Economics Quiz Review for Competitive Markets | Microeconomics | Trường Đại học Quốc tế, Đại học Quốc gia Thành phố Hồ Chí Minh

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39. For a firm operating in a competitive industry, which of the following statements is not correct? a. Price equals marginal revenue. b. Total revenue is constant. c. Price equals average revenue. d. Marginal revenue is constant. Feedback
The correct answer is: Total revenue is constant.
11. If a nation that imports a good imposes a tariff, it will increase a. all of the above. b.
the domestic quantity supplied. c. the domestic quantity demanded d.
the quantity imported from abroad. Feedback
The correct answer is: the domestic quantity supplied.
32. One of the defining characteristics of a perfectly competitive market is a. a similar product. b.
significant advertising by firms to promote their products. c.
a large number of buyers and a small number of sellers. d. a small number of sellers. Feedback
The correct answer is: a similar product.
31. Which of the following statements regarding a competitive market is not correct? a. Price equals average revenue. b.
There are many buyers and many sellers in the market. c.
Firms can freely enter or exit the market. d.
Price exceeds marginal revenue. Feedback
The correct answer is: Price exceeds marginal revenue. Question 5 Correct
37. Firms that operate in perfectly competitive markets try to a. maximize profits. b. Both b and c are correct. c.
equate marginal revenue with average total cost. d. maximize revenues. Feedback
The correct answer is: maximize profits. Question 6 Correct
4. The price elasticity of demand can range between a.
negative infinity and infinity. b. zero and infinity. c. negative one and one. d. zero and one. Feedback
The correct answer is: zero and infinity. Question 7
33. Which of the following statements regarding a competitive market is not correct? a.
Because of firm location or product differences, some firms can charge a higher
price than other firms and still maintain their sales volume. b.
Price and average revenue are equal. c.
There are many buyers and many sellers in the market. d.
Price and marginal revenue are equal. Feedback
The correct answer is: Because of firm location or product differences, some firms
can charge a higher price than other firms and still maintain their sales volume. Question 8
38. Which of the following statements is correct? a.
For all firms, marginal revenue equals the price of the good. b.
Only for competitive firms does average revenue equal marginal revenue. c.
Only for competitive firms does average revenue equal the price of the good. d.
Marginal revenue can be calculated as total revenue divided by the quantity sold. Feedback
The correct answer is: Only for competitive firms does average revenue equal marginal revenue. Question 9 Correct
1. Economics deals primarily with the concept of a. poverty. b. scarcity. c. banking. d. money. Feedback
The correct answer is: scarcity. Question 10 Correct
17. Absolute advantage is found by comparing different producers’ a.
locational and logistical circumstances. b.
input requirements per unit of output. c. opportunity costs. d.
payments to land, labor, and capital. Feedback
The correct answer is: input requirements per unit of output. Question 11
16. If a binding price ceiling is imposed on the computer market, then a.
the quantity of computers demanded will increase. b.
the quantity of computers supplied will decrease. c. All of the above are correct. d.
a shortage of computers will develop. Feedback
The correct answer is: a shortage of computers will develop. Question 12
14. Which of the following statements is not correct? a. Fixed costs are constant. b.
Variable costs change as output changes. c.
Average fixed costs are constant. d.
Average total costs are typically U-shaped. Feedback
The correct answer is: Average fixed costs are constant. Question 13
7. Benny rents 5 movies per month when the price is $3.00 per rental and 7 movies
per month when the price is $2.50 per rental. Benny’s demand demonstrates the law of a. demand. b. price. c. income. d. supply. Feedback The correct answer is: demand. Question 14 Correct
25. There are very few, if any, good substitutes for motor oil. Therefore, a.
the demand for motor oil would tend to respond strongly to changes in prices of other goods. b.
the supply of motor oil would tend to respond strongly to changes in people’s
tastes for large cars relative to their tastes for small cars. c.
the demand for motor oil would tend to be elastic. d.
the demand for motor oil would tend to be inelastic. Feedback
The correct answer is: the demand for motor oil would tend to be inelastic. Question 15
15. If a binding price ceiling is imposed on the computer market, then a.
the supply of computers will decrease. b. All of the above are correct. c.
the demand for computers will increase. d.
a shortage of computers will develop. Feedback
The correct answer is: a shortage of computers will develop. Question 16
24. The demand for Werthers candy is likely a.
elastic because Werthers are regarded as a necessity by many people. b.
inelastic because it is usually eaten quickly, making the relevant time horizon short. c.
elastic because there are many close substitutes for Werthers. d.
elastic because candy is expensive relative to other snacks. Feedback
The correct answer is: inelastic because it is usually eaten quickly, making the relevant time horizon short. Question 17 Correct
28. In considering how to allocate its scarce resources among its various members, a household considers a. all of the above b. each member’s desires. c. each member’s abilities. d. each member’s efforts. Feedback
The correct answer is: all of the above Question 18
23. Welfare economics is the study of how a.
a price ceiling compares to a price floor. b.
the allocation of resources affects economic well-being. c.
a consumer’s optimal choice affects her demand curve. d.
the government helps poor people. Feedback
The correct answer is: the allocation of resources affects economic well-being.
10. Currently you purchase 6 packages of hot dogs a month. You will graduate
from college in December, and you will start a new job in January. You have no
plans to purchase hot dogs in January. For you, hot dogs are a. an inferior good. b. a complementary good. c. a substitute good. d. a normal good. Feedback
The correct answer is: an inferior good. Question 20
20. A monopoly firm expands its output and lowers its price. The firm finds that its
total revenue falls. Hence, the firm is producing in the a.
elastic range of its demand curve. b.
elastic range of its supply curve. c.
inelastic range of its demand curve. d.
inelastic range of its supply curve. Feedback
The correct answer is: inelastic range of its demand curve. Question 21 27. Resources are a.
scarce for households but plentiful for economies. b.
scarce for households and scarce for economies. c.
plentiful for households and plentiful for economies. d.
plentiful for households but scarce for economies. Feedback
The correct answer is: scarce for households and scarce for economies. Question 22
2. Which of the following would NOT shift the demand curve for Lavie? a. an increase in income b. a change in tastes for Lavie c.
a decrease in the price of Vital d.
a change in the price of a Lavie Feedback
The correct answer is: a change in the price of a Lavie Question 23
36. Which of the following firms is the closest to being a perfectly competitive firm? a. a hot dog vendor in New York b. Ford Motor Company c. the campus bookstore d. Microsoft Corporation Feedback
The correct answer is: a hot dog vendor in New York Question 24
6. A good will have a more inelastic demand, a.
the greater the availability of close substitutes. b.
the broader the definition of the market. c. the longer the period of time. d.
the more it is regarded as a luxury. Feedback
The correct answer is: the longer the period of time. Question 25
12. If a producer can use resources to produce either good A or good B, then good A and good B are a. substitutes in consumption. b. substitutes in production. c. complements in consumption. d. complements in production. Feedback
The correct answer is: substitutes in production. Question 26
9. If a firm in a perfectly competitive market triples the number of units of output sold, then total revenue will a. more than triple. b.
Any of the above may be true depending on the firm’s labor productivity. c. exactly triple. d. less than triple. Feedback
The correct answer is: exactly triple. Question 27
29. Which of the following statements is correct? a.
The demand for bourbon whiskey is more elastic than the demand for alcoholic beverages in general. b.
The demand for natural gas is more elastic over a short period of time than over a long period of time. c. All of the above are correct. d.
The demand for smoke alarms is more elastic than the demand for Persian rugs. Feedback
The correct answer is: The demand for bourbon whiskey is more elastic than the
demand for alcoholic beverages in general. Question 28
22. For a good that is a necessity, demand a. tends to be elastic. b.
cannot be represented by a demand curve in the usual way. c. tends to be inelastic. d. has unit elasticity. Feedback
The correct answer is: tends to be inelastic. Question 29
40. A weaker demand together with a stronger supply would necessarily result in a. a lower price. b.
an increase in equilibrium quantity. c. a higher price. d.
a decrease in equilibrium quantity. Feedback
The correct answer is: a lower price. Question 30
18. When a country allows trade and becomes an importer of a good, a.
consumer surplus decreases and producer surplus increases. b.
consumer surplus and producer surplus both decrease. c.
consumer surplus and producer surplus both increase. d.
consumer surplus increases and producer surplus decreases.