ACC498 Module 3 ECO Quiz 2017 (All Correct)

QuestionQuestion 1Which one of the following is not a characteristic of public goods?Question 1 options:They are indivisible.Public goods can be used by increasing numbers of people at no additional cost.It is difficult to charge people on the basis of how much they use.Public goods are subject to the principle of rival consumption.Question 2The part of the Federal Reserve System that determines monetary policy actions is the:Question 2 options:Federal Open Market Committee.District Bank Board.Federal Deposit Insurance Corporation (FDIC).Comptroller's Office.Question 3In a free market, the market price and quantity in the below figure will adjust to equilibrium values of:Question 3 options:$2 per gallon and 60 million gallons.$4 per gallon and 10 million gallons.$2 per gallon and 30 million gallons.$1 per gallon and 50 million gallons.Question 4All of the following explain the downward slope of the aggregate demand curve except:Question 4 options:changes in the stock of real wealth held by individuals.the presence of unused production capacity and unemployment.the availability of foreign substitute goods.the effect of changing interest rates on the quantity demanded of interest-rate-sensitive goods.Question 5If one's demand for peanut butter decreases as income rises, the income elasticity of demand for the product is:Question 5 options:negative.elastic.unit elastic.inelastic.Question 6If we add successive laborers to work a given amount of land on a wheat farm, eventually:Question 6 options:the increases in wheat harvested will get larger and larger.average total cost will fall to zero.the increases in wheat harvested will rise at a constant rate.the increases in wheat harvested will get smaller and smaller.Question 7Other things being equal, a higher price inducesQuestion 7 options:buyers to increase the amount they want to buy and sellers to increase the amount they are willing to sell.buyers to increase the amount they want to buy and sellers to reduce the amount they are willing to sell.buyers to reduce the amount they want to buy and sellers to increase the amount they are willing to sell.buyers to reduce the amount they want to buy and sellers to reduce the amount they are willing to sell.Question 8A monopolistically competitive firm differs from a perfectly competitive firm in the long run in that:Question 8 options:profits are positive for a monopolistically competitive firm and zero for a perfectly competitive firm.marginal cost equals the market price for a monopolistically competitive firm but not for a perfectly competitive firm.profits are zero for a monopolistically competitive firm and positive for a perfectly competitive firm.the demand curve faced by a monopolistically competitive firm is downward sloping, while the demand curve faced by a perfectly competitive firm is horizontal.Question 9In the below table, the balance on the current account for Country X is __________ billion dollars.Question 9 options:-150+75-85-200Question 10The production possibilities curve bows outward because:Question 10 options:resources are of uniform quality.opportunity costs are decreasing as the production of a good increases.opportunity costs are fixed as the production of a good increases.opportunity costs are increasing as the production of a good increases.Question 11Stephanie has decided to eat lunch between classes. She has ranked her choices, from highest to lowest as, 1) turkey sandwich, 2) tuna sandwich, 3) slice of cheese pizza, 4) cheeseburger. The opportunity cost of the eating turkey sandwich is:Question 11 options:the value of the cheeseburger.zero, since she has satisfied a want.the value of tuna sandwich, the next best choice.the combined value of the tuna sandwich, slice of cheese pizza, and cheeseburger.Question 12A basic distinction between the long run and the short run is that:Question 12 options:if a firm produces no output in the long run, it still incurs a cost.in the long run, some inputs are fixed, while in the short run, all inputs are variable.in the short run, complete adjustment of all inputs is impossible, while in the long run all inputs can be adjusted.the opportunity costs of production are lower in the short run than in the long run.Question 13When one uses the expenditure approach to calculate Gross Domestic Product (GDP), which of the following would be included?Question 13 options:Household purchases of servicesAll of the abovePrivate business investmentGovernment spending at the local, state, and federal levelsQuestion 14Economic growth causes the:Question 14 options:production possibilities curve to shift leftward and the long-run aggregate supply curve to shift leftward.production possibilities curve to shift rightward and the long-run aggregate supply curve to shiftleftward.production possibilities curve to shift rightward and the long-run aggregate supply curve to shiftrightward.production possibilities curve to shift leftward and the long-run aggregate supply curve to shiftrightward.Question 15The profit-maximizing price and quantity established by the unregulated monopolist in the above figure are:Question 15 options:Q4 units of output and a price of P4.Q1 units of output and a price of P1.Q3 units of output and a price of P3.Q1 units of output and a price of P5.Question 16Microeconomics is the study of:Question 16 options:the effect that money has in the economic system.how rising prices affect the level of employment in the economy.the behavior of the economy as a whole.how individuals and firms make decisions.Question 17Strategic behavior and game theory are features of which market structure?Question 17 options:OligopolyMonopolyMonopolistic competitionPerfect competitionQuestion 18In a market system, __________ provide signals about whether resources are relatively scarce or abundant.Question 18 options:government officialsscientists and engineerspriceseconomistsQuestion 19Which one of the following statements is false?Question 19 options:ATC = AFC + AVCMC = TC divided by QAFC = TFC divided by QTC = TFC + TVCQuestion 20On a hot summer day, a construction worker enters a McDonald's fast-food restaurant. He orders the first Big Mac. He consumes it within 3 minutes. He then orders a second Big Mac and consumes it in 10 minutes. He eats only half of the third one in 18 minutes and throws away the rest. The store manager offers him the fourth for free. The construction worker says: "No thanks." Why?Question 20 options:Marginal utility increased at an increasing rate.The law of diminishing marginal utility does not apply to consumption of Big Macs.For the construction worker, total utility increased at an increasing rate.Marginal utility declined as he consumed additional Big Macs.