C13V : Microeconomics
1-Which of the following is NOT demonstrated by a production possibility curve?
Necessity for choice due to scarcity
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:
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.
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