Economics and Demand Curve Sample Essay

Harmonizing to economic expert Colin Camerer of the California Institute of Technology. many New York cab drivers decide when to complete work by puting an income end for themselves. If this is true. so on busy yearss when the effectual hourly pay is higher. cab drivers will A. work the same figure of hours as they will on slower yearss B. work fewer hours than they will on slower yearss

C. work more hours than they will on slower yearss
D. non work any hours

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12 ) A firm’s demand for labour is derived from the
A. chance costs associated with labour and leisure
B. desires and demands of the enterpriser
C. cost of labour inputs
D. demand for its end product

13 ) Owen runs a bringing concern and presently employs three drivers. He owns three new waves that employees use to do bringings. but he is sing engaging a 4th driver. If he hires a 4th driver. he can schedule interruptions and tiffin hours so wholly three new waves are in changeless usage. leting him to increase bringings per twenty-four hours from 60 to 75. This will be an extra $ 75 per twenty-four hours to engage the 4th driver. The fringy cost per bringing of increasing end product beyond 60 bringings per twenty-four hours A. is $ 0 because Owen does non hold to buy another new wave B. is $ 5

C. is $ 75
D. can non be calculated without cognizing Owen’s entire fixed costs

14 ) Expected economic net income per unit is equal to
A. expected monetary value
B. expected mean entire cost
C. the difference between expected mean monetary value and expected mean entire cost D. the difference between expected entire gross and expected entire cost

15 ) If a house in a absolutely competitory market experiences a technological discovery. A. other houses would happen out about it finally
B. other houses would happen out about it instantly
C. other houses would non happen out about it
D. some houses would happen out about it. but others would non

16 ) A important difference between monopoly and perfect competition is that A. free entry and issue is possible in a monopolized industry. but impossible in a competitory industry B. competitory houses control market supply. but monopolies do non C. the monopolist’s demand curve is the industry demand curve. while the competitory firm’s demand curve is absolutely elastic D. net incomes are driven to zero in a monopolized industry. but may be positive in a competitory industry.

17 ) A monopoly house is different from a competitory house in that A. there are many replacements for a monopolist’s merchandise while there are no replacements for a competitory firm’s merchandise B. a monopolist’s demand curve is absolutely inelastic while a competitory firm’s demand curve is absolutely elastic C. a monopolizer can act upon market monetary value while a competitory house can non D. a competitory house has a U-shaped norm cost curve while a monopolizer does non

18 ) The difference between a absolutely competitory house and a monopolistically competitory house is that a monopolistically competitory house faces a A. horizontal demand curve and monetary value peers fringy cost in equilibrium B. horizontal demand curve and monetary value exceeds fringy cost in equilibrium C. declivitous demand curve and monetary value peers fringy cost in equilibrium D. declivitous demand curve and monetary value exceeds fringy cost in equilibrium

19 ) Equally long as fringy cost is below fringy gross. a absolutely competitory house should
A. addition production
B. clasp production changeless
C. lessening production
D. reconsider past production determinations

20 ) Because a monopolistic rival has some monopoly power. advertisement to increase that monopoly power makes sense every bit long as the fringy
A. benefit of advertisement is positive
B. cost of advertisement is positive
C. benefit of advertisement exceeds the fringy cost of advertisement
D. cost of advertisement exceeds the fringy benefit of advertisement