Question 1

The political dilemma facing the Eastern European countries as they attempted to reform their economies in the 1990s was

Accepted Answer

A)  that they had to give up their domestic currency's convertibility for fixed exchange rates. 
B)  the falling price of bread, which was creating unrest among the masses. 
C)  reduced domestic consumption because their exports were greater than their imports. 
D)  the need to absorb the current pain associated with reforms whose benefits would be realized only much later. 
E)  that in many cases the state-owned enterprises were run much more efficiently than was possible under private ownership. 
A)  that they had to give up their domestic currency's convertibility for fixed exchange rates. 
B)  the falling price of bread, which was creating unrest among the masses. 
C)  reduced domestic consumption because their exports were greater than their imports. 
D)  the need to absorb the current pain associated with reforms whose benefits would be realized only much later. 
E)  that in many cases the state-owned enterprises were run much more efficiently than was possible under private ownership.

Question 2

The following question are based on the following table showing the supply curves of the five individual firms constituting the rutabaga market in a small community. Assume that simultaneous changes in output by all firms do NOT affect input prices.
  
-The time period during which firms can raise output by using their fixed capacity more intensively is called the

Accepted Answer

A)  market period. 
B)  short run. 
C)  long run. 
D)  infinite run. 
E)  flexible run. 
A)  market period. 
B)  short run. 
C)  long run. 
D)  infinite run. 
E)  flexible run.

Question 3

What is the profit-maximizing level of output for a perfectly competitive firm with the following cost and revenue information?

Accepted Answer

A)  20 units 
B)  21 units 
C)  22 units 
D)  23 units 
E)  24 units 
A)  20 units 
B)  21 units 
C)  22 units 
D)  23 units 
E)  24 units

Question 4

The following question are based on the following diagram of a perfectly competitive firm:
  
-What is the minimum output that the firm would produce in the short run?

Accepted Answer

A)  20 units 
B)  30 units 
C)  40 units 
D)  50 units 
E)  60 units 
A)  20 units 
B)  30 units 
C)  40 units 
D)  50 units 
E)  60 units

Question 5

Many observers feel that price controls imposed during World War II were generally more effective than those imposed in the 1970s because

Accepted Answer

A)  there was more effective government enforcement. 
B)  the price ceilings were set below market equilibrium prices. 
C)  those imposed during the war tended to be more flexible than those in the 1970s. 
D)  they had the moral support of U.S. consumers. 
E)  the price freezes of the 1970s were short-run rather than long-run controls. 
A)  there was more effective government enforcement. 
B)  the price ceilings were set below market equilibrium prices. 
C)  those imposed during the war tended to be more flexible than those in the 1970s. 
D)  they had the moral support of U.S. consumers. 
E)  the price freezes of the 1970s were short-run rather than long-run controls.

Question 6

As Eastern European economies embraced capitalistic processes in the 1990s,they

Accepted Answer

A)  dramatically reduced or eliminated price controls. 
B)  increased government ownership of factories. 
C)  immediately experienced rapidly increasing levels of output with no inflation. 
D)  began to rely even more heavily on central planning by government bureaucracies. 
E)  were able to eliminate poverty virtually overnight. 
A)  dramatically reduced or eliminated price controls. 
B)  increased government ownership of factories. 
C)  immediately experienced rapidly increasing levels of output with no inflation. 
D)  began to rely even more heavily on central planning by government bureaucracies. 
E)  were able to eliminate poverty virtually overnight.

Question 7

A market consisting of many firms producing a homogeneous product,having complete knowledge of relevant information,having no power over the product's market price,and having low barriers to entry is characteristic of

Accepted Answer

A)  perfect competition. 
B)  monopoly. 
C)  monopolistic competition. 
D)  oligopoly. 
E)  a Robinson Crusoe economy. 
A)  perfect competition. 
B)  monopoly. 
C)  monopolistic competition. 
D)  oligopoly. 
E)  a Robinson Crusoe economy.

Question 8

Which set of characteristics best identifies a monopolistically competitive market?

Accepted Answer

A)  many firms, homogeneous product, significant barriers to entry, significant nonprice competition, and considerable power over price 
B)  few firms, differentiated product, no barriers to entry, the absence of nonprice competition, and considerable advertising 
C)  one firm producing a product with no close substitutes, significant barriers to entry, and considerable power over price 
D)  many firms, differentiated product, few barriers to entry, and nonprice competition 
E)  few firms, differentiated product, significant barriers to entry, and significant amounts of nonprice competition 
A)  many firms, homogeneous product, significant barriers to entry, significant nonprice competition, and considerable power over price 
B)  few firms, differentiated product, no barriers to entry, the absence of nonprice competition, and considerable advertising 
C)  one firm producing a product with no close substitutes, significant barriers to entry, and considerable power over price 
D)  many firms, differentiated product, few barriers to entry, and nonprice competition 
E)  few firms, differentiated product, significant barriers to entry, and significant amounts of nonprice competition

Question 9

A market consisting of many firms,low barriers to entry,some control over price but considerable nonprice competition is characteristic of

Accepted Answer

A)  perfect competition. 
B)  monopoly. 
C)  monopolistic competition. 
D)  oligopoly. 
E)  dictatorship. 
A)  perfect competition. 
B)  monopoly. 
C)  monopolistic competition. 
D)  oligopoly. 
E)  dictatorship.

Question 10

The following question are based on the following cost and revenue schedule for the Presto Piano Company:
  
-To maximize profits,the firm should produce between ________ units per period.

Accepted Answer

A)  1 and 2 
B)  2 and 3 
C)  3 and 4 
D)  4 and 5 
E)  5 and 6 
A)  1 and 2 
B)  2 and 3 
C)  3 and 4 
D)  4 and 5 
E)  5 and 6

Question 11

The following question are based on the following graph:
  
-Which of the following is implied by the graph?

Accepted Answer

A)  Output rate B is more profitable than output rate A. 
B)  Any positive output rate less than C is profitable. 
C)  Output rate A maximizes profits. 
D)  After output rate B, total cost increases more slowly than total revenue. 
E)  All output rates greater than C are profitable. 
A)  Output rate B is more profitable than output rate A. 
B)  Any positive output rate less than C is profitable. 
C)  Output rate A maximizes profits. 
D)  After output rate B, total cost increases more slowly than total revenue. 
E)  All output rates greater than C are profitable.

Question 12

A perfectly competitive firm faces a demand curve that is

Accepted Answer

A)  downward sloping. 
B)  horizontal. 
C)  greater than the market price. 
D)  equal to the total costs of production for each level of output. 
E)  nonexistent. 
A)  downward sloping. 
B)  horizontal. 
C)  greater than the market price. 
D)  equal to the total costs of production for each level of output. 
E)  nonexistent.

The political dilemma facing the Eastern European countries as they attempted to reform their economies in the 1990s was

What is the profit-maximizing level of output for a perfectly competitive firm with the following cost and revenue information?

The following question are based on the following diagram of a perfectly competitive firm: -What is the minimum output that the firm would produce in the short run?

Many observers feel that price controls imposed during World War II were generally more effective than those imposed in the 1970s because

As Eastern European economies embraced capitalistic processes in the 1990s,they

A market consisting of many firms producing a homogeneous product,having complete knowledge of relevant information,having no power over the product's market price,and having low barriers to entry is characteristic of

Which set of characteristics best identifies a monopolistically competitive market?

A market consisting of many firms,low barriers to entry,some control over price but considerable nonprice competition is characteristic of

The following question are based on the following cost and revenue schedule for the Presto Piano Company: -To maximize profits,the firm should produce between ________ units per period.

The following question are based on the following graph: -Which of the following is implied by the graph?

A perfectly competitive firm faces a demand curve that is

What is Economics

Markets and Prices

The Business Firm: Organization,motivation,and Optimal Input Decisions

Getting Behind the Demand and Supply Curves

Market Demand and Price Elasticity

Monopoly and Its Regulation

Monopolistic Competition,oligopoly,and Antitrust Policy

Pollution and the Environment

The Supply and Demand for Labor

Interest,rent,and Profit

Poverty,income Inequality,and Discrimination

Economic Growth

Public Goods and the Role of the Government

National Income and Product

Business Fluctuations and Unemployment

The Determination of National Output and the Keynesian Multiplier

Fiscal Policy and National Output

Inflation

Money and the Banking System

The Federal Reserve and Monetary Policy

Supply Shocks and Inflation

Productivity,growth,and Technology Policy

Surpluses,deficits,public Debt,and the Federal Budget

Monetary Policy,interest Rates,and Economic Activity

Controversies Over Stabilization Policy

International Trade

Exchange Rates and the Balance of Payments

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Exam 6: Economic Efficiency,market Supply,and Perfect Competition

The political dilemma facing the Eastern European countries as they attempted to reform their economies in the 1990s was

What is the profit-maximizing level of output for a perfectly competitive firm with the following cost and revenue information?

The following question are based on the following diagram of a perfectly competitive firm: -What is the minimum output that the firm would produce in the short run?

Many observers feel that price controls imposed during World War II were generally more effective than those imposed in the 1970s because

As Eastern European economies embraced capitalistic processes in the 1990s,they

A market consisting of many firms producing a homogeneous product,having complete knowledge of relevant information,having no power over the product's market price,and having low barriers to entry is characteristic of

Which set of characteristics best identifies a monopolistically competitive market?

A market consisting of many firms,low barriers to entry,some control over price but considerable nonprice competition is characteristic of

The following question are based on the following cost and revenue schedule for the Presto Piano Company: -To maximize profits,the firm should produce between ________ units per period.

The following question are based on the following graph: -Which of the following is implied by the graph?

A perfectly competitive firm faces a demand curve that is

What is Economics

Markets and Prices

The Business Firm: Organization,motivation,and Optimal Input Decisions

Getting Behind the Demand and Supply Curves

Market Demand and Price Elasticity

Monopoly and Its Regulation

Monopolistic Competition,oligopoly,and Antitrust Policy

Pollution and the Environment

The Supply and Demand for Labor

Interest,rent,and Profit

Poverty,income Inequality,and Discrimination

Economic Growth

Public Goods and the Role of the Government

National Income and Product

Business Fluctuations and Unemployment

The Determination of National Output and the Keynesian Multiplier

Fiscal Policy and National Output

Inflation

Money and the Banking System

The Federal Reserve and Monetary Policy

Supply Shocks and Inflation

Productivity,growth,and Technology Policy

Surpluses,deficits,public Debt,and the Federal Budget

Monetary Policy,interest Rates,and Economic Activity

Controversies Over Stabilization Policy

International Trade

Exchange Rates and the Balance of Payments

Filters