ECON 102 QUESTIONS AND ANSWERS LATEST UPDATED
VERSION, GRADED A+.
The law of demand implies that the demand curve
has a negative slope
The difference between the short run and the long run is
that tin the short run at least one factor of production cannot be varied while in the long run all factors
of production can be varied.
As long as output increases,
marginal costs decrease
Fixed Cost
Costs that do not vary with output are
When a negative externality exists, the private market tends to produce
more than the economically efficient output level
Which of the following is a problem with the Exchange of Equivalents theory of prices?
If people value two goods equally, there is nothing to be gained by exchanging them
The United States has a comparative advantage in producing airplanes if
It can produce them at a lower opportunity cost than can other nations
Scarcity implies that
People must make choices
The marginal cost curve intersects
the minimum of the average variable cost and average total cost curves
Kathy eats five slices of pizza on a Saturday night but admits each slice doesn't taste as good as the
previous one. This suggests that for Kathy the
marginal utility of a slice of pizza is positive but decreasing
Lowering the tariff on imported ethanol
increases the imports of ethanol
This can protect United States jobs in the protected industry, which increases economic welfare of the
country as a whole
Restricting imports
VERSION, GRADED A+.
The law of demand implies that the demand curve
has a negative slope
The difference between the short run and the long run is
that tin the short run at least one factor of production cannot be varied while in the long run all factors
of production can be varied.
As long as output increases,
marginal costs decrease
Fixed Cost
Costs that do not vary with output are
When a negative externality exists, the private market tends to produce
more than the economically efficient output level
Which of the following is a problem with the Exchange of Equivalents theory of prices?
If people value two goods equally, there is nothing to be gained by exchanging them
The United States has a comparative advantage in producing airplanes if
It can produce them at a lower opportunity cost than can other nations
Scarcity implies that
People must make choices
The marginal cost curve intersects
the minimum of the average variable cost and average total cost curves
Kathy eats five slices of pizza on a Saturday night but admits each slice doesn't taste as good as the
previous one. This suggests that for Kathy the
marginal utility of a slice of pizza is positive but decreasing
Lowering the tariff on imported ethanol
increases the imports of ethanol
This can protect United States jobs in the protected industry, which increases economic welfare of the
country as a whole
Restricting imports
