Week 3 Activity 1: Midterm Exam
Top of Form
Question 1
In general, what is a price index? What questions does it help answer?
Answer:
Question 2
For the perfectly competitive firm, price equals marginal revenue because _________.
Choose one answer.
a. when another unit of the good is sold, total revenue increases by the price of the good
b. when another unit of the good is sold, total revenue decreases by the price of the good
c. when another unit of the good is sold, total revenue increases by less than the price of the good
d. when another unit of the good is sold, total revenue increases by more than the price
Question 3
The law of supply states that _________.
Choose one answer.
a. firms supply more of a product as consumer income rises
b. firms supply more of a product as consumer income falls
c. firms supply more of a product as the price of the product rises
d. firms supply more of a product as the price of the product falls
Question 4
The price elasticity of demand is calculated by _________.
Choose one answer.
a. the change in price divided by the change in quantity demanded
b. the change in quantity demanded divided by the change in price
c. the percentage change in price divided by the percentage change in quantity demanded
d. the percentage change in quantity demanded divided by the percentage change in price
Question 5
Scarcity can best be defined as a situation in which _________.
Choose one answer.
a. there are no buyers willing to purchase what sellers have produced
b. there are not enough goods to satisfy all of the buyers’ demand
c. resources are limited in quantity and can be used in different ways
d. there is not enough money to satisfy consumers’ wants
Question 6
Match the description to the right curve.
is cost that varies with the level of output
is cost that does not vary with output
is the sum of total variable cost and total fixed cost
shows the additional cost of each additional unit of output a firm produces
is total cost divided by quantity.
is the firm’s variable cost per unit of output; it is total variable cost divided by quantity
which is total fixed cost divided by quantity
Question 7
State the essential difference between the classical and Keynesian schools of thought. If you were a public policymaker and received conflicting advice from a classical and a Keynesian economist, how would you choose? Explain.
Answer:
Question 8
In the short-run, ______ factors of production are fixed, while in the long-run, _____ of them are.
Choose one answer.
a. some, none
b. all, none
c. no, at least some
d. all, at least some
Question 9
When economists say a market has "barriers to entry" they refer to _________.
Choose one answer.
a. monopolists being prohibited from selling their products to certain customers
b. a policy that some countries establish to reduc.
Introduction to ArtificiaI Intelligence in Higher Education
Week 3 Activity 1 Midterm ExamTop of FormQuestion 1 In gene.docx
1. Week 3 Activity 1: Midterm Exam
Top of Form
Question 1
In general, what is a price index? What questions does it help
answer?
Answer:
2. Question 2
For the perfectly competitive firm, price equals marginal
revenue because _________.
Choose one answer.
a. when another unit of the good is sold, total revenue increases
by the price of the good
3. b. when another unit of the good is sold, total revenue decreases
by the price of the good
c. when another unit of the good is sold, total revenue increases
by less than the price of the good
d. when another unit of the good is sold, total revenue increases
by more than the price
Question 3
The law of supply states that _________.
Choose one answer.
a. firms supply more of a product as consumer income rises
b. firms supply more of a product as consumer income falls
c. firms supply more of a product as the price of the product
rises
d. firms supply more of a product as the price of the product
falls
Question 4
The price elasticity of demand is calculated by _________.
Choose one answer.
a. the change in price divided by the change in quantity
4. demanded
b. the change in quantity demanded divided by the change in
price
c. the percentage change in price divided by the percentage
change in quantity demanded
d. the percentage change in quantity demanded divided by the
percentage change in price
Question 5
Scarcity can best be defined as a situation in which _________.
Choose one answer.
a. there are no buyers willing to purchase what sellers have
produced
b. there are not enough goods to satisfy all of the buyers’
demand
c. resources are limited in quantity and can be used in different
ways
d. there is not enough money to satisfy consumers’ wants
Question 6
Match the description to the right curve.
5. is cost that varies with the level of output
is cost that does not vary with output
is the sum of total variable cost and total fixed cost
shows the additional cost of each additional unit of output a
firm produces
is total cost divided by quantity.
is the firm’s variable cost per unit of output; it is total variable
cost divided by quantity
which is total fixed cost divided by quantity
Question 7
State the essential difference between the classical and
Keynesian schools of thought. If you were a public policymaker
and received conflicting advice from a classical and a
Keynesian economist, how would you choose? Explain.
Answer:
Question 8
In the short-run, ______ factors of production are fixed, while
in the long-run, _____ of them are.
Choose one answer.
6. a. some, none
b. all, none
c. no, at least some
d. all, at least some
Question 9
When economists say a market has "barriers to entry" they refer
to _________.
Choose one answer.
a. monopolists being prohibited from selling their products to
certain customers
b. a policy that some countries establish to reduce imports from
other countries
c. factors that prevent other firms from challenging a firm with
monopoly power
d. economic profits that are positive, but too high to encourage
entry
Question 10
Match each example with the right market form.
7. Local residential electric power
soft drinks
long-distance service
lumber
Question 11
Match the key terms and definitions.
are people or firms that consume a public good without paying
for it
measures the difference between total revenue received by firms
at a given quantity of output and the total cost of producing it
are resources for which no property rights have been defined
is the ability to change the market price
is the failure of private decision in the marketplace to achieve
an efficient allocation of scarce resources
is the amount by which the total benefits to consumers from
consuming a good exceed their total expenditures on the good
8. Question 12
In the long-run _________.
Choose one answer.
a. all factors of production are fixed
b. all factors of production are variable
c. some factors of production are variable, while at least one
factor of production is fixed
d. at least one factor of production are fixed, and at least two
factors of production are variable
Question 13
In the short-run _________.
Choose one answer.
a. all factors of production are fixed
b. all factors of production are variable
c. some factors of production are variable, while at least one
factor of production is fixed
d. No factors of production are fixed, and at least two factors of
production are variable
9. Question 14
A supply curve is defined as the relationship between
_________.
Choose one answer.
a. the price of a good and the quantity that consumers are
willing to buy
b. the price of a good and the quantity that producers are willing
to sell
c. the income of consumers and the quantity of a product that
consumers are willing to buy
d. the income of consumers and the quantity of a product that
producers are willing to sell
Question 15
If the price elasticity of demand is 1, demand is _________.
Choose one answer.
a. upward sloping
b. inelastic
c. unitary elastic
10. d. elastic
Question 16
A demand curve is defined as the relationship between
_________.
Choose one answer.
a. the price of a good and the quantity of that good that
consumers are willing to buy
b. the price of a good and the quantity of that good that
producers are willing to sell
c. the income of consumers and the quantity of a good that
consumers are willing to buy
d. the income of consumers and the quantity of a good that
producers are willing to sell
Question 17
What is the rule of profit maximization?
Choose one answer.
a. Produce where MR = MC
b. Produce where MR > MC
c. Produce where MR < MC
11. d. Produce where TR > TC
Question 18
Suppose the marginal benefit of an activity exceeds the
marginal cost. What does the marginal decision rule say a
maximizing decision maker will do?
Answer:
Question 19
A firm will not shut down in the short-run as long as
_________.
Choose one answer.
a. price exceeds average fixed cost at the level of output where
marginal revenue equals marginal cost
b. price exceeds average variable cost at the level of output
where marginal revenue equals marginal cost
c. price exceeds marginal cost at the level of output where
marginal revenue equals marginal cost
d. price exceeds total revenue at the level of output where
marginal revenue equals marginal
Question 20
Describe the concept of the invisible hand.
Answer:
12. Question 21
Sotoland is a small country that produces two types of products,
air conditioners, and snowmobiles. Its production possibilities
frontier is illustrated in Figure 1.2. Which combination of air
conditioners and snowmobiles is unattainable?
Choose one answer.
a. 200 air conditioners and 700 snowmobiles
b. 400 air conditioners and 500 snowmobiles
c. 600 air conditioners and 300 snowmobiles
d. More than one combination is unattainable
Question 22
Factors of production are the _________.
Choose one answer.
a. resources used to produce goods and services
b. processes used to produce goods and services
c. places where goods and services are produced
d. tradeoffs involved in producing goods and services
13. Question 23
A monopoly is defined as an industry where a firm is
_________.
Choose one answer.
a. one of a small number of firms and there is a barrier to entry
b. one of a large number of firms and there is a barrier to entry
c. one of a large number of firms and there are no barriers to
entry
d. the single seller of a good and there is a barrier to entry
Question 24
Why does the fact that something is scarce require that we make
choices? Explain what is meant by the opportunity cost of a
choice.
Answer:
Question 25
The opportunity cost of going to college _________.
Choose one answer.
a. is zero if your parents pay your tuition
b. is equal to the cost of tuition, room and board, and other
expenses
14. c. includes wages you lose by going to school instead of
working
d. is the same for all students at a particular school who pay full
tuition
Question 26
When consumers are willing to buy more than producers are
willing to sell _________.
Choose one answer.
a. there is excess supply of the product in the market
b. there is excess demand for the product in the market
c. the market is in equilibrium
d. the demand curve will shift until the quantity supplied equals
the quantity demanded
Question 27
Economics is best defined as the study of _________.
Choose one answer.
a. financial decision-making
b. how consumers make purchasing decisions
15. c. choices made by people faced with scarcity
d. inflation, unemployment and economic growth
Question 28
The opportunity cost of something is _________.
Choose one answer.
a. the cost of the labor used to produce it
b. the best alternative you sacrifice to get it
c. the price charged for it
d. the search cost required to find it
Question 29
A market failure is when markets do not bring about profit
maximization.
Answer:
True False
Question 30
Which of the following goods or services are public? Which are
private?
Libraries
16. National defense
Fire protection
pepperoni pizza
cable television
designer shoes
Question 31
Match the key terms and definitions.
a situation in which there are too few resources to meet all
human wants
the value of the best alternative opportunity forgone
a model that shows the various combinations of two goods the
economy is capable of producing
a model of the economy that depicts how the flow of money
facilitates a counter flow of resources, goods, and services in
the input and output markets
the ability to produce a good at a lower opportunity cost (other
goods forgone) than other could do
17. the ability to produce a good with fewer resources than other
producers
Question 32
Use the graph below to match the questions.
At a price of $1.50 per dozen, how many bagels are demanded
per month?
At a price of $1.50 per dozen, how many bagels are supplied per
month?
At a price of $3.00 per dozen, how many bagels are demanded
per month?
At a price of $3.00 per dozen, how many bagels are supplied per
month?
What is the equilibrium price of bagels?
What is the equilibrium quantity per month?
Question 33
A market served by only one firm is called a _________.
Choose one answer.
18. a. perfectly competitive market
b. monopoly
c. oligopoly
d. Any of the above could be correct
Question 34
Resources are _________.
Choose one answer.
a. produced only by firms
b. unlimited
c. used to produce goods and services
d. only provided by nature, not made by human beings
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Attempt 1Week 3 Activity 1: Midterm Exam
Question 1
Marks: --/8
In general, what is a price index? What questions does it help
answer?
24. Answer:
Question 2
Marks: --/1
For the perfectly competitive firm, price equals marginal
revenue because _________.
Choose one answer.
a. when another unit of the
good is sold, total revenue increases by the price of the
good b. when another unit of the
good is sold, total revenue decreases by the price of the
good c. when another unit of the
good is sold, total revenue increases by less than the price
of the good
d. when another unit of the
good is sold, total revenue increases by more than the price
25. Question 3
Marks: --/1
The law of supply states that _________.
Choose one answer.
a. firms supply more of a
product as consumer income rises b. firms supply more of a
product as consumer income falls c. firms supply more of a
product as the price of the product rises d. firms supply
more of a
product as the price of the product falls
Question 4
Marks: --/1
26. The price elasticity of demand is calculated by
_________.
Choose one answer.
a. the change in price
divided by the change in quantity demanded b. the change
in quantity
demanded divided by the change in price c. the percentage
change in
price divided by the percentage change in quantity
demanded d. the percentage change in
quantity demanded divided by the percentage change in
price
Question 5
Marks: --/1
Scarcity can best be defined as a situation in
which _________.
Choose one answer.
a. there are no buyers
willing to purchase what sellers have produced b. there are
27. not enough goods
to satisfy all of the buyers’ demand c. resources are limited
in
quantity and can be used in different ways d. there is not
enough money
to satisfy consumers’ wants
Question 6
Marks: --/7
Match the description to the right curve.
is cost that varies with the level of output Choose...
Total
variable cost (TVC)
Marginal cost
(MC)
Average fixed cost (AFC)
Total cost (TC)
Average total cost (ATC)
Average Variable Cost (AVC)
Total fixed cost (TFC)
is cost that does not vary with output Choose...
Total
variable cost (TVC)
28. Marginal cost
(MC)
Average fixed cost (AFC)
Total cost (TC)
Average total cost (ATC)
Average Variable Cost (AVC)
Total fixed cost (TFC)
is the sum of total variable cost and total fixed cost
Choose...
Total
variable cost (TVC)
Marginal cost
(MC)
Average fixed cost (AFC)
Total cost (TC)
Average total cost (ATC)
Average Variable Cost (AVC)
Total fixed cost (TFC)
shows the additional cost of each additional unit of
output a firm produces Choose...
Total
variable cost (TVC)
Marginal cost
(MC)
Average fixed cost (AFC)
Total cost (TC)
Average total cost (ATC)
Average Variable Cost (AVC)
Total fixed cost (TFC)
is total cost divided by quantity. Choose...
Total
variable cost (TVC)
Marginal cost
29. (MC)
Average fixed cost (AFC)
Total cost (TC)
Average total cost (ATC)
Average Variable Cost (AVC)
Total fixed cost (TFC)
is the firm’s variable cost per unit of output; it is
total variable cost divided by quantity Choose...
Total
variable cost (TVC)
Marginal cost
(MC)
Average fixed cost (AFC)
Total cost (TC)
Average total cost (ATC)
Average Variable Cost (AVC)
Total fixed cost (TFC)
which is total fixed cost divided by quantity Choose...
Total
variable cost (TVC)
Marginal cost
(MC)
Average fixed cost (AFC)
Total cost (TC)
Average total cost (ATC)
Average Variable Cost (AVC)
Total fixed cost (TFC)
30. Question 7
Marks: --/8
State the essential difference between the classical and
Keynesian schools of thought. If you were a public policymaker
and received
conflicting advice from a classical and a Keynesian economist,
how would you
choose? Explain.
Answer:
Question 8
Marks: --/1
In the short-run, ______ factors of production are fixed, while
in the long-run, _____ of them are.
31. Choose one answer.
a. some, none b. all, none c. no, at least some
d. all, at least some
Question 9
Marks: --/1
When economists say a market has "barriers to
entry" they refer to _________.
Choose one answer.
a. monopolists being
prohibited from selling their products to certain customers
b. a policy that some
countries establish to reduce imports from other countries c.
factors that prevent other
firms from challenging a firm with monopoly power d.
economic profits that are
positive, but too high to encourage entry
32. Question 10
Marks: --/4
Match each example with the right market form.
Local residential electric power Choose...
monopolistic
competition
perfect
competition
monopoly
oligopoly
soft drinks Choose...
monopolistic
competition
perfect
competition
monopoly
oligopoly
long-distance service Choose...
monopolistic
competition
perfect
competition
monopoly
oligopoly
34. measures the difference between total revenue received
by firms at a given quantity of output and the total cost of
producing it
Choose...
common
property resources
free riders
market power
Consumer surplus
market
failure
producer
surplus
are resources for which no property rights have been
defined Choose...
common
property resources
free riders
market power
Consumer surplus
market
failure
producer
surplus
is the ability to change the market price Choose...
common
property resources
free riders
market power
Consumer surplus
market
failure
producer
35. surplus
is the failure of private decision in the marketplace
to achieve an efficient allocation of scarce resources
Choose...
common
property resources
free riders
market power
Consumer surplus
market
failure
producer
surplus
is the amount by which the total benefits to consumers
from consuming a good exceed their total expenditures on
the good Choose...
common
property resources
free riders
market power
Consumer surplus
market
failure
producer
surplus
36. Question 12
Marks: --/1
In the long-run _________.
Choose one answer.
a. all factors of production
are fixed b. all factors of production
are variable c. some factors of production
are variable, while at least one factor of production is fixed
d. at least one factor of
production are fixed, and at least two factors of production
are variable
Question 13
Marks: --/1
In the short-run _________.
Choose one answer.
37. a. all factors of production
are fixed b. all factors of production
are variable c. some factors of production
are variable, while at least one factor of production is fixed
d. No factors of production
are fixed, and at least two factors of production are variable
Question 14
Marks: --/1
A supply curve is defined as the relationship between
_________.
Choose one answer.
a. the price of a good and
the quantity that consumers are willing to buy b. the price
of a good and
the quantity that producers are willing to sell c. the income
of consumers
and the quantity of a product that consumers are willing to
buy
d. the income of consumers
and the quantity of a product that producers are willing to
sell
38. Question 15
Marks: --/1
If the price elasticity of demand is 1, demand is
_________.
Choose one answer.
a. upward sloping b. inelastic c. unitary elastic
d. elastic
Question 16
Marks: --/1
A demand curve is defined as the relationship between
39. _________.
Choose one answer.
a. the price of a good and
the quantity of that good that consumers are willing to buy
b. the price of a good and
the quantity of that good that producers are willing to sell c.
the income of consumers
and the quantity of a good that consumers are willing to buy
d. the income of consumers
and the quantity of a good that producers are willing to sell
Question 17
Marks: --/3
What is the rule of profit maximization?
Choose one answer.
a. Produce where MR = MC
b. Produce where MR > MC
c. Produce where MR < MC
d. Produce where TR > TC
40. Question 18
Marks: --/8
Suppose the marginal benefit of an activity exceeds the
marginal cost. What does the marginal decision rule say a
maximizing decision
maker will do?
Answer:
Question 19
Marks: --/1
A firm will not shut down in the short-run as long as
41. _________.
Choose one answer.
a. price exceeds average
fixed cost at the level of output where marginal revenue
equals marginal
cost b. price exceeds average
variable cost at the level of output where marginal revenue
equals
marginal cost c. price exceeds marginal
cost at the level of output where marginal revenue equals
marginal cost
d. price exceeds total
revenue at the level of output where marginal revenue
equals marginal
Question 20
Marks: --/8
Describe the concept of the invisible hand.
Answer:
42. Question 21
Marks: --/1
Sotoland is a small
country that produces two types of products, air conditioners,
and snowmobiles.
Its production possibilities frontier is illustrated in Figure 1.2.
Which
combination of air conditioners and snowmobiles is
unattainable?
Choose one answer.
a. 200 air conditioners and
700 snowmobiles b. 400 air conditioners and
500 snowmobiles c. 600 air conditioners and
300 snowmobiles d. More than one combination
is unattainable
43. Question 22
Marks: --/1
Factors of production are the _________.
Choose one answer.
a. resources used to produce
goods and services b. processes used to produce
goods and services c. places where goods and
services are produced d. tradeoffs involved in
producing goods and services
Question 23
Marks: --/1
A monopoly is defined as an industry where a firm
is _________.
44. Choose one answer.
a. one of a small number of
firms and there is a barrier to entry b. one of a large number
of
firms and there is a barrier to entry c. one of a large number
of
firms and there are no barriers to entry d. the single seller
of a
good and there is a barrier to entry
Question 24
Marks: --/8
Why does the fact that something is scarce require that we make
choices? Explain what is meant by the opportunity cost of a
choice.
Answer:
45. Question 25
Marks: --/1
The opportunity cost of going to college
_________.
Choose one answer.
a. is zero if your parents
pay your tuition b. is equal to the cost of
tuition, room and board, and other expenses c. includes
wages you lose by
going to school instead of working d. is the same for all
students at a particular school who pay full tuition
Question 26
Marks: --/1
When consumers are willing to buy more than producers are
willing to sell _________.
46. Choose one answer.
a. there is excess supply of
the product in the market b. there is excess demand for
the product in the market c. the market is in
equilibrium d. the demand curve will
shift until the quantity supplied equals the quantity
demanded
Question 27
Marks: --/1
Economics is best defined as the study of
_________.
Choose one answer.
a. financial decision-making
b. how consumers make
purchasing decisions c. choices made by people
faced with scarcity d. inflation, unemployment
and economic growth
47. Question 28
Marks: --/1
The opportunity cost of something is
_________.
Choose one answer.
a. the cost of the labor used
to produce it b. the best alternative you
sacrifice to get it c. the price charged for it
d. the search cost required
to find it
Question 29
Marks: --/1
A market failure is when markets do not bring about profit
maximization.
48. Answer:
True
False
Question 30
Marks: --/6
Which of the following goods or
services are public? Which are private?Libraries Choose...
private
public
National defense Choose...
private
public
Fire protection Choose...
private
public
pepperoni pizza Choose...
49. private
public
cable television Choose...
private
public
designer shoes Choose...
private
public
Question 31
Marks: --/6
Match the key terms and definitions.
a situation in which there are too few resources to
meet all human wants Choose...
scarcity
absolute
advantages
comparative
advantages
Circular flow
50. Production Possibilities Frontier
opportunity cost
the value of the best alternative opportunity forgone
Choose...
scarcity
absolute
advantages
comparative
advantages
Circular flow
Production Possibilities Frontier
opportunity cost
a model that shows the various combinations of two
goods the economy is capable of producing Choose...
scarcity
absolute
advantages
comparative
advantages
Circular flow
Production Possibilities Frontier
opportunity cost
a model of the economy that depicts how the flow of
money facilitates a counter flow of resources, goods, and
services in the
input and output markets Choose...
scarcity
absolute
advantages
comparative
advantages
Circular flow
Production Possibilities Frontier
51. opportunity cost
the ability to produce a good at a lower opportunity
cost (other goods forgone) than other could do Choose...
scarcity
absolute
advantages
comparative
advantages
Circular flow
Production Possibilities Frontier
opportunity cost
the ability to produce a good with fewer resources
than other producers Choose...
scarcity
absolute
advantages
comparative
advantages
Circular flow
Production Possibilities Frontier
opportunity cost
Question 32
Marks: --/6
52. Use the graph below to match the questions.
At a price of $1.50 per dozen, how many bagels are
demanded per month? Choose...
6
8
4
12
10
2.50
At a price of $1.50 per dozen, how many bagels are
supplied per month? Choose...
6
8
4
12
10
2.50
At a price of $3.00 per dozen, how many bagels are
demanded per month? Choose...
6
8
4
12
10
2.50
At a price of $3.00 per dozen, how many bagels are
supplied per month? Choose...
6
8
4
12
53. 10
2.50
What is the equilibrium price of bagels? Choose...
6
8
4
12
10
2.50
What is the equilibrium quantity per month? Choose...
6
8
4
12
10
2.50
Question 33
Marks: --/1
A market served by only one firm is called a
_________.
54. Choose one answer.
a. perfectly competitive
market b. monopoly c. oligopoly d. Any of the above could
be
correct
Question 34
Marks: --/1
Resources are _________.
Choose one answer.
a. produced only by firms
b. unlimited c. used to produce goods and
services d. only provided by nature,
not made by human beings
You are logged in as Daisy
Camacho (Logout)
SOC101_FEB13
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