? 1,Which of the following best explains why wages
in service industries have increased along with
wages in manufacturing industries,even though
service industry productivity has not increased as
much? Because
a,the opportunity cost of working in the service
industry is the wage in the manufacturing industry.
b,the opportunity cost of working in the manufacturing
industry is the wage in the service industry.
c,the service and manufacturing industry are
complements.
d,working in the service industry yields much more
utility.
e,MC > MB for service industry workers.
2,A firm's profit is equal to which of the
following?
a,the value of its sales
b,marginal revenue minus marginal cost
c,total sales minus wages
d,total revenue minus total cost
e,none of the above
3,Which of the following is not a
characteristic of a perfectly competitive
firm?
a,perfectly elastic demand curve
b,price taker
c,control over market price
d,many sellers
e,all of the above are characteristics of
perfectly competitive firms
4,Which of the following can a firm
vary in the long-run?
a,no factors of production
b,all factors of production
c,all but one factor of production
d,only one factor of production
e,more information about the firm is
needed to answer this question
5,When the quantity of an input can be
altered in the short-run,the input is
a,fixed.
b,variable.
c,implicit.
d,explicit.
e,efficient.
6,A perfectly competitive firm will
maximize profit when
a,total revenue exceeds total cost.
b,marginal revenue exceeds marginal cost.
c,price equals marginal cost.
d,price equals marginal benefit.
e,marginal benefit exceeds marginal
cost.
7,A firm will shut down when
a,it is not earning a profit.
b,price does not equal marginal cost.
c,price is less than average cost.
d,revenue is less than variable costs.
e,revenue is less than total costs.
8,An increase in supply could be caused
bywhich of the following?
a,an improvement in technology
b,an increase in input prices
c,an increase in income
d,an increase in the price of the product
e,a decrease in the number of suppliers
9,The difference between the price a
seller receives and her marginal cost is
known as
a,profit.
b,marginal revenue.
c,average fixed cost.
d,producer surplus
e,excess supply.
10,The difference between a firm’s average
total cost and its average variable cost is its
a,profit.
b,marginal revenue.
c,average fixed cost.
d,producer surplus
e,excess supply.
in service industries have increased along with
wages in manufacturing industries,even though
service industry productivity has not increased as
much? Because
a,the opportunity cost of working in the service
industry is the wage in the manufacturing industry.
b,the opportunity cost of working in the manufacturing
industry is the wage in the service industry.
c,the service and manufacturing industry are
complements.
d,working in the service industry yields much more
utility.
e,MC > MB for service industry workers.
2,A firm's profit is equal to which of the
following?
a,the value of its sales
b,marginal revenue minus marginal cost
c,total sales minus wages
d,total revenue minus total cost
e,none of the above
3,Which of the following is not a
characteristic of a perfectly competitive
firm?
a,perfectly elastic demand curve
b,price taker
c,control over market price
d,many sellers
e,all of the above are characteristics of
perfectly competitive firms
4,Which of the following can a firm
vary in the long-run?
a,no factors of production
b,all factors of production
c,all but one factor of production
d,only one factor of production
e,more information about the firm is
needed to answer this question
5,When the quantity of an input can be
altered in the short-run,the input is
a,fixed.
b,variable.
c,implicit.
d,explicit.
e,efficient.
6,A perfectly competitive firm will
maximize profit when
a,total revenue exceeds total cost.
b,marginal revenue exceeds marginal cost.
c,price equals marginal cost.
d,price equals marginal benefit.
e,marginal benefit exceeds marginal
cost.
7,A firm will shut down when
a,it is not earning a profit.
b,price does not equal marginal cost.
c,price is less than average cost.
d,revenue is less than variable costs.
e,revenue is less than total costs.
8,An increase in supply could be caused
bywhich of the following?
a,an improvement in technology
b,an increase in input prices
c,an increase in income
d,an increase in the price of the product
e,a decrease in the number of suppliers
9,The difference between the price a
seller receives and her marginal cost is
known as
a,profit.
b,marginal revenue.
c,average fixed cost.
d,producer surplus
e,excess supply.
10,The difference between a firm’s average
total cost and its average variable cost is its
a,profit.
b,marginal revenue.
c,average fixed cost.
d,producer surplus
e,excess supply.
