Micro Economics Test 2 Study Guide

question

Price elasticity has an absolute value less than 1

answer

Demand is said to be inelastic only if

question

Price elasticity has an absolute value of 1

answer

Demand is said to be unit elastic whenever

question

Price elasticity has an absolute value greater than 1

answer

Demand is said to be elastic whenever

question

Elastic

answer

If a price reduction leads to larger total revenue, demand is

question

$50

answer

In Exhibit 0062, what is the total revenue at point a?

question

Insulin

answer

For which of the following is demand most likely to be perfectly inelastic

question

For goods with many substitutes than for goods with only a few

answer

Demand is more elastic

question

Consumers have a long time to adjust to a price range

answer

Which of the following tends to make demand for a good more elastic?

question

Face-lifts

answer

For which of the following medical goods or services is the income elasticity of demand likely to be the largest?

question

Negative

answer

The value of cross-price elasticity of demand between golf balls and golf clubs is

question

The relationship between the demand for one good and the price of another

answer

Cross-price elasticity of demand measures

question

Additional satisfaction obtained from consuming one more unit of a good

answer

Marginal utility is the

question

The marginal utility of the last donut was negative

answer

"I don't feel so good. I shouldn't have had that last donut." Which statement best describes this situation

question

answer

Consider the information in Exhibit 0077. What is the marginal utility of the third pretzel?

question

answer

In Exhibit 0077, what is the total utility of three pretzels?

question

Marginal utility of A/price of A = marginal utility of B/price of B

answer

If a consumer allocates income between good A and good B, total utility is maximized when

question

$1.50

answer

Elvis values the first gravy sandwich at $5. the second at $4.50, the third at $4. If he buys three for $4 each, his consumer surplus is

question

The difference between the maximum amount that a consumer is willing to pay for a given amount of a good and the amount that the consumer actually pays

answer

Consumer Surplus is

question

Explicit costs

answer

Cash Payments to a steel mill for steel used in production would be an example of

question

$26,000

answer

A young chef is considering opening his own sushi bar. To do so, he would have to quit his current job, which pays $20,000 a year, and take over a store building that he owns and currently rents to his brother for $6,000 a year. His expenses at the sushi bar would be $50,000 for food and $2,000 for gas and electricity. What are his implicit costs?

question

Total revenue minus explicit costs

answer

Accounting profit is equal to

question

Variable inputs

answer

Inputs can be increased or decreased in the short run are called

question

Between the second and third units of labor

answer

Given the information in Exhibit 0102, at which point do diminishing marginal returns set in?

question

Fixed cost plus variable costs

answer

Total costs are calculated as

question

Increasing

answer

When marginal product is decreasing, marginal cost is

question

$20

answer

In Exhibit 0107, the average variable cost of producing 20 units is

question

answer

If the firm represented in Exhibit 0112 wants to produce output level q, then in the long run it should build a plant size with average total cost curve of

question

Long-run average cost falls as one firm expands plant size

answer

Economies of scale occur where

1 of 28

question

Price elasticity has an absolute value less than 1

answer

Demand is said to be inelastic only if

question

Price elasticity has an absolute value of 1

answer

Demand is said to be unit elastic whenever

question

Price elasticity has an absolute value greater than 1

answer

Demand is said to be elastic whenever

question

Elastic

answer

If a price reduction leads to larger total revenue, demand is

question

$50

answer

In Exhibit 0062, what is the total revenue at point a?

question

Insulin

answer

For which of the following is demand most likely to be perfectly inelastic

question

For goods with many substitutes than for goods with only a few

answer

Demand is more elastic

question

Consumers have a long time to adjust to a price range

answer

Which of the following tends to make demand for a good more elastic?

question

Face-lifts

answer

For which of the following medical goods or services is the income elasticity of demand likely to be the largest?

question

Negative

answer

The value of cross-price elasticity of demand between golf balls and golf clubs is

question

The relationship between the demand for one good and the price of another

answer

Cross-price elasticity of demand measures

question

Additional satisfaction obtained from consuming one more unit of a good

answer

Marginal utility is the

question

The marginal utility of the last donut was negative

answer

"I don't feel so good. I shouldn't have had that last donut." Which statement best describes this situation

question

answer

Consider the information in Exhibit 0077. What is the marginal utility of the third pretzel?

question

answer

In Exhibit 0077, what is the total utility of three pretzels?

question

Marginal utility of A/price of A = marginal utility of B/price of B

answer

If a consumer allocates income between good A and good B, total utility is maximized when

question

$1.50

answer

Elvis values the first gravy sandwich at $5. the second at $4.50, the third at $4. If he buys three for $4 each, his consumer surplus is

question

The difference between the maximum amount that a consumer is willing to pay for a given amount of a good and the amount that the consumer actually pays

answer

Consumer Surplus is

question

Explicit costs

answer

Cash Payments to a steel mill for steel used in production would be an example of

question

$26,000

answer

question

Total revenue minus explicit costs

answer

Accounting profit is equal to

question

Variable inputs

answer

Inputs can be increased or decreased in the short run are called

question

Between the second and third units of labor

answer

Given the information in Exhibit 0102, at which point do diminishing marginal returns set in?

question

Fixed cost plus variable costs

answer

Total costs are calculated as

question

Increasing

answer

When marginal product is decreasing, marginal cost is

question

$20

answer

In Exhibit 0107, the average variable cost of producing 20 units is

question

answer

If the firm represented in Exhibit 0112 wants to produce output level q, then in the long run it should build a plant size with average total cost curve of

question

Long-run average cost falls as one firm expands plant size

answer

Economies of scale occur where

Continue to order Get a quote

Micro Economics Test 2 Study Guide

Recent Posts

Recent Comments

Calculate the price of your order

Our guarantees

Money-back guarantee

Zero-plagiarism guarantee

Free-revision policy

Privacy policy

Fair-cooperation guarantee