Question 2(Multiple Choice Worth 1 points) (02.02 MC) What would be the effect of a decrease in government taxes on a good's supply curve, ceteris paribus? O No change OA shift to the left OA shift to the right OA decrease in price OA decrease in quantity suppliedQuestion 8(Multiple Choice Worth 1 points) (05.02 MC) Assume that all cell phone company workers are less productive because of a decline in human capital. How does this affect the demand for labor in the telecommunications industry? O The market labor demand curve shifts to the left. O The quantity demanded of labor shifts to the left. O The market labor demand curve shifts to the right. O The slope of the market labor demand curve increases. O The slope of the market labor demand curve decreases.Question 6(Multiple Choice Worth 1 points) (02.08 MC) If the supply for a good is very elastic and the demand is very inelastic, who would pay more for an excise tax? O Consumers Producers O Consumers and producers share the burden equally The government O IndeterminateQuestion 17 (Multiple Choice Worth 1 points) (03.06 MC) The following information is available for a company that operates in a perfectly competitive market. Current output 5000 units Current market price $5 Total cost $25,000 Marginal cost $6 Total variable cost $20,000 What is the best action for this firm? Increase output in the short run and exit the market the long run O Increase output in the short run and stay in the market in the long run Reduce output in the short run and exit in the long run Reduce output in the short run and stay in the market in the long run O Shut down in the short run and produce in the long runQuestion 18(Multiple Choice Worth 1 points) (03.05 MC) A firm operates in a perfectly competitive market. Its marginal cost is equal to its marginal revenue. It is incurring economic losses. Based on this information, which of the following is true? OAn increase in output will decrease the firm's economic losses. OA decrease in output will decrease the firm's economic losses. O Any change in output will fail to result in positive economic profits. OAn increase in price will decrease the firm's economic losses. O The firm's marginal revenue exceeds its output's average total cost.Question 10(Multiple Choice Worth 1 points) (03.06 HC) In the short run, a price-taking firm decides to produce zero units of output. Which of the following must have been the case? O The market price was less than the firm's average variable cost. The firm was earning normal profits in the short run but projected economic losses in the long run. O The firm's average total cost was higher than its average revenue. The market price was between the firm's average variable cost and average total cost. O The market price was equal to the firm's average total cost.Question 19(Multiple Choice Worth 1 points) (04.05 MC) Which of the following characterizes a cartel? O Price discrimination O Price collusion and output quotas O Productive efficiency but allocation inefficiency OA more competitive oligopoly O Persistent normal profitQuestion 11 (Multiple Choice Worth 1 points) (01.04 MC) Use the production possibilities table below to answer the following question. Assume constant opportunity costs for Steven and Matthew. Units of Cheese in a Day Fish in a Day Steven 10 25 Matthew 30 10 Which of the following is true regarding Steven and Matthew's trade advantages? O Matthew has an absolute advantage in fish. O Matthew has a comparative advantage in fish. O Steven has an absolute advantage in cheese and fish. O Steven has an absolute and comparative advantage in fish. O Steven has absolute and comparative advantages in cheese.Question 14(Multiple Choice Worth 1 points) (06.01 MC) Use the graph to answer the question that follows. MSC S=MPC Price ($) D=MPB=MSB Quantity Which of the following can cause the relationship shown between the MSC and MPC? An increase in cases of asthma due to pollution A decrease in financial instability from unlawful investing An increase in investment to support educational funding OA decrease in air pollution caused by a nuclear energy plant O An increase in research and development funding of a productQuestion 4(Multiple Choice Worth 1 points) (02.01 MC) According to the law of demand, any change in the own-price will cause a(n) O decrease in demand increase in demand increase in the supply O opposing change in quantity demanded when demand is not perfectly inelastic O opposing change in quantity supplied when supply is perfectly elasticQuestion 7 (Multiple Choice Worth 1 points) (06.01 MC) Which of the following describes a situation where the marginal social benefit is equal to the marginal social cost at equilibrium? O Oligopoly O Monopoly O Positive externality O Allocation efficiency O Negative externalityQuestion 12(Multiple Choice Worth 1 points) (01.06 MC) The table below shows the total utility that Sarah enjoys based on the quantity of pizza slices she consumes. Pizza Slices Consumed| Total Utility (utils) 1 4 2 7 3 4 11 5 12 Based on the table above, which slice of pizza gives Sarah the highest marginal utility? O Slice 1 O Slice 2 O Slice 3 O Slice 4 O Slice 5Question 9(Multiple Choice Worth 1 points) (03.04 MC) If a firm has a fixed accounting cost of $20,000, total explicit costs amounting to $100,000, and total revenue of $100,000, what economic profit is it earning? O Normal O Zero O-$20,000 O $80,000 O IndeterminateQuestion 13(Multiple Choice Worth 1 points) (03.02 MC) Use the graph to answer the question that follows. Price MC ATC ATC, Quantity (units) Which of the following explains the shift indicated on the graph? O Variable costs decreased O Variable costs increased O Fixed costs decreased Total costs increased O IndeterminateQuestion 15(Multiple Choice Worth 1 points) (01.01 MC) Which of the following resources is the most rival? OA music concert at a city park OA full moon OAn interstate highway OA ZOO O The labor of a hair stylistQuestion 16(Multiple Choice Worth 1 points) (02.08 MC) Which of the following, ceteris paribus, would lead to an increase in quantity consumed and a decrease in price? OA lump-sum tax OA per-unit tax OA binding price floor OA decrease in income tax OA per-unit subsidyQuestion 20(Multiple Choice Worth 1 points) (02.01 MC) In the cell phone market, what demand curve shift would occur if the price of cellular service decreased? The demand for cell phones would shift to the left. O The demand for cell phones would shift to the right. The demand for cell phones and the quantity demanded would remain constant. The quantity demanded of cell phones would increase, but the demand curve would not shift. The quantity demanded of cell phones would decrease, but the demand curve would not shift.Question 5(Multiple Choice Worth 1 points) (06.02 MC) Review the table below, which shows the quantity supplied and quantity demanded for a private good. Price Quantity Supplied| Quantity Demanded $1 3 7 $3 6 $5 5 5 6 4 Assume the market shown is perfectly competitive and has social costs that exceed private costs. If these social costs were reflected in the market, how many goods would be exchanged? O Fewer than 5 units O 5 units 6 units O More than 6 units O IndeterminateQuestion 3(Multiple Choice Worth 1 points) (03.02 MC) In the short run, a firm's total cost is $150 if it does not produce any units of output. Its variable cost is $5 per unit. If the firm produces 5 units, variable costs are while total costs are O $5; $50 $5; $70 O $10 O $25; $175 O $25; $775