ECO 351 FINAL EXAM MICRO ECONMICS 2021
QUUESTIONS WITH ANSWERS
Ceteris paribus, a change in the price of a good always results in a
change in: income.
tastes.
quantity demanded.
both income and
tastes. the price of
other goods.
A "kinked" demand curve reflects a tendency on the part of an
oligopolist to: follow price increases but not price
reductions.
following price reductions but
not price increases.
be unconcerned with rivals'
behavior. None of these.
A bus is mostly filled with passengers and ready to travel from Los Angeles to San
Francisco. At the last minute, a person comes running up to the bus and takes a seat.
The change in the bus company's total cost as a result of transporting one more
passenger on this trip is called:
marginal cost.
average total
cost. variable
cost.
fixed cost.
opportunity cost.
A cartel is a formal agreement among firms to control price and output of a product.
True
False
A cartel:
is a group of firms formally agreeing to control the price and the output of a
,ECO 351 FINAL EXAM MICRO ECONMICS 2021
QUUESTIONS WITH ANSWERS
product.
has as its primary goal to reap monopoly profits by replacing competition with
cooperation. is illegal in the United States, but not in other nations.
all of these
,ECO 351 FINAL EXAM MICRO ECONMICS 2021
QUUESTIONS WITH ANSWERS
A chain saw is an example of which of the following factors of production?
Land.
Labor.
Capital.
None of these.
A change in supply cannot be caused by a change in:
resource
prices.
technology.
prices of other goods.
the price of the good
itself. the number of
suppliers.
A common characteristic of oligopolies is:
interdependence in pricing
decisions. independent pricing
decisions.
low industry concentration.
few or no plant-level economies of scale.
A competitive car wash currently hires 4 workers, who together can wash 80 cars per
day. The market price of car washes is $5 per wash, and the price of workers is $60 per
day. The car wash should hire a fifth worker if it would increase total production to at
least:
92 cars per
day. 100 cars
per day. 104
cars per day.
, ECO 351 FINAL EXAM MICRO ECONMICS 2021
QUUESTIONS WITH ANSWERS
110 cars per day.
A competitive firm maximizes its profits (or minimizes is losses) by producing the quantity
where the market price equals the firm's:
marginal cost.
QUUESTIONS WITH ANSWERS
Ceteris paribus, a change in the price of a good always results in a
change in: income.
tastes.
quantity demanded.
both income and
tastes. the price of
other goods.
A "kinked" demand curve reflects a tendency on the part of an
oligopolist to: follow price increases but not price
reductions.
following price reductions but
not price increases.
be unconcerned with rivals'
behavior. None of these.
A bus is mostly filled with passengers and ready to travel from Los Angeles to San
Francisco. At the last minute, a person comes running up to the bus and takes a seat.
The change in the bus company's total cost as a result of transporting one more
passenger on this trip is called:
marginal cost.
average total
cost. variable
cost.
fixed cost.
opportunity cost.
A cartel is a formal agreement among firms to control price and output of a product.
True
False
A cartel:
is a group of firms formally agreeing to control the price and the output of a
,ECO 351 FINAL EXAM MICRO ECONMICS 2021
QUUESTIONS WITH ANSWERS
product.
has as its primary goal to reap monopoly profits by replacing competition with
cooperation. is illegal in the United States, but not in other nations.
all of these
,ECO 351 FINAL EXAM MICRO ECONMICS 2021
QUUESTIONS WITH ANSWERS
A chain saw is an example of which of the following factors of production?
Land.
Labor.
Capital.
None of these.
A change in supply cannot be caused by a change in:
resource
prices.
technology.
prices of other goods.
the price of the good
itself. the number of
suppliers.
A common characteristic of oligopolies is:
interdependence in pricing
decisions. independent pricing
decisions.
low industry concentration.
few or no plant-level economies of scale.
A competitive car wash currently hires 4 workers, who together can wash 80 cars per
day. The market price of car washes is $5 per wash, and the price of workers is $60 per
day. The car wash should hire a fifth worker if it would increase total production to at
least:
92 cars per
day. 100 cars
per day. 104
cars per day.
, ECO 351 FINAL EXAM MICRO ECONMICS 2021
QUUESTIONS WITH ANSWERS
110 cars per day.
A competitive firm maximizes its profits (or minimizes is losses) by producing the quantity
where the market price equals the firm's:
marginal cost.
