationship between average and marginal variables can be stated as follows: if the marginal is greater than the average,

Since 1980, the female/male annual earnings ratio of full-time workers has been ____, while the labor force participation rate of women has been ____ during this same period.

The Economic Approach

Some Tools of the Economist

Demand, Supply, and the Market Process

Supply and Demand: Applications and Extensions

Difficult Cases for the Market, and the Role of Government

The Economics of Political Action

Consumer Choice and Elasticity

Price Takers and the Competitive Process

Price-Searcher Markets With Low Entry Barriers

Price-Searcher Markets With High Entry Barriers

The Supply of and Demand for Productive Resources

Earnings, Productivity, and the Job Market

Investment, the Capital Market, and the Wealth of Nations

Income Inequality and Poverty

Gaining From International Trade

Filters

The share of college degrees earned by women was in recent years compared to in 1961.

Since 1980, the female/male annual earnings ratio of full-time workers has been , while the labor force participation rate of women has been during this same period.