ashworth college C13V full course

ashworth college C13V online exam 1 latest 2015 jan.

Part 1 of 1 – 85.0/ 100.0 Points

Question 1 of 20

5.0/ 5.0 Points

Steven lives in a big city where there is a shortage of parking. He has a parking spot in his driveway where he parks his car. Which of the following statements is most correct?

A. Steven has a lower opportunity cost of owning a car than his neighbor, who must rent a parking spot.

B. The opportunity cost of using the spot is zero, because Steven owns the house.

C. The opportunity cost of using the parking spot is the price he could charge someone else for using the spot.

D. The opportunity cost depends on how much Steven’s mortgage payment is.

Question 2 of 20

5.0/ 5.0 Points

Which of the following is a question answered with normative economic reasoning?

A. If the college offers free textbooks for students, will more students read their textbooks?

B. If the college provided less financial aid for out-of-state students, would more in-state students benefit?

C. If the college increased its enrollment requirements, would class size decline?

D. Should the college increase tuition to fund its athletic programs?

Question 3 of 20

0.0/ 5.0 Points

Jacinda quit her job as a blackjack dealer where she made $42,000 per year to start her own florist business. Her business expenses are $14,000 per year on rent, $21,000 per year on supplies, and $9,000 per year on part-time help. As for her personal expenses, her apartment costs her $12,000 per year and her personal bills are an extra $6,000 per year. What is Jacinda’s opportunity cost of running the business?

A. $104,000

B. $86,000

C. $62,000

D. $44,000

Question 4 of 20

5.0/ 5.0 Points

Which of the following is an example of a normative question?

A. How will an increase in the inheritance tax affect tax revenues?

B. What fraction of an income tax cut will be spent on imported goods?

C. Should Florida implement a state income tax to reduce its deficit?

D. How will an increase in unemployment benefits affect the unemployment rate?

Question 5 of 20

5.0/ 5.0 Points

Resources are all of the following EXCEPT __________ .

A. unlimited and in abundance

B. the things we use to produce goods and services

C. limited in quantity and can be used in different ways

D. scarce and therefore require choices to be made

Question 6 of 20

5.0/ 5.0 Points

The principle that the cost of something is equal to what is sacrificed to get it is known as the __________ .

A. marginal principle

B. principle of opportunity cost

C. principle of diminishing returns

D. reality principle

Question 7 of 20

5.0/ 5.0 Points

The effort used to coordinate the factors of production is a description of __________ .

A. physical capital

B. human capital

C. labor

D. entrepreneurship

Question 8 of 20

0.0/ 5.0 Points

?Angelina, age seven, decides to dress up like Princess Fiona for Halloween. What is the opportunity cost of her decision?

A. the cost of the costume

B. the fact that she can’t dress up like Dora the Explorer, her second choice

C. zero, because seven-year-olds don’t have opportunity costs

D. the cost of the Lady Gaga costume which she did not want

Question 9 of 20

5.0/ 5.0 Points

Tradeoff is __________ .

A. allowing the government and other organizations to choose for us

B. sacrificing one thing for another

C. deciding who consumes the products produced in an economy

D. holding other variables fixed

Question 10 of 20

5.0/ 5.0 Points

The saying that “There’s no such thing as a free lunch” refers to the __________ .

A. marginal principle

B. spillover principle

C. principle of opportunity cost

D. reality principle

Question 11 of 20

5.0/ 5.0 Points

The knowledge and skills acquired by a worker through education and experience is a description of which factor of production?

A. physical capital

B. human capital

C. labor

D. entrepreneurship

Question 12 of 20

5.0/ 5.0 Points

You rent a DVD of The Dark Knight Rises. The rental is for seven days and you watch the movie on the first day. You tell a friend about the film and your friend asks to come over and watch the movie with you before it is due back. What is your opportunity cost if you decide to watch the movie a second time instead of going to a football game?

A. the entire cost of the movie rental, since you have already watched the movie

B. one half the rental cost, because you have already watched the movie one time

C. The answer depends on how much you liked the movie in the first place.

D. the football game you forego by watching the movie again

Question 13 of 20

5.0/ 5.0 Points

Which of the following is a question answered with positive economic analysis?

A. Should the college reduce tuition for out-of-state residents?

B. Should the college charge higher tuition for part-time students?

C. If the college increased its eligibility requirements for enrollment, will class sizes decline?

D. Should the college eliminate its athletic program to cut its costs?

Question 14 of 20

5.0/ 5.0 Points

The opportunity cost of going to college __________ .

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 15 of 20

5.0/ 5.0 Points

Normative economics __________ .

A. is the focus of most modern economic reasoning

B. answers the question “What ought to be?”

C. predicts the consequences of alternative actions

D. answers the question “What is?”

Question 16 of 20

5.0/ 5.0 Points

An arrangement that allows buyers and sellers to exchange things is called __________ .

A. a contract

B. a market

C. money

D. efficient

Question 17 of 20

5.0/ 5.0 Points

Because resources are limited, __________ .

A. only the very wealthy can get everything they want

B. firms will be forced out of business

C. the availability of goods will be limited but the availability of services will not

D. people must make choices

Question 18 of 20

5.0/ 5.0 Points

All of the following are considered natural resources EXCEPT __________ .

A. a coral reef

B. gold

C. labor

D. a redwood forest

Question 19 of 20

0.0/ 5.0 Points

Suppose that your tuition to attend college is $24,000 per year and you spend $8,000 per year on room and board. If you were working full time, you could earn $30,000 per year. What is your opportunity cost of attending college for one year?

A. $32,000

B. $38,000

C. $54,000

D. $62,000

Question 20 of 20

5.0/ 5.0 Points

The principle of opportunity cost __________ .

A. is more relevant for firms than for individuals

B. only refers to monetary payments

C. is only relevant in economics

D. is applicable to all decision-making

ashworth college C13V online exam 2 latest 2015 jan.

Part 1 of 1 – 75.0/ 100.0 Points

Question 1 of 20

5.0/ 5.0 Points

The market demand curve __________ .

A. shows the relationship between the price of a good and the quantity that all consumers together are willing to buy

B. is drawn assuming that variables such as income and tastes are variable

C. is drawn assuming that the number of consumers is variable

D. is drawn assuming that the selling price is fixed

Question 2 of 20

5.0/ 5.0 Points

When demand increases and the demand curve shifts to the right, equilibrium price __________ and equilibrium quantity __________ .

A. increases; increases

B. increases; decreases

C. decreases; increases

D. decreases; decreases

Question 3 of 20

5.0/ 5.0 Points

?The midpoint formula for elasticity of demand solves the problem of __________ .

A. whether elasticity of demand is really positive or negative

B. whether to use quantity or price in the numerator

C. which price or quantity to use as the initial value of the variable

D. whether to use quantity demanded or supplied

Question 4 of 20

5.0/ 5.0 Points

?Suppose that in a month the price of oranges increases from $.75 to $1. At the same time, the quantity of oranges demanded decreases from 100 to 80. The price elasticity of demand for oranges (calculated using the initial value formula) is __________ .

A. 0.75

B. 0.6

C. 0.25

D. 20

Question 5 of 20

0.0/ 5.0 Points

The price of apples increases from $1 to $1.10. At the same time, the quantity of apples demanded decreases from 100 to 90. The price elasticity of demand for apples (calculated using the initial value formula) is __________ .

A. 0.02

B. 0.9

C. 1

D. 1.1

Question 6 of 20

5.0/ 5.0 Points

The Law of Demand can be explained as __________ .

A. a lot of people wanting the same thing

B. the higher the price, the smaller the quantity demanded, ceteris paribus

C. people willing to make limited sacrifices to acquire products

D. legal reasons people make purchases in the marketplace

Question 7 of 20

0.0/ 5.0 Points

The ratio of the percentage change in quantity demanded to the percentage change in price is known as the __________ .

A. demand-side shift factor

B. income elasticity of demand

C. price elasticity of demand

D. cross elasticity of demand

Question 8 of 20

5.0/ 5.0 Points

When there is a change in the quantity demanded it means that __________ .

A. the hours the customer can buy products each day have increased

B. the number of products in inventory have increased

C. the quantity a consumer is willing to buy changes when the price changes

D. the selling price of the products has not changed

Question 9 of 20

5.0/ 5.0 Points

Suppose that there are only three consumers of a product. At a price of $6 per unit, the first consumer would buy 12 units of the product, the second consumer would buy 8 units, and the third consumer would buy 3 units of the product. If you drew a market demand curve for this product, the quantity demanded at a price of $6 would be __________ .

A. 23 units

B. 20 units

C. 12 units

D. 11 units

Question 10 of 20

0.0/ 5.0 Points

The price elasticity of demand is calculated by __________ .

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 11 of 20

5.0/ 5.0 Points

If a competitive market operates perfectly, it relies on __________ .

A. the number of people buying goods

B. the laws of supply and demand

C. how many products can be produced for sale

D. how much people are willing to pay for the products

Question 12 of 20

0.0/ 5.0 Points

The quantity demanded of a product increases as __________ .

A. consumer income rises

B. the prices of other products fall

C. the price of the product rises

D. the price of the product falls

Question 13 of 20

0.0/ 5.0 Points

When supply increases and the supply curve shifts to the right, equilibrium price __________ and equilibrium quantity __________ .

A. increases; increases

B. increases; decreases

C. decreases; increases

D. decreases; decreases

Question 14 of 20

5.0/ 5.0 Points

The quantity of TVs sold is 100 at the unit price $200. Suppose the price elasticity of demand for TVs by the initial value method is 2.0, and you would like to decrease the unit price for TVs to $150. Then the new quantity sold must be __________ .

A. 125

B. 150

C. 200

D. 250

Question 15 of 20

5.0/ 5.0 Points

Suppose that in a month the price of a gallon of milk increases from $2 to $2.50. At the same time, the quantity of gallons of milk demanded decreases from 100 to 80. The price elasticity of demand for gallons of milk (calculated using the midpoint formula) is approximately __________ .

A. 0.11

B. 0.2

C. 1

D. 1.2

Question 16 of 20

5.0/ 5.0 Points

The quantity of pencils sold is 1000 at the unit price $0.5. Suppose the price elasticity of demand for pencils by the initial value method is 2, and you would like to increase the quantity sold to 1200. Then the new price for pencils must be __________ .

A. $0.05

B. $0.25

C. $0.30

D. $0.45

Question 17 of 20

5.0/ 5.0 Points

Suppose that in a month the price of tulips increases from $1 to $1.50. At the same time, the quantity of tulips demanded decreases from 200 to 190. The price elasticity of demand for tulips (calculated using the initial value formula) is __________ .

A. 0.1

B. 0.5

C. 10

D. 20

Question 18 of 20

5.0/ 5.0 Points

A change in the quantity demanded of a product is the result of a change in __________ .

A. the price of the product

B. the price of related goods

C. consumer income

D. the cost of producing the product

Question 19 of 20

5.0/ 5.0 Points

The price elasticity of demand reflects the responsiveness of __________ .

A. firms to changes in demand

B. demand to a change in price of a substitute good

C. demand to a change in price

D. quantity demanded to a change in price

Question 20 of 20

5.0/ 5.0 Points

In considering the relationships between price and quantity demanded, ceteris paribus directs the economist to assume that __________ .

A. price increases affect quantity

B. quantity increases affect prices

C. neither price nor quantity affect demand

D. all other variables remain unchanged

ashworth college C13V online exam 3 latest 2015 jan.

Part 1 of 1 – 70.0/ 100.0 Points

Question 1 of 20

5.0/ 5.0 Points

Jody’s bakery makes cakes and would be willing to sell each cake for $12.50. If Jody’s bakery sells 10 cakes for $13 each, the total producer surplus for Jody’s bakery would be equal to __________ .

A. $5.00

B. $12.50

C. $125.00

D. $130.00

Question 2 of 20

5.0/ 5.0 Points

Which of the following would result from a quota imposed on the quantity of cars that can be imported into the United States?

A. an increase in the total surplus

B. an increase in producer surplus

C. an increase in prices for consumers

D. an increase in consumer surplus

Question 3 of 20

0.0/ 5.0 Points

If the government sets a minimum price above the equilibrium price for soybeans, which of the following statements will be correct?

A. There will be an efficient level of output produced.

B. There will be excess supply.

C. There will be excess demand.

D. all of the above

Question 4 of 20

0.0/ 5.0 Points

Consumer surplus can be defined as the __________ .

A. value a consumer receives from a good minus the price paid for that good

B. maximum amount the consumer would pay for a good

C. actual amount paid for a good minus the benefit of using that good

D. marginal utility of a good divided by its price

Question 5 of 20

5.0/ 5.0 Points

In the market equilibrium, with a price of $500 there are 2000 apartments. If the government decides to enact a rent control policy, with a maximum price of $400, it reduces the quantity to 1500 apartments. Due to the rent control decreasing the total surplus of the market, the policy generates a(n) __________ .

A. excess supply

B. equilibrium

C. higher price

D. deadweight loss

Question 6 of 20

5.0/ 5.0 Points

You would be willing to pay a maximum of $1,000 for an airplane ticket to London during the summer, and you can buy an airplane ticket for $890. Your consumer surplus is __________ .

A. $90

B. $190

C. $110

D. $100

Question 7 of 20

5.0/ 5.0 Points

Assume that production costs rise and demand remains constant. The equilibrium price will __________ and the producer surplus will __________ .

A. increase; increase

B. increase; decrease

C. decrease; decrease

D. decrease; increase

Question 8 of 20

5.0/ 5.0 Points

The difference between the maximum amount a person is willing to pay for a good and its current market price is known as __________ .

A. the paradox of value

B. profits

C. revealed preferences

D. consumer surplus

Question 9 of 20

5.0/ 5.0 Points

Taxes may cause deadweight losses because __________ .

A. they transfer purchasing power from buyers to the government

B. they lower the surplus in the market

C. they increase consumer surplus at the expense of producer surplus

D. they transfer purchasing power from sellers to the government

Question 10 of 20

5.0/ 5.0 Points

The conclusion that the level of output is efficient at the market equilibrium rests on all of the following assumptions EXCEPT that __________ .

A. buyers and sellers are well-informed

B. there are no external costs or benefits

C. the government regulates price and output

D. the market is perfectly competitive

Question 11 of 20

0.0/ 5.0 Points

At the market equilibrium, resources are allocated efficiently because __________ .

A. the marginal cost of producing another unit is equal to zero

B. the price buyers pay accurately reflects the marginal cost of the resources used to produce the good

C. the price buyers pay is greater than sellers’ willingness to sell

D. all of the above

Question 12 of 20

5.0/ 5.0 Points

?Tom would be willing to pay a maximum of $2,500 to attend the Super Bowl this year, and he can buy a ticket for $2,050. His consumer surplus is __________ .

A. $25

B. $50

C. $275

D. $450

Question 13 of 20

5.0/ 5.0 Points

Assume that linen pants are a normal good and consumer income rises. If the supply of linen pants remains constant, producer surplus __________ .

A. will decrease

B. will increase

C. will remain constant

D. may increase or decrease depending on the amount of the price increase

Question 14 of 20

5.0/ 5.0 Points

If the government imposes a maximum price for milk that is above the equilibrium price __________ .

A. this maximum price for milk will have no economic impact

B. quantity demanded of milk will be less than quantity supplied

C. demand for milk will be greater than supply

D. the available milk supply will have to be rationed

Question 15 of 20

0.0/ 5.0 Points

If the government sets a maximum price for gasoline above the equilibrium price, __________ .

A. quantity demanded of gasoline will be equal to quantity supplied of gasoline

B. there will be excess demand for gasoline

C. there will be excess supply of gasoline

D. demand for gasoline will be less than supply of gasoline

Question 16 of 20

5.0/ 5.0 Points

Producer surplus is equal to __________ .

A. the area under the supply curve

B. the area above the supply curve below the good’s price

C. the area under the supply curve below the good’s price

D. the good’s price times the quantity purchased

Question 17 of 20

5.0/ 5.0 Points

Recall the application about price controls and the candy bars. During World War II, the U.S. government imposed price controls to set maximum prices on all different products, including candy bars. How did the candy bar producers respond to maximum prices?

A. Producers increased the supply of candy bars.

B. Producers shrank the weight of the candy bars.

C. A lot of the producers dropped out of candy bar market.

D. none of the above

Question 18 of 20

5.0/ 5.0 Points

Suppose you receive a consumer surplus of $50. The $50 represents __________ .

A. a monetary payment from the store

B. a monetary payment from the government

C. a reduction in the original price of the good

D. the fact that you paid $50 less than you were willing to pay for the good

Question 19 of 20

0.0/ 5.0 Points

Suppose that you are willing to pay $25 for a new shirt and the market price is $35. In this case __________ .

A. you will not buy the good

B. you will buy the good and receive a consumer surplus of $5

C. you will buy the good and receive a consumer surplus of –$10

D. you will buy the good and receive a consumer surplus of –$35

Question 20 of 20

0.0/ 5.0 Points

At the free market equilibrium, the efficient level of output is produced because __________ .

A. government regulates the output level that must be produced

B. firms are maximizing profit

C. willingness to pay is the same for all consumers

D. total surplus is maximized

ashworth college C13V online exam 5 attempt 1 latest 2015 jan.

Part 1 of 2 – Lesson 4 Questions 37.5/ 50.0 Points

Question 1 of 40

2.5/ 2.5 Points

Chris buys pizza for his football party and he gets to decide who will have a slice of his pizza. This means his pizza is __________ .

A. nonrival and nonexcludable

B. a private good

C. a public good

D. rival, but nonexcludable

Question 2 of 40

2.5/ 2.5 Points

Based on society’s perspective, what are the benefits from pollution abatement?

A. better health

B. increased enjoyment of the natural environment

C. lower production costs

D. all of the above

Question 3 of 40

2.5/ 2.5 Points

Public goods are __________ .

A. rival in consumption and their benefits are excludable

B. nonrival in consumption and their benefits are excludable

C. nonrival in consumption and their benefits are nonexcludable

D. rival in consumption and their benefits are nonexcludable

Question 4 of 40

2.5/ 2.5 Points

Which of the following would NOT be considered a public good?

A. national defense

B. radio broadcasts

C. police protection

D. a newspaper

Question 5 of 40

2.5/ 2.5 Points

Which of the following would be typically classified as?a public good?

A. postal delivery

B. national defense

C. toll roads

D. college education

Question 6 of 40

2.5/ 2.5 Points

Which of the following is an example of an external cost?

A. a loud, crying baby in a public restaurant

B. emissions of methane into the atmosphere

C. a homeowner who likes to mow the lawn at 7 a.m. on Saturday morning

D. all of the above

Question 7 of 40

2.5/ 2.5 Points

Private goods are __________ .

A. rival in consumption and their benefits are excludable

B. nonrival in consumption and their benefits are excludable

C. nonrival in consumption and their benefits are nonexcludable

D. rival in consumption and their benefits are nonexcludable

Question 8 of 40

2.5/ 2.5 Points

Reductions in pollution from a specific starting level of existing pollution is called __________ .

A. abatement

B. the EPA

C. command and control

D. usage tax

Question 9 of 40

0.0/ 2.5 Points

The biggest problem with using a tax as a way to solve an externality problem is that __________ .

A. the tax sometimes increases the external cost

B. damages must be estimated in financial terms to determine the correct level of the tax

C. the firm will pass the entire tax onto the consumer

D. the commerce clause forbids such taxes

Question 10 of 40

0.0/ 2.5 Points

Markets that have external costs will produce __________ output than the socially efficient level, whereas markets that have external benefits will produce __________ output than the socially efficient level.

A. less; less

B. more; more

C. more; less

D. less; more

Question 11 of 40

2.5/ 2.5 Points

A harbor lighthouse that guides approaching ships is an example of __________ .

A. a public good

B. a private good

C. a monopoly

D. a good that is rival

Question 12 of 40

2.5/ 2.5 Points

The study of external costs is a major concern of __________ .

A. labor economics

B. international economics

C. environmental economics

D. macroeconomists

Question 13 of 40

2.5/ 2.5 Points

Sirens located around a town to warn citizens of the approach of a tornado are an example of __________ .

A. an external cost

B. a private good

C. a common resource

D. a public good

Question 14 of 40

2.5/ 2.5 Points

When the government imposes a tax on a firm that generates external costs, the tax is __________ .

A. always borne entirely by the firm

B. always borne entirely by the consumer

C. usually borne by both the firm and the consumer

D. borne only by the government

Question 15 of 40

2.5/ 2.5 Points

Jamal and Lauren live in the countryside 30 minutes from a city in Virginia. They moved there because they wanted to enjoy the fresh air. After a year of living in their house, the 200 acres that surround their neighborhood were zoned for an industrial property. A paper mill was built on the land and now emits strong gases that can be smelled from miles away. The paper mill’s emission of gases is an example of a(n. __________ .

A. public good

B. good that imposes an external cost

C. good that provides an external benefit

D. efficient good

Question 16 of 40

0.0/ 2.5 Points

If, while producing goods and services, a factory is producing pollution and not incurring the cost of this pollution, then a(n) __________ exists.

A. government failure

B. market failure

C. acceptable outcome

D. none of the above

Question 17 of 40

2.5/ 2.5 Points

?If a producer is imposing an external cost on society, the best response would be to __________ .

A. lower the producer’s taxes to offset pollution

B. increase the production

C. internalize the externality

D. subsidize the producer

Question 18 of 40

0.0/ 2.5 Points

When the government taxes a firm that generates an external cost, the profit maximizing firm will produce __________ .

A. more units of output than before the tax was imposed

B. the same number of units of output as before the tax was imposed

C. fewer units of output than before the tax was imposed

D. either more or fewer units of output than before the tax was imposed

Question 19 of 40

2.5/ 2.5 Points

Recall the application about the marginal cost and marginal benefit of reducing methane emissions. What does the optimal level of methane abatement depend on?

A. the level at which the polluting firms are able to maximize their profits

B. the total cost of abatement

C. the marginal benefit of abatement

D. It is not possible to determine an optimal level of methane.

Question 20 of 40

0.0/ 2.5 Points

In the absence of government, an under-allocation of resources generally exists for __________ .

A. goods with external costs

B. imported goods and services

C. public goods

D. all of the above

Part 2 of 2 – Lesson 5 Questions 50.0/ 50.0 Points

Question 21 of 40

2.5/ 2.5 Points

You are the owner and only employee of a company that repairs computers. Last year, you earned total revenues of $75,000. Your costs for equipment, rent, and supplies were $10,000. To start this business you quit a job at another computer software firm that paid $40,000 a year. During the year, your economic costs were __________ .

A. $10,000

B. $40,000

C. $50,000

D. $75,000

Question 22 of 40

2.5/ 2.5 Points

Utility can be thought of as the same as __________ .

A. opportunity cost

B. satisfaction

C. choice

D. none of the above

Question 23 of 40

2.5/ 2.5 Points

Consumers should allocate their scarce income so that __________ .

A. the marginal utility for all goods consumed is zero

B. the marginal utility for all goods consumed is equal

C. the marginal utility divided by price is equal for all goods consumed

D. the marginal utility divided by price is maximized for all goods consumed

Question 24 of 40

2.5/ 2.5 Points

?Marginal utility is the __________ .

A. total amount of satisfaction gained by the consumption of a good or service

B. additional satisfaction gained by the consumption or use of one more unit of something

C. price of a good relative to the prices of other goods and services

D. comparison of utility between two different people

Question 25 of 40

2.5/ 2.5 Points

A firm’s objective is to maximize its economic profit, which is __________ .

A. total revenue minus economic cost

B. total profit minus total cost

C. economic cost minus profit

D. economic cost minus total revenue

Question 26 of 40

2.5/ 2.5 Points

?Which of the following statements about fixed costs is correct?

A. Fixed costs are not opportunity costs.

B. Fixed costs must be paid even if the firm’s output is zero.

C. Fixed costs are always the largest portion of total costs.

D. none of the above

Question 27 of 40

2.5/ 2.5 Points

Mario has a company that produces plastic freezer bags. His company objective is to maximize __________ .

A. his company’s revenues

B. his company’s total out-of-pocket costs

C. his company’s opportunity costs of each factor of production

D. his company’s economic profits, the difference between total revenue and total cost

Question 28 of 40

2.5/ 2.5 Points

Suppose that MUx / Px < MUy / Py . This implies that __________ .

A. spending a dollar less on Y and spending a dollar more on X increases utility

B. spending a dollar less on X and spending a dollar more on Y increases utility

C. X is more expensive than Y

D. Y is more expensive than X

Question 29 of 40

2.5/ 2.5 Points

Dan owns a factory that manufactures smartphones. He has many costs every month to keep his factory running. Which of the following is one of Dan’s fixed costs?

A. plastic used to make the smartphones

B. his electricity bill for the factory

C. his mortgage on the factory

D. memory devices used to store music and video on the smartphones

Question 30 of 40

2.5/ 2.5 Points

?Total economic costs include __________ .

A. a normal rate of return

B. out-of-pocket costs

C. opportunity costs of all inputs

D. all of the above

Question 31 of 40

2.5/ 2.5 Points

The period of time when a firm is unable to change all inputs, or factors of production, is called the __________ .

A. economic term

B. short run

C. accounting term

D. long run

Question 32 of 40

2.5/ 2.5 Points

Juan is consuming three sandwiches and six sodas. If a sandwich costs twice as much as a soda, then __________ .

A. Juan should buy more sodas

B. Juan should buy more sandwiches

C. Juan is maximizing his utility if he derives twice as much utility from the last soda as from the last sandwich

D. Juan is maximizing his utility if he derives twice as much utility from the last sandwich as from the last soda

Question 33 of 40

2.5/ 2.5 Points

The principle of opportunity cost is __________ .

A. what someone sacrifices to get something

B. the satisfaction of obtaining the best next alternative

C. the choice someone has to make between two different goods

D. the cost of paying for something someone needs

Question 34 of 40

2.5/ 2.5 Points

You are the owner and only employee of a company that repairs computers. Last year, you earned total revenues of $75,000. Your costs for equipment, rent, and supplies were $10,000. To start this business you quit a job at another computer software firm that paid $40,000 a year. Last year, your economic profits were __________ .

A. $100,000

B. $75,000

C. $50,000

D. $25,000

Question 35 of 40

2.5/ 2.5 Points

From 1998 to 2010, the cost of electricity produced with nuclear power has __________ and the cost of electricity produced with solar power has __________ .

A. increased; increased

B. increased; decreased

C. decreased; increased

D. decreased; decreased

Question 36 of 40

2.5/ 2.5 Points

The short run can be defined as any period of time __________ .

A. less than one year

B. in which some inputs are fixed

C. in which all inputs are variable

D. in which price is fixed

Question 37 of 40

2.5/ 2.5 Points

If marginal product is negative, then __________ .

A. total product will decrease if more of the input is hired

B. total product is equal to zero

C. marginal product will increase if more of the input is hired

D. average product will increase if more of the input is hired

Question 38 of 40

2.5/ 2.5 Points

The satisfaction experienced from consuming a good or service is referred to as __________ .

A. utility

B. marginal utility

C. the law of diminishing marginal utility

D. all of the above

Question 39 of 40

2.5/ 2.5 Points

As more of any one good is consumed in a given period, its __________ .

A. total utility decreases, then remains constant

B. marginal utility decreases

C. total utility decreases, then increases

D. marginal utility increases

Question 40 of 40

2.5/ 2.5 Points

The budget line shows __________ .

A. the different combinations of two goods that a consumer can buy

B. the quantity of a single good that a consumer is willing to buy at different prices

C. the maximized utility from a good

D. none of the above

ashworth college C13V online exam 5 attempt 2 latest 2015 jan.

Part 1 of 2 – Lesson 4 Questions 27.5/ 50.0 Points

Question 1 of 40

2.5/ 2.5 Points

Reductions in pollution from a specific starting level of existing pollution is called __________ .

A. abatement

B. the EPA

C. command and control

D. usage tax

Question 2 of 40

0.0/ 2.5 Points

Markets that have external costs will produce __________ output than the socially efficient level, whereas markets that have external benefits will produce __________ output than the socially efficient level.

A. less; less

B. more; more

C. more; less

D. less; more

Question 3 of 40

0.0/ 2.5 Points

When the government taxes a firm that generates an external cost, the profit maximizing firm will produce __________ .

A. more units of output than before the tax was imposed

B. the same number of units of output as before the tax was imposed

C. fewer units of output than before the tax was imposed

D. either more or fewer units of output than before the tax was imposed

Question 4 of 40

2.5/ 2.5 Points

Public goods are __________ .

A. rival in consumption and their benefits are excludable

B. nonrival in consumption and their benefits are excludable

C. nonrival in consumption and their benefits are nonexcludable

D. rival in consumption and their benefits are nonexcludable

Question 5 of 40

0.0/ 2.5 Points

If, while producing goods and services, a factory is producing pollution and not incurring the cost of this pollution, then a(n) __________ exists.

A. government failure

B. market failure

C. acceptable outcome

D. none of the above

Question 6 of 40

0.0/ 2.5 Points

The biggest problem with using a tax as a way to solve an externality problem is that __________ .

A. the tax sometimes increases the external cost

B. damages must be estimated in financial terms to determine the correct level of the tax

C. the firm will pass the entire tax onto the consumer

D. the commerce clause forbids such taxes

Question 7 of 40

2.5/ 2.5 Points

An external cost of production is __________ .

A. a cost incurred by someone other than the producer

B. the production cost borne by a producer

C. the result of the sum of private and social cost

D. another word for a tax

Question 8 of 40

0.0/ 2.5 Points

Chris buys pizza for his football party and he gets to decide who will have a slice of his pizza. This means his pizza is __________ .

A. nonrival and nonexcludable

B. a private good

C. a public good

D. rival, but nonexcludable

Question 9 of 40

2.5/ 2.5 Points

A harbor lighthouse that guides approaching ships is an example of __________ .

A. a public good

B. a private good

C. a monopoly

D. a good that is rival

Question 10 of 40

2.5/ 2.5 Points

Which of the following would NOT be considered a public good?

A. national defense

B. radio broadcasts

C. police protection

D. a newspaper

Question 11 of 40

2.5/ 2.5 Points

Private goods are __________ .

A. rival in consumption and their benefits are excludable

B. nonrival in consumption and their benefits are excludable

C. nonrival in consumption and their benefits are nonexcludable

D. rival in consumption and their benefits are nonexcludable

Question 12 of 40

2.5/ 2.5 Points

Recall the application about the marginal cost and marginal benefit of reducing methane emissions. What does the optimal level of methane abatement depend on?

A. the level at which the polluting firms are able to maximize their profits

B. the total cost of abatement

C. the marginal benefit of abatement

D. It is not possible to determine an optimal level of methane.

Question 13 of 40

0.0/ 2.5 Points

Goods that are nonrival in consumption and that have benefits that are nonexcludable are __________ .

A. private goods

B. neighbor effects

C. public goods

D. none of the above

Question 14 of 40

0.0/ 2.5 Points

Which of the following would be an example of an external benefit?

A. More people start to ride the bus and as a result air pollution is reduced.

B. Firms are able to reduce their costs of production by using a more efficient technology.

C. The government requires polluting firms to pay a special tax.

D. A firm has just gotten permission to open a landfill on property that is adjacent to your home.

Question 15 of 40

2.5/ 2.5 Points

Sirens located around a town to warn citizens of the approach of a tornado are an example of __________ .

A. an external cost

B. a private good

C. a common resource

D. a public good

Question 16 of 40

0.0/ 2.5 Points

Which of the following is an example of an external cost?

A. a loud, crying baby in a public restaurant

B. emissions of methane into the atmosphere

C. a homeowner who likes to mow the lawn at 7 a.m. on Saturday morning

D. all of the above

Question 17 of 40

2.5/ 2.5 Points

Based on society’s perspective, what are the benefits from pollution abatement?

A. better health

B. increased enjoyment of the natural environment

C. lower production costs

D. all of the above

Question 18 of 40

2.5/ 2.5 Points

Taxes on a firm’s external costs __________ .

A. are designed to encourage more production

B. are meant to force some firms out of business

C. are simply meant to force decision makers to consider the full costs of their actions

D. are designed primarily as a way to raise money so that the government can compensate the victims of the spillover

Question 19 of 40

0.0/ 2.5 Points

The study of external costs is a major concern of __________ .

A. labor economics

B. international economics

C. environmental economics

D. macroeconomists

Question 20 of 40

2.5/ 2.5 Points

?Which of the following would be typically classified as a public good?

A. postal delivery

B. national defense

C. toll roads

D. college education

Part 2 of 2 – Lesson 5 Questions 30.0/ 50.0 Points

Question 21 of 40

2.5/ 2.5 Points

You are the owner and only employee of a company that repairs computers. Last year, you earned total revenues of $75,000. Your costs for equipment, rent, and supplies were $10,000. To start this business you quit a job at another computer software firm that paid $40,000 a year. During the year, your economic costs were __________ .

A. $10,000

B. $40,000

C. $50,000

D. $75,000

Question 22 of 40

0.0/ 2.5 Points

Sarah has a savings account with a $1,000 balance that earns 3% APY. She decides to withdraw the entire balance to buy a laptop computer. What will be her opportunity cost in buying the laptop?

A. the cost of the laptop

B. the foregone interest

C. the foregone interest and the cost of the laptop

D. the cost of the laptop minus the foregone interest

Question 23 of 40

0.0/ 2.5 Points

Suppose that a consumer is currently spending all of her income on 10 units of good A and 5 units of good B. The price of good A is $4 per unit, the price of good B is $10 per unit, the marginal utility of the last unit of good A consumed is 20, and the marginal utility of the last unit of good B consumed is 60. If the consumer wants to maximize her utility from consuming the two goods, she should __________ .

A. consume more of good B and less of good A

B. consume more of good A and less of good B

C. continue to consume 10 units of good A and 5 units of good B

D. consume more of both goods

Question 24 of 40

2.5/ 2.5 Points

Juan is consuming three sandwiches and six sodas. If a sandwich costs twice as much as a soda, then __________ .

A. Juan should buy more sodas

B. Juan should buy more sandwiches

C. Juan is maximizing his utility if he derives twice as much utility from the last soda as from the last sandwich

D. Juan is maximizing his utility if he derives twice as much utility from the last sandwich as from the last soda

Question 25 of 40

2.5/ 2.5 Points

Mario has a company that produces plastic freezer bags. His company objective is to maximize __________ .

A. his company’s revenues

B. his company’s total out-of-pocket costs

C. his company’s opportunity costs of each factor of production

D. his company’s economic profits, the difference between total revenue and total cost

Question 26 of 40

0.0/ 2.5 Points

Utility can be thought of as the same as __________ .

A. opportunity cost

B. satisfaction

C. choice

D. none of the above

Question 27 of 40

2.5/ 2.5 Points

The period of time when a firm is unable to change all inputs, or factors of production, is called the __________ .

A. economic term

B. short run

C. accounting term

D. long run

Question 28 of 40

2.5/ 2.5 Points

You own a building that has four possible uses: an Internet cafe, a coffee shop, an ice cream store, and a bookstore. The value of the building in each use is $2,000; $3,000; $4,000; and $5,000, respectively. You decide to open an ice cream store. The opportunity cost of using this building for an ice cream store is __________ .

A. $2,000, the value if the building is used as an Internet cafe

B. $3,000, the value if the building is used as a coffee shop

C. $3,333, the average of the values if the building is used for either an Internet cafe, a coffee shop, or a bookstore

D. $5,000, the value if the building is used for a bookstore

Question 29 of 40

0.0/ 2.5 Points

Dan is an entrepreneur who invests in commercial and residential real estate. He has a savings account with $100,000 that earns 1% APY. Dan wants to buy a house that will give him a monthly cash inflow of $200. What will be the opportunity cost of investing in the house?

A. $1,000

B. $1,200

C. $800

D. $200

Question 30 of 40

2.5/ 2.5 Points

Suppose that MUx / Px < MUy / Py . This implies that __________ .

A. spending a dollar less on Y and spending a dollar more on X increases utility

B. spending a dollar less on X and spending a dollar more on Y increases utility

C. X is more expensive than Y

D. Y is more expensive than X

Question 31 of 40

2.5/ 2.5 Points

The short run can be defined as any period of time __________ .

A. less than one year

B. in which some inputs are fixed

C. in which all inputs are variable

D. in which price is fixed

Question 32 of 40

0.0/ 2.5 Points

Consumers should allocate their scarce income so that __________ .

A. the marginal utility for all goods consumed is zero

B. the marginal utility for all goods consumed is equal

C. the marginal utility divided by price is equal for all goods consumed

D. the marginal utility divided by price is maximized for all goods consumed

Question 33 of 40

2.5/ 2.5 Points

Suppose that Erin spends all of her income on two goods: pizza and fiction novels. If the price of pizza rises, then __________ .

A. the current marginal utility per dollar spent on pizza will rise

B. the current marginal utility per dollar spent on pizza will fall

C. the current marginal utility per dollar spent on fiction novels will rise

D. the current marginal utility per dollar spent on fiction novels will fall

Question 34 of 40

2.5/ 2.5 Points

From 1998 to 2010, the cost of electricity produced with nuclear power has __________ and the cost of electricity produced with solar power has __________ .

A. increased; increased

B. increased; decreased

C. decreased; increased

D. decreased; decreased

Question 35 of 40

2.5/ 2.5 Points

According to the law of diminishing marginal utility __________ .

A. as the consumption of a particular good increases, marginal utility increases

B. as the consumption of a particular good increases, marginal utility decreases

C. total utility is negative

D. Both B and C are correct.

Question 36 of 40

0.0/ 2.5 Points

Which of the following is a reason why the marginal product increases as output increases?

A. decreasing repetition

B. increasing continuity

C. both A and B

D. neither A nor B

Question 37 of 40

0.0/ 2.5 Points

The satisfaction experienced from consuming a good or service is referred to as __________ .

A. utility

B. marginal utility

C. the law of diminishing marginal utility

D. all of the above

Question 38 of 40

0.0/ 2.5 Points

?Marginal utility is the __________ .

A. total amount of satisfaction gained by the consumption of a good or service

B. additional satisfaction gained by the consumption or use of one more unit of something

C. price of a good relative to the prices of other goods and services

D. comparison of utility between two different people

Question 39 of 40

2.5/ 2.5 Points

The budget line shows __________ .

A. the different combinations of two goods that a consumer can buy

B. the quantity of a single good that a consumer is willing to buy at different prices

C. the maximized utility from a good

D. none of the above

Question 40 of 40

2.5/ 2.5 Points

?Which of the following statements about fixed costs is correct?

A. Fixed costs are not opportunity costs.

B. Fixed costs must be paid even if the firm’s output is zero.

C. Fixed costs are always the largest portion of total costs.

D. none of the above

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