QUESTION 1 4 points Save Answer Which of the following is not a characteristic of the structure of perfectly competitive markets? A Homogeneous product. A, Few sellers. A, Easy, low cost entry and exit. A Each individual rm is small in size relative to the overall market. QUESTION 2 4 points Save Answer Afarm is able to produce 5,000 bushels of peaches per season on 100 acres. Assume it adds one more acre and is able to produce 6,000 bushels per season. The marginal product of the additional acre of land for this farm is: CT 6,000 bushels per acre per year CT 5,000 bushels per acre per year. CT 1,000 bushels per acre per year CT 11,000 bushels per acre per year QUESTION 3 Flexible, or floating, exchange rate is determined by the: m World Bank (\"I Forces of supply and demand W\" Price of gold W\" Central Banks QUESTION 4 SRATCH SRATC, SRATC. 1.000 LRAC Costs 800 per unit 600 (dollars) 400 200 0 Q1 Q 2 Q 3 QA Quantity of output (units per week) In Exhibit above, economies of scale exist up to: O Q1 units of output per week O Q4 units of output per week. O Q2 units of output per week O Q3 units of output per weekQUESTION 5 The demand for the product of a competitive price-taker firm is: O Greater than zero but less than one. O Perfectly inelastic. O dependent on the availability of substitutes for the firm's product. O Perfectly elastic. QUESTION 6 The change in total cost that results from the production of one additional unit is called: O Marginal revenue O Average variable cost O Marginal cost Average total costQUESTION 7 If a perfectly competitive firm sells 10 units of output at a market price of $5 per unit, its marginal revenue per unit is: O $ 50 O Less than $ 5 O $5 More than $ 5 but less than $ 10 QUESTION 8 Variable inputs are defined as any resource that: O varies with the size of the firm's plant. cannot be changed as output changes O can be changed as output changes O can be increased or decreased hourlyQUESTION 9 The long run is a period of time: O that is too short to change the size of a firm's plant O that is long enough to permit changes in all the firm's inputs, both fixed and variable. O in which production occurs beyond one year. O in which production occurs beyond five years. QUESTION 10 An itemized account of a nation's foreign economic transactions is its: O Gross domestic product Goods imports O Foreign exchange rates Good exports Balance of paymentsQUESTION 11 Which of the following would cause the supply of dollars curve in the United States to shift to the right? Japanese made goods become less popular. The supply of dollars decreases. japanese made good become more popular. The value of the dollar falls. QUESTION 12 Which of the following is most likely to be a fixed cost for a business? O expenditures on low-skill labor O shipping charges for the delivery of products O managerial salaries O property taxes on the firm's buildings.QUESTION 13 Which of the following is not an argument used in favor of protectionism? A To protect domestic jobs. A To preserve national security A To reduce prices paid by domestic consumers A To protect against "unfair" competition because of cheap foreign labor A To protect an "infant" industry QUESTION 14 Ayoung chef is considering opening his own sushi bar. To do so, he would have to quit his current job, which pays $20,000 a year, and take over a store building that he owns and currently rents to his brother for $6,000 a year. His expenses at the sushi bar would be $50,000. for food and $8,000 for gas and electricity. What are his implicit costs? QUESTION 15 In the short run, if average variable cost equals $50, average total cost equals $75, and output equals 100, the total xed cost must be: QUESTION 16 Suppose a country with a large domestic textile industry removed all tariffs on imported textiles, we would expect domestic: A Textile prices to decline A Textile prices to rise A Textile production to increase A Textile employment to increase QUESTION 17 Afavorable balance of trade occurs when A goods exports are greater than goods imports. A goods imports are greater than goods exports. A international trade is an increasing share of total output. A the balance on capital account equals the balance on current account. A unilateral transfers are positive. QUESTION 1 8 If one country can produce a good with fewer resources than another country, this is called: A Comparative advantage A Geographic advantage A Free trade A Specialization A Absolute advantage QUESTION 19 Suppose a firm has total revenue of $200 million, explicit costs of $190 million, and implicit costs of $20 million. This firm's accounting profit is: QUESTION 20 In a perfectly competitive market the point of maximum profit for a business firm is where: O P= AC O TR=MR MR=AR MR=MC O TR=TCQUESTION 21 Which of the following transactions would be excluded in the capital account? IT_\"I AJapanese citizen purchases a U.S. Treasury bill T\" A German insurance company purchases New York State bonds. T\" A U.S. citizen purchases a share of stock from a Japanese company. T\" An American purchases a Toyota. QUESTION 22 A restriction on the quantity of a good that can be imported into a country is a(n): IT\".- Tariff A Quota If" Embargo Restricted exchange rate QUESTION 23 Since World War II, tariff reductions have occurred in large part because of negotiations under the: A General Agreement on Tariffs and Trade A Monetary Control Act A, Employment Act A, Industry and Trade Administration Act QUESTION 24 If the opportunity cost of producing cheese is higher in Greece than it is in Italy, then: 0 Italy has a better economy than Greece 7) both Greece and Italy should produce cheese 7?: Greece should specialize in producing cheese A Greece gives up fewer goods to produce cheese than Italy does. 7) Italy should specialize in producing cheese QUESTION 25 The law of diminishing returns applies to which of the following segments of the marginal product of labor curve? O The upward sloping segment only The point where labor input is zero The entire curve. The downward-sloping segment only