CLEP Principles of Microeconomics: Practice & Study Guide Final Exam
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Question 11.Which of the following is true for two products that are compliments?
Question 22.When the price of gasoline rises by 10% demand falls by 2%. What is true of the demand for gasoline?
Question 33.Using the same amount of resources, Island X can produce 75 lb of apples or 15 lb of strawberries and Island Y can produce 30 lb of apples or 18 lb of strawberries. Which statement is consistent with this information?
Question 44.An economy produces both military and consumer goods. When the economy is producing inside the production possibilities curve, which of the following is a consequence?
Question 55.At 0 units of production total cost is $60. At 3 units of production total coat is $105. What are the average fixed and average variable costs at 3 units of production?
Question 66.Which of these events would not change average variable cost for product X but would raise average total costs?
The total cost for producing a product are as follows:
0 units $50
1 unit $70
2 units $85
3 units $95
What is the marginal cost of producing the third unit?
Question 88.How is the individual demand curve for a product shaped when marginal utility decreases as more of the product is consumed?
Question 99.Government regulators would like a natural monopoly to produce a socially optimal level of output. Where should regulators set the price?
Question 1010.Which of the following is a characteristic of monopolistic competition?
Question 1111.When does monopsony occur in a labor market?
Question 1212.An increase in the price of the good that labor produces would result in which of these?
Question 1313.What does the market demand curve show?
Question 1414.Which would have the biggest effect on a market demand curve for a whole city?
Question 1515.What is a sunk cost?
Question 1616.According to income elasticity of demand, which of the following is an inferior good?
Question 1717.According to income elasticity of demand, how does rising income affect spending habits?
Question 1818.Why might a company have a perfectly inelastic supply?
Question 1919.Which one is NOT a characteristic of monopolistic competition?
Question 2020.Which company did the Justice Department require be broken up in the early 1980s because they had become too powerful of a monopoly?
Question 2121.What types of discounts are offered as a second degree of price discrimination?
Question 2222.What is a long-run cost?
Question 2323.Which of these does the cost curve demonstrate?
Question 2424.Sarah owns a factory that produces tin cans. A company puts in an order for twice as many cans as usual, but only for one month. Why might Sarah turn down this order?
Question 2525.Which of these factors affecting poverty can be proactively started at an early age?
Question 2626.Define protectionism.
Question 2727.Which of the following is an example of a regressive tax?
Question 2828.Schools, colleges and universities can all provide external benefits to the community. Which of the following is an example of an external benefit that comes from education?
Question 2929.What type of market failure occurs when the market does not make any products at all?
Question 3030.The owner of Clayton Manufacturing is contemplating the hiring of a new employee. If a new employee can produce 70 additional units per week and each unit sells for $6 then what is the marginal revenue product of that new employee?
Question 3131.Why do diamonds cost so much?
Question 3232.Why is the phrase 'all other things constant' important?
Question 3333.Bob is looking for a job, but he lacks the credentials to get a specialized job with a high starting salary. It is likely he will have to start working in an entry level position. Which of the following would benefit Bob in this scenario?
Question 3434.How should a government behave in a capitalist system?
Question 3535.Which one of the following statements is correct?
Question 3636.What determines the price of a good or service in a capitalistic economy?
Question 3737.Which one of the following is the best explanation of economic incentives?
Question 3838.What does the right to transfer allow a property owner to do?
Considering the following information, what would be the best decision using marginal analysis?
Producing an additional unit of smartphones has a marginal cost of $1,000 and a marginal benefit of $1,500? The change in net benefits is $500.
Question 4040.Which one of the following choices describes rejectability?
Question 4141.What is a public good?
Question 4242.The method which things are taxed is known as what?
Question 4343.How does the idea of utility influence producers in the products they create for consumers?
Question 4444.Elasticity of demand is said to be elastic when elasticity is:
Question 4545.Which is true about the products in a monopolistic competition?
Question 4646.What is average cost?
Question 4747.Which of the following is NOT an effect of a trust?
Question 4848.Jones Steel just built a fully automated factory that has only 10 labor and management employees who oversee production. Which factors gain the most income when the factory starts up?
Question 4949.What is a cartel?
Question 5050.Which one of the following economic systems is characterized by state ownership of land and capital, but individuals remaining in control of their labor?
CLEP Principles of Microeconomics: Practice & Study Guide Final Exam Instructions
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