Hmm!? 30) the longer the time frame involved the more likely it is that the demand will be relatively A) inelastic B) flat C) elastic D) steep 31) which of the following is NoT a determinant of the price elasticity of demand? A) the amount of time allowed for adjustment to changes in the price of the commodity B) the price level in a country C) expenditures on the good as a share of a consumer's budget D) existence of substitutes 32) when the consumer spends a small portion of his income on a good demand will be? A) elastic B) elastic unit elastic or inelastic depending upon supply C) inelastic D) unit elastic 33) suppose tht Dillion derives 40 units of total utility from eating 3 hotdogs and 50 units of total utility from eating 4 hotdogs . What is Dillions marginal utility from eating the 4th hotdog? A) 40 B) 5 C) 50 D) 10 34) Economists use what term to describe the want satisfying power of a good? A) income elasticity B) demand C) marginal propensity to consume D) utility 35) which English philosopher set out to develop an arithmetic formula for measuring happiness and along the way invented the util? A) Milton Friedman B) Jeremy Bentham C) John Maynard Keynes D) Adam Smith 36) if total utility is decreasing then marginal utility is A) zero B) negative C) positive D) increasing 37) the total utility from consuming 8 units of a good is 155. The marginal utility of the 8th unit is 7 and the marginal utility of the 7th unit is 11. The total utility from consuming 6 units of the good is A) 144 B) 173 C) 130 D) 137 40) if a dinner guest is serious when claiming he just could get enough of your lasagna and that the more he ate the more he wanted , you would conclude that for him the marginal utility of lasagna was? A) increasing B) zero C) constant D) decreasing 41) a payment for the use of any resource over and above it's opportunity cost called? A) accounting profit B) economic profit C) normal cost D) economic rent 43) a dedicated professor loves being in the classroom and would teach for $50,000 per year but he is actually paid $60,000 per year. This individual A) has an opportunity cost of $110,000 B) has an opportunity cost of $50,000 C) receives economic rent of $1100,000 D) receives economic rent of $10,000 44) economic profit is always A) equal to accounting profit B) greater than accounting profit C) less than accounting profit D) equally likely to be either greater or less than accounting profit 45) the more profits are reinvested into the firm, the A) less there is available to distribute to stockholders B) less there is available to distribute to bond holders C) more the firm will be able to raise in sales of new issues to stock D) more bonds the firm will sell in order to pay their required dividends to preferred stockholders 46) when a person buys stock in a company that person is buying ______, but when a person buys a bond in a company that person is _______ the company A) debt; borrowing funds form B) ownership; lending funds to C) ownership ; borrowing funds from D) debt ; lending funds to 47) the present value of $110 to be received one year from now A) is $110 B) is $121 C) is $100 D) depends on the rate of the discount 48) what is the present value of $104.25 that you could receive one year from now, given that the rate of interest is 4.25 percent? A) $4.25 B) $0.00 C) $100.00 D) $108.50 49) interest can be defined as A) the return above opportunity cost paid to owners of a firm B) the participation of a shareholder in the operations of a firm C) the return paid to owners of capital D) the amount of funds loaned to a creditor 50) implicit costs are A) costs that are variable in the short run and fixed in the long run B) the opportunity costs of using factors that a producer does not buy or hire but already owns C) the costs of using factors that a producer hires or rents D) costs tht are taken into consideration by accountant's