Site MapHelpFeedbackMultiple Choice Quiz
Multiple Choice Quiz
(See related pages)

1
Which of the following factors of production is likely to be fixed in the short run?
A)The location of the firm.
B)The number of employee-hours.
C)The amount of electricity consumed.
D)The amount of paper used.
E)The amount of water used.
2
A price taker confronts a demand curve that is
A)vertical at the market price.
B)upward sloping.
C)downward sloping.
D)horizontal at the market price.
E)elastic.
3
When the marginal return to the variable factor of production is diminishing, the marginal cost curve is
A)upward sloping.
B)convex.
C)parallel to the vertical axis.
D)downward sloping.
E)concave.
4
The common goal shared by most all private firms is to
A)be a responsible member of the community.
B)provide the minimum amount of customer service possible.
C)profit maximize.
D)treat workers fairly.
E)be environmental friendly.
5
Suppose the perfectly competitive firm knows that it is not going to shutdown but it is going to earn a loss. It should pick the output level where
A)total costs are minimized.
B)price equals marginal costs.
C)total revenues are maximized.
D)total variable costs are minimized
E)price is greater than marginal costs.
6
Which of the following is not a characteristic of a perfectly competitive market?
A)All firms sell the same standardized product.
B)The market has many buyers and sellers.
C)Productive resources are mobile.
D)There are high barriers to entry.
E)Buyers and sellers are well informed.
7
In which of the following short run scenarios should a firm shut down?
A)Price is less than average cost.
B)Price is less than marginal cost.
C)Price is less than average variable cost.
D)Price is less than average fixed cost.
E)Price is less than average revenue.
8
Which of the following is not a determinant of supply?
A)Technology
B)Consumer's income.
C)Input prices.
D)The number of suppliers.
E)Expectations.
9
The amount by which the market price exceeds the seller’s reservation price is called
A)producer surplus.
B)profit.
C)consumer surplus.
D)net surplus.
E)reservation surplus.
10
Consider a market for corn which has an equilibrium price of $5/bushel and an equilibrium quantity of 10,000 bushels per day. Suppose the minimum price the farmers are willing to accept is $1/bushel. How much producer surplus do the farmers in this market reap?
A)$5,000
B)$30,000
C)$25,000
D)$40,000
E)$20,000





To learn more about the book this website supports, please visit its Information Center.
(c)2007 McGraw-Hill Higher Education
Any use is subject to the Terms of Use and Privacy Policy.
McGraw-Hill Higher Education is one of the many fine businesses of The McGraw-Hill Companies.


Principles of EconomicsOnline Learning Center

Home > Chapter 6 > Multiple Choice Quiz