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BUS 302L: Micro Economics Exam | Questions and Answers Latest {} A+ Graded | 100% Verified
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BUS 302L: Micro Economics Exam | Questions and Answers Latest {} A+ Graded | 100% Verified
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BUS 302L: Micro Economics Exam | Questions and Answers Latest {2024- 2025} A+Graded | 100% Verified
Because of scarcity, every economic decision involves - a trade-off.
Ryan spends an hour studying instead of going for a bike ride. Assume studying and bike riding were
Ryan's only options for that hour. The opportunity cost to him of studying is: - the enjoyment and
exercise he would have received from bike riding.
The gains from trade are: - a result of more efficient resource allocation.
Which of the following would not tend to lower the price of VCRs? - increasing price of pay-per-view
movies on cable TV
In a market economy, the allocation of the quantity supplied of any good among demanders is
determined by: - the market price.
Milk can be used to make yogurt or cheese. Other things equal, if consumers start demanding more
yogurt. - less milk will be used in cheese and more will be used in yogurt.
The price elasticity of demand: - varies from one point to another on a typical demand curve.
A firm's total cost is $10,000. Its variable cost is $5,500. What is the firm's fixed cost? - $4,500
Which of the following is a correct definition of marginal cost (MC)? - It is the added cost that results
from producing one more unit of a good.
A firm will shut down if: - P < AVC at all levels of output.
A negative externality exists when: - Jack buys a good from Bill, and this makes Todd worse off.
, Hannah runs a manicuring shop. Currently, her shop provides 50 manicures per day, and the shop's daily
total cost (TC) is $600. If Hannah decides to provide 25 more manicures per day, the total cost will rise
by $75 per day. If Hannah does decide to increase production by this much, what will the shop's daily
average total cost (ATC) be?
ATC: TC/≠ unit - $9.00
If Ross decides to ride his bike this afternoon, he will miss his favorite television show, and he won't
have time to study for his economics test. If Ross doesn't ride his bike, he'll choose to watch the
television show instead. (He cannot both watch television and study for the test.) Ross's opportunity
cost of riding the bike is: - the value of watching television show plus the value of studying for the test.
The opportunity cost of purchasing an item is: - the next best thing you could have done with the time
and money spent.
Most residents of Los Angeles think sushi and sashimi are very similar foods. What effect will an increase
in the price of sushi have on the demand curve for sashimi in Los Angeles? - the sashimi demand curve
will shift to the right
In a market economy, - resources move to higher valued uses in response to changes in price.
A perfectly competitive firm: maximizes its profits using what rule? - P = MC
Refer to the figure above. Twelve units of this product are sold at $10 each. Producer surplus is equal to
areas: - E + F
It is common knowledge that many U.S. national parks have become overused. One possible solution to
this problem is to: - increase entrance fees.
Who among the following is most likely to favor an appreciation of the U.S. dollar? - an American
professor on a your of Italian museums.
If the price elasticity of demand for CSUN sweatshirts is 1.5, then: - an increase in price will cause total
consumer expenditures on CSUN sweatshirts to fall.
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