ECONOMICS

31.If a group of consumers decide to boycott a

particular product, the expected result would be

a. An increase in the product price to make up

lost revenue.

b. A decrease in the demand for the product.

c. An increase in product supply because of

increased availability.

d. That demand for the product would become

completely inelastic.

32. Which of the following is not likely to affect

the supply of a particular good

a. Changes in government subsidies.

b. Changes in technology.

c. Changes in consumer income.

d. Changes in production costs.

33.If a product's demand is elastic and there is a

decrease in price, the effect will be

a. A decrease in total revenue.

b. No change in total revenue.

c. A decrease in total revenue and the demand

curve shifts to the left.

d. An increase in total revenue.

34.All of the following are complementary goods

except

a. Margarine and butter.

b. Cameras and rolls of film.

c. VCRs and video cassettes.

d. Razors and razor blades.

35.The law of diminishing marginal utility states

that

a. Marginal utility will decline as a consumer

acquires additional units of a specific product.

b. Total utility will decline as a consumer acquires

additional units of a specific product.

c. Declining utilities causes the demand curve to

slope upward.

d. Consumers' wants will diminish with the

passage of time.

36.In the pharmaceutical industry where a

diabetic must have insulin no matter the cost and

where there is no other substitute, the diabetic's

demand curve is bestdescribed as

a. Perfectly elastic.

b. Perfectly inelastic.

c. Elastic.

d. Inelastic.

Costs of Production

37.Because of the existence of economies of

scale, business firms may find that

a. Each additional unit of labor is less efficient

than the previous unit.

b. As more labor is added to a factory, increases

in output will diminish in the short run.

c. Increasing the size of a factory will result in

lower average costs.

d. Increasing the size of a factory will result in

lower total costs.

38.In the long run, a firm may experience

increasing returns due to

a. Law of diminishing returns.

b. Opportunity costs.

c. Comparative advantage.

d. Economies of scale.

39.The measurement of the benefit lost by using

resources for a given purpose is

a. Economic efficiency.

b. Opportunity cost.

c. Comparative advantage.

d. Absolute advantage.

Items 40 and 41are based on the following

information:

40.The total cost of producing seven units is

a. P90.02

b. P168.00

c. P258.02

d. P280.00

41.The marginal cost of producing the ninth unit

is

a. P23.50

b. P23.75

c. P25.75

d. P33.75

42.Daily costs for Kelso Manufacturing include

P1,000 of fixed costs and total variable costs are

shown below.

Unit

output 10 11 12 13 14 15

Cost P125 P250 P400 P525 P700 P825

The average total cost at an output level of 11

units is

a. P113.64

b. P125.00

c. P215.91

d. P250.00

Items 43 through 45 are based on the following

information:

**4

43. The marginal physical product when one

worker is added to a team of 10 workers is

a. 1 unit.

b. 8 units.

c. 5 units.

d. 25 units.

44.The marginal revenue per unit when one

worker is added to a team of 11 workers is

a. P105.00

b. P225.00

c. P35.00

d. P47.50

45.The marginal revenue product when one

worker is added to a team of 11 workers is

a. P42.00

b. P225.00

c. P105.00

d. P47.50

DON'T GIVE WRONG ANSWERS. YOU WILL BE RATED UNHELPFUL AUTOMATICALLY