ECON101 tests A++
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Question 1 of 10 10.0 Points
The branch of economics that examines the impact of choices on aggregates
in the economy is:
A. positive economics.
B. normative economics.
C. macroeconomics.
D. microeconomics.
Answer Key: C
Question 2 of 10 10.0 Points
When we are forced to make choices we are facing the concept of:
A. ceteris paribus.
B. free goods.
C. scarcity.
D. the margin.
Answer Key: C
Question 3 of 10 10.0 Points
An economic system is the set of rules that define _______ and _______ .
A. resources; prices
B. who gets to vote; when elections will be held
C. market prices; factors of production
D. how an economy's resources are to be owned; how decisions about the resources are to be made
Answer Key: D
Question 4 of 10 10.0 Points
In a market capitalist economy:
A. factors of production are owned privately and decisions about their use are basically made by individuals.
B. factors of production are owned by the government but decisions about their use are made privately.
C. private ownership exists but decisions about resource allocation are usually made centrally by the government.
D. there is no role for the government.
Answer Key: A
Question 5 of 10 10.0 Points
The branch of economics that examines the choices of consumers and firms is:
A. positive economics.
B. normative economics.
C. macroeconomics.
D. microeconomics.
Answer Key: D
Question 6 of 10 10.0 Points
Scarcity in economics means:
A. not having sufficient resources to produce all the goods and services we want.
B. the wants of people are limited.
C. there must be poor people in rich countries.
D. economists are clearly not doing their jobs.
Answer Key: A
Question 7 of 10 10.0 Points
In a command socialist economy:
A. resources are government owned but individuals make some decisions over their use.
B. resources are government owned and government exercises broad power over their use.
C. resources are privately owned and individuals make decisions over their use.
D. resources are privately owned but government exercises broad power over their use.
Answer Key: B
Question 8 of 10 10.0 Points
The basic concern of economics is:
A. to keep business firms from losing money.
B. to prove that capitalism is better than socialism.
C. to study the choices people make.
D. to use unlimited resources to produce goods and services to satisfy limited wants.
Answer Key: C
Question 9 of 10 10.0 Points
Whenever a choice is made:
A. the value of all the other choices that could have been made is called opportunity cost.
B. normative economics is encountered.
C. the problem of "all other things unchanged" results.
D. the opportunity cost of that choice is value of the next best alternative
Answer Key: D
Question 10 of 10 10.0 Points
Economics is different from other social sciences because it gives special emphasis
to the study of ______; it is similar to other social sciences because they are all concerned
with the study of _______.
A. unlimited resources; economic systems
B. human interactions; limited resources
C. opportunity costs; choices
D. social behavior; scarcity
Answer Key: C
Does anyone have the test and quizzes for ECON101 Microeconomics at AMU/APUS
MID TERM
Question 1 of 19 5.0 Points
Economics is the study of:
A. increasing the level of productive resources so there is maximum output in society.
B. increasing the level of productive resources so there is a minimum level of income.
C. how people, institutions, and society make choices under conditions of scarcity.
D. the efficient use of scarce resources paid for at the minimum level of cost to consumers and businesses.
Answer Key: C
Question 2 of 19 5.0 Points
Which of the following is not a central focus of the "economic perspective"?
A. Scarcity and choice.
B. The scientific method.
C. Purposeful behavior.
D. Marginal analysis.
Answer Key: B
Question 3 of 19 5.0 Points
The satisfaction or pleasure one gets from consuming a good or service is:
A. price.
B. utility.
C. consumption.
D. preferences.
Answer Key: B
Question 4 of 19 5.0 Points
The private ownership of property resources and use of prices to direct and coordinate economic activity is characteristic of:
A. a command system.
B. a market system.
C. communism.
D. socialism.
Answer Key: B
Question 5 of 19 5.0 Points
Which statement best describes a capitalist economy?
A. The production of goods and services is determined primarily by markets, but the allocation of goods and services is determined primarily by government.
B. The production of goods and services is determined primarily by government, but the allocation of goods and services is determined primarily by markets.
C. The production and allocation of goods and services is determined primarily through markets.
D. The production and allocation of goods and services is determined primarily through government.
Answer Key: C
Question 6 of 19 5.0 Points
Capitalism is an economic system that:
A. produces more capital goods than consumer goods.
B. produces more consumer goods than capital goods.
C. gives the government the right to tax individuals and corporations.
D. private individuals and corporations the right to own productive resources.
Answer Key: D
Question 7 of 19 5.0 Points
In a market system, well-defined property rights are important because they:
A. reduce unnecessary investment.
B. limit destructive economic growth.
C. create economic problems.
D. encourage economic activity.
Answer Key: D
Question 8 of 19 5.0 Points
If two goods are complements:
A. they are consumed independently.
B. an increase in the price of one will increase the demand for the other.
C. a decrease in the price of one will increase the demand for the other.
D. they are necessarily inferior goods.
Answer Key: C
Question 9 of 19 5.0 Points
When the price of a product is increased 10 percent, the quantity demanded decreases 15 percent. In this range of prices, demand for this product is:
A. elastic.
B. inelastic.
C. cross-elastic.
D. unitary elastic.
Answer Key: A
Question 10 of 19 5.0 Points
Demand can be said to be inelastic when:
A. an increase in price results in a reduction in total revenue.
B. a reduction in price results in an increase in total revenue.
C. a reduction in price results in a decrease in total revenue.
D. the elasticity coefficient exceeds one.
Answer Key: C
Question 11 of 19 5.0 Points
Economic growth is shown by a shift of the production possibilities curve outward and to the right.
A. True
B. False
Answer Key: True
Question 12 of 19 5.0 Points
The four factors of production are land, labor, capital, and government services.
A. True
B. False
Answer Key: False
Question 13 of 19 5.0 Points
If demand increases and supply simultaneously decreases, equilibrium price will rise.
A. True
B. False
Answer Key: True
Question 14 of 19 5.0 Points
Property rights have a positive effect in a market economy because they encourage owners to maintain their property.
A. True
B. False
Answer Key: True
Question 15 of 19 5.0 Points
In the price range where demand is inelastic, a decrease in price will result in a decrease in total revenue.
A. True
B. False
Answer Key: True
Question 16 of 19 5.0 Points
Price elasticity of supply decreases the longer the time period.
A. True
B. False
Answer Key: False
Question 17 of 19 5.0 Points
Toothpaste and toothbrushes are substitute goods.
A. True
B. False
Answer Key: False
Question 18 of 19 5.0 Points
A government-set price ceiling will lower equilibrium price and quantity in a market.
A. True
B. False
Answer Key: False
Question 19 of 19 10.0 Points
Under what elasticity conditions would the following be true:
"Increasing the minimum wage will result in a decrease in employment for workers who now earn less than the new minimum wage"?
Does anyone have the test and quizzes for ECON101 Microeconomics at AMU/APUS
week 5 quiz
Question 1 of 10 10.0 Points
Average variable cost is:
A. the firm's variable cost per unit multiplied by the quantity.
B. total variable cost divided by quantity.
C. the difference between average total cost and total variable cost.
D. the difference between total cost and total variable cost.
Answer Key: B
Question 2 of 10 10.0 Points
Which of the following is (are) correct?
A. Firms are organizations that produce goods and services.
B. Firms seek to maximize profits.
C. Firms seek to utilize factors of production in the most efficient way in order to maximize profits.
D. All of the above are correct.
Answer Key: D
Question 3 of 10 10.0 Points
For a restaurant:
A. labor and food would be variable factors of production.
B. a building would be a fixed factor of production in the short run.
C. fire insurance on a building would be a fixed factor of production.
D. A and B are correct.
Answer Key: D
Question 4 of 10 10.0 Points
Diminishing marginal returns means that:
A. each additional unit of an input used will decrease output.
B. each additional unit of an input used will increase output, but by smaller and smaller amounts.
C. each additional unit of an input used will increase output by larger and larger amounts.
D. the firm is maximizing profit.
Answer Key: B
Question 5 of 10 10.0 Points
When marginal cost is below average variable cost, average variable cost must be:
A. at its minimum.
B. at its maximum.
C. falling.
D. rising.
Answer Key: C
Question 6 of 10 10.0 Points
If a firm produces 10 units of output and incurs $30 in average variable cost and $5 in average fixed cost, average total cost is:
A. $30.
B. $35.
C. $50.
D. $300.
Answer Key: B
Question 7 of 10 10.0 Points
In the long run:
A. all inputs are fixed.
B. inputs are neither variable nor fixed.
C. at least one input is variable and one input is fixed.
D. all inputs are variable.
Answer Key: D
Question 8 of 10 10.0 Points
A factor of production whose quantity can be changed during a particular period is a:
A. marginal factor of production.
B. fixed factor of production.
C. incremental factor of production.
D. variable factor of production.
Answer Key: D
Question 9 of 10 10.0 Points
Given constant quantities of all other factors of production, when additional units of a variable factor of production add less and less to total output, then the firm is experiencing:
A. constant marginal returns.
B. increasing marginal returns.
C. diminishing marginal returns.
D. negative marginal returns.
Answer Key: C
Question 10 of 10 10.0 Points
The sum of fixed and variable costs is:
A. total cost.
B. marginal cost.
C. variable cost.
D. average cost.
Answer Key: A
Does anyone have the test and quizzes for ECON101 Microeconomics at AMU/APUS
WEEK 6 QUIZ
Question 1 of 10 10.0 Points
Perfect competition is characterized by:
A. rivalry in advertising.
B. fierce quality competition.
C. the inability of any one firm to influence price.
D. widely recognized brands.
Answer Key: C
Question 2 of 10 10.0 Points
An industry that contains a firm that is the only producer of a good or service for which there are no close substitutes and for which entry by potential rivals is prohibitively difficult is:
A. a duopoly.
B. a monopoly.
C. an oligopoly.
D. perfect competition.
Answer Key: B
Question 3 of 10 10.0 Points
Which of the following is true in a perfectly competitive market?
A. One unit of a good or service cannot be differentiated from any other on any basis.
B. Brand preferences exist but are very slight.
C. Barriers to entry are relatively strong.
D. Information is costly.
Answer Key: A
Question 4 of 10 10.0 Points
The assumptions of perfect competition imply that:
A. individuals in the market accept the market price as given.
B. individuals can influence the market price.
C. the price will be a fair price.
D. the price will be low.
Answer Key: A
Question 5 of 10 10.0 Points
Which of the following is true?
A. Price and average revenue are never equal.
B. Price and marginal revenue are seldom equal under conditions of perfect competition.
C. When a firm is operating under perfectly competitive market conditions, price and marginal cost will always be equal if the firm is maximizing profits.
D. Average revenue equals price times quantity.
Answer Key: C
Question 6 of 10 10.0 Points
If a firm possesses monopoly power, it means that:
A. the firm can set its own price based on its output decision.
B. the firm's demand curve is always elastic.
C. the firm is necessarily a monopoly.
D. A and C are true.
Answer Key: A
Question 7 of 10 10.0 Points
Marginal revenue:
A. is the slope of the average revenue curve.
B. equals the market price in perfect competition.
C. is the change in quantity divided by the change in total revenue.
D. is the price divided by the changes in quantity.
Answer Key: B
Question 8 of 10 10.0 Points
A natural monopoly exists whenever a single firm:
A. is owned and operated by the federal or local government.
B. is investor owned but granted the exclusive right by the government to operate in a market.
C. confronts economies of scale over the entire range of production that is relevant to its market.
D. has gained control over a strategic input of an important production process.
Answer Key: C
Question 9 of 10 10.0 Points
Which of the following is (are) true?
A. A monopoly firm is a price taker.
B. MR > P if the demand curve is downward sloping.
C. MR = MC is a profit-maximizing rule for any firm.
D. All of the above are true.
Answer Key: C
Question 10 of 10 10.0 Points
Perfect competition is important to study because it:
A. is a theoretical extreme used for analysis.
B. is a realistic model of a few key markets.
C. is a realistic model of many different markets.
D. avoids all real-world problems and complexities.
Answer Key: A
Does anyone have the test and quizzes for ECON101 Microeconomics at AMU/APUS
Week 7 quiz
Question 1 of 10 10.0 Points
Monopolistic competition is an industry characterized by a:
A. small number of firms producing identical products, with barriers to entry for firms.
B. small number of firms producing similar products, with relatively easy entry for firms.
C. large number of firms producing similar products, with relatively easy entry for firms.
D. large number of firms producing identical products, with relatively easy entry for firms.
Answer Key: C
Question 2 of 10 10.0 Points
Imperfect competition is:
A. a market structure with no more than one firm in the industry.
B. an industry in which all firms are price takers.
C. a market structure where firms have a degree of monopoly power.
D. described by all of the above.
Answer Key: C
Question 3 of 10 10.0 Points
Imperfect competition includes:
A. monopolistic competition and oligopoly.
B. monopolistic competition and monopoly.
C. perfect competition and monopoly.
D. monopoly and oligopoly.
Answer Key: A
Question 4 of 10 10.0 Points
A firm in monopolistic competition maximizes its profit by producing at the level at which:
A. MC = ATC.
B. MC = AR.
C. MC = P.
D. MC = MR.
Answer Key: D
Question 5 of 10 10.0 Points
An industry characterized by many firms, producing similar but differentiated products, in a market with easy entry and exit is called:
A. perfect competition.
B. monopoly.
C. monopolistic competition.
D. oligopoly.
Answer Key: C
Question 6 of 10 10.0 Points
An oligopoly knows that its _______ affect(s) its _______ and that the _______ of its rivals will affect it.
A. actions; rivals; reactions
B. price changes ; total revenue in a positive way; reactions
C. actions rarely; rivals; actions
D. price increases; total revenue in the long run only; large but not small price changes
Answer Key: A
Question 7 of 10 10.0 Points
A concentration ratio is used to measure:
A. efficiency.
B. diseconomies of scale.
C. marginal cost.
D. market dominance.
Answer Key: D
Question 8 of 10 10.0 Points
An industry dominated by a few firms, where each of those firms recognizes that its own choices will affect the choices of its rivals and that its rivals' choices will affect it, is a(n):
A. monopoly.
B. oligopoly.
C. monopolistic competition.
D. perfect competition.
Answer Key: B
Question 9 of 10 10.0 Points
Price for a firm under monopolistic competition is:
A. equal to marginal revenue.
B. greater than marginal revenue.
C. less than marginal revenue.
D. greater than total revenue.
Answer Key: B
Question 10 of 10 10.0 Points
Unwritten or unspoken understandings through which firms collude to restrict competition are called:
A. cartelization.
B. oligopolization.
C. overt collusion.
D. tacit collusion.
Answer Key: D
ECON FINAL
Part 1 of 1 - 100.0 Points
Question 1 of 19 5.0 Points
One defining characteristic of pure monopoly is that:
A. The monopolist is a price taker
B. The monopolist uses advertising
C. The monopolist produces a product with no close substitutes
D. There is relatively easy entry into the industry, but exit is difficult
Answer Key: C
Question 2 of 19 5.0 Points
Which is a barrier to entry?
A. Close substitutes
B. Diseconomies of scale
C. Government licensing
D. Price-taking behavior
Answer Key: C
Question 3 of 19 5.0 Points
Other things equal, which reduces competition in an industry?
A. Patent laws
B. Freedom of entry for new firms
C. An increase in the number of producers
D. An increase in the number of buyers
Answer Key: A
Question 4 of 19 5.0 Points
The representative firm in a purely competitive industry:
A. Will always earn a profit in the short run
B. May earn either an economic profit or a loss in the long run
C. Will always earn an economic profit in the long run
D. Will earn an economic profit of zero in the long run
Answer Key: D
Question 5 of 19 5.0 Points
An example of a monopolistically competitive industry would be:
A. Steel
B. Soybeans
C. Electricity
D. Retail clothing
Answer Key: D
Question 6 of 19 5.0 Points
Firms in an industry will not earn long-run economic profits if:
A. Fixed costs are zero
B. The number of firms in the industry is fixed
C. There is free entry and exit of firms in the industry
D. Production costs for a given level of output are minimized
Answer Key: C
Question 7 of 19 5.0 Points
Marginal product is:
A. the increase in total output attributable to the employment of one more worker.
B. the increase in total revenue attributable to the employment of one more worker.
C. the increase in total cost attributable to the employment of one more worker.
D. total product divided by the number of workers employed.
Answer Key: A
Question 8 of 19 5.0 Points
The law of diminishing returns indicates that:
A. as extra units of a variable resource are added to a fixed resource, marginal product will decline beyond some point.
B. because of economies and diseconomies of scale a competitive firm's long-run average total cost curve will be U-shaped.
C. the demand for goods produced by purely competitive industries is downsloping.
D. beyond some point the extra utility derived from additional units of a product will yield the consumer smaller and smaller extra amounts of satisfaction.
Answer Key: A
Question 9 of 19 5.0 Points
Which of the following is most likely to be a variable cost?
A. fuel and power payments
B. interest on business loans
C. rental payments on IBM equipment
D. real estate taxes
Answer Key: A
Question 10 of 19 5.0 Points
If average total cost is declining, then:
A. marginal cost must be greater than average total cost.
B. the average fixed cost curve must lie above the average variable cost curve.
C. marginal cost must be less than average total cost.
D. total cost must also be declining.
Answer Key: C
Question 11 of 19 5.0 Points
The selling of stock is debt financing for a corporation.
A. True
B. False
Answer Key: False
Question 12 of 19 5.0 Points
Average fixed costs diminish continuously as output increases.
A. True
B. False
Answer Key: True
Question 13 of 19 5.0 Points
Patents and copyrights were established by the government to reduce oligopoly and monopoly power.
A. True
B. False
Answer Key: False
Question 14 of 19 5.0 Points
Prices in oligopolistic industries are predicted to fluctuate widely and frequently compared to other market structures.
A. True
B. False
Answer Key: False
Question 15 of 19 5.0 Points
The positive view of advertising suggests that it contributes to economic efficiency in the economy.
A. True
B. False
Answer Key: True
Question 16 of 19 5.0 Points
Price fixing is illegal under Section 1 of the Sherman Act.
A. True
B. False
Answer Key: True
Question 17 of 19 5.0 Points
Rent-seeking behavior refers to activities designed to transfer income or wealth to a particular firm or resource supplier at someone else's or society's expense.
A. True
B. False
Answer Key: True
Question 18 of 19 5.0 Points
A purely competitive firm is a price maker, but a monopolist is a price taker.
A. True
B. False
Answer Key: False
Question 19 of 19 10.0 Points
Which of the following is (are) most likely to be produced under conditions resembling perfect competition - automobiles, beer, corn, diamonds, and eggs. Defend your answer in economic terms.
http://biology-forums.com/index.php?topic=52443.14
Possibly the same one as above
Question 1 of 19 5.0 Points
One defining characteristic of pure monopoly is that:
A. The monopolist is a price taker
B. The monopolist uses advertising
Correct
C. The monopolist produces a product with no close substitutes
D. There is relatively easy entry into the industry, but exit is difficult
Answer Key: C
Question 2 of 19 5.0 Points
Which is a barrier to entry?
A. Close substitutes
B. Diseconomies of scale
Correct
C. Government licensing
D. Price-taking behavior
Answer Key: C
Question 3 of 19 5.0 Points
Other things equal, which reduces competition in an industry?
Correct
A. Patent laws
B. Freedom of entry for new firms
C. An increase in the number of producers
D. An increase in the number of buyers
Answer Key: A
Question 4 of 19 5.0 Points
The representative firm in a purely competitive industry:
A. Will always earn a profit in the short run
B. May earn either an economic profit or a loss in the long run
C. Will always earn an economic profit in the long run
Correct
D. Will earn an economic profit of zero in the long run
Answer Key: D
Question 5 of 19 5.0 Points
An example of a monopolistically competitive industry would be:
A. Steel
B. Soybeans
C. Electricity
Correct
D. Retail clothing
Answer Key: D
Question 6 of 19 5.0 Points
Firms in an industry will not earn long-run economic profits if:
A. Fixed costs are zero
B. The number of firms in the industry is fixed
Correct
C. There is free entry and exit of firms in the industry
D. Production costs for a given level of output are minimized
Answer Key: C
Question 7 of 19 5.0 Points
Marginal product is:
Correct
A. the increase in total output attributable to the employment of one more worker.
B. the increase in total revenue attributable to the employment of one more worker.
C. the increase in total cost attributable to the employment of one more worker.
D. total product divided by the number of workers employed.
Answer Key: A
Question 8 of 19 5.0 Points
The law of diminishing returns indicates that:
A. as extra units of a variable resource are added to a fixed resource, marginal product will decline beyond some point.
B. because of economies and diseconomies of scale a competitive firm's long-run average total cost curve will be U-shaped.
C. the demand for goods produced by purely competitive industries is downsloping.
Incorrect
D. beyond some point the extra utility derived from additional units of a product will yield the consumer smaller and smaller extra amounts of satisfaction.
Answer Key: A
Question 9 of 19 5.0 Points
Which of the following is most likely to be a variable cost?
Correct
A. fuel and power payments
B. interest on business loans
C. rental payments on IBM equipment
D. real estate taxes
Answer Key: A
Question 10 of 19 5.0 Points
If average total cost is declining, then:
A. marginal cost must be greater than average total cost.
B. the average fixed cost curve must lie above the average variable cost curve.
Correct
C. marginal cost must be less than average total cost.
D. total cost must also be declining.
Answer Key: C
Question 11 of 19 5.0 Points
The selling of stock is debt financing for a corporation.
Correct
A. True
B. False
Answer Key: False
Question 12 of 19 5.0 Points
Average fixed costs diminish continuously as output increases.
Correct
A. True
B. False
Answer Key: True
Question 13 of 19 5.0 Points
Patents and copyrights were established by the government to reduce oligopoly and monopoly power.
Correct
A. True
B. False
Answer Key: False
Question 14 of 19 5.0 Points
Prices in oligopolistic industries are predicted to fluctuate widely and frequently compared to other market structures.
Correct
A. True
B. False
Answer Key: False
Question 15 of 19 5.0 Points
The positive view of advertising suggests that it contributes to economic efficiency in the economy.
Correct
A. True
B. False
Answer Key: True
Question 16 of 19 5.0 Points
Price fixing is illegal under Section 1 of the Sherman Act.
Correct
A. True
B. False
Answer Key: True
Question 17 of 19 5.0 Points
Rent-seeking behavior refers to activities designed to transfer income or wealth to a particular firm or resource supplier at someone else's or society's expense.
Correct
A. True
B. False
Answer Key: True
Question 18 of 19 5.0 Points
A purely competitive firm is a price maker, but a monopolist is a price taker.
Correct
A. True
B. False
Answer Key: False
Question 19 of 19 10.0 Points
Which of the following is (are) most likely to be produced under conditions resembling perfect competition - automobiles, beer, corn, diamonds, and eggs. Defend your answer in economic terms.
Perfect competition consists of a large market of infinite buyers and sellers. Farms are a great example of this, as all owners are selling goods to the same consumers or government. Prices are fixed, or nearly fixed, as there are so many sellers in the market. Corn and eggs are good examples, as the sellers are numerous. Automobiles and diamonds are a more niche industry, with fewer sellers competing. These cannot operate under perfect competition, as the sellers can change the price as they please, since there are fewer competitors. Beer could really go either way. On one hand, it is a perfect competition, as there are endless numbers of sellers. However, prices among beer sellers are not fixed, and there are greater barriers to entering the market, such as government licensing. Beer competitors are not competing based on price, but rather by product differences.
[Solved] ECON101 tests A++
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ECON101 tests A++
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