1. The demand for a factor: a. depends on the marginal utility received from con
ID: 1125184 • Letter: 1
Question
1. The demand for a factor:
a. depends on the marginal utility received from consuming the factor
b. depends on the demand for the product that the factor produces
c. Both of the above
d. Neither of the above
2. The change in total revenue from employing an additional factor unit is:
a. marginal physical product
b. marginal factor cost
c. marginal revenue product
d. marginal resource utility
Answer questions 3. through 12. after completing the following table. Assume an output price of $5.
Workers Widgets MPP Total Revenue MRP MFC
0 0 X $0 X X
1 100 100 $500 $500 $300
2 190 90 950 450 300
3 270 __ ____ ___ 300
4 340 __ ____ ___ 300
5 400 __ ____ ___ 300
6 450 __ ____ ___ 300
7 490 __ ____ ___ 300
8 520 __ ____ ___ 300
3. What is the marginal physical product of the fourth worker?
60
70
80
90
4. What is the marginal physical product of the seventh worker?
60
50
40
30
5. What is the total revenue when five workers are employed?
$2000
$2250
$2450
$2600
6. What is the total revenue when seven workers are employed?
$2000
$2250
$2450
$2600
7. What is the marginal revenue product of the fourth worker?
$200
$250
$300
$350
8. What is the marginal revenue product of the eighth worker?
$300
$250
$200
$150
9. What is the profit-maximizing number of workers to employ?
3
5
6
8
10. If the output price increased to $6, what would be the profit-maximizing number
of workers to employ?
3
4
6
7
11. If the output price decreased to $4, what would be the profit-maximizing
number of workers to employ?
3
4
5
6
12. If the output price is back to $5, and the MFC decreased to $210, what would
be the profit-maximizing number of workers to employ?
5
6
7
8
13. Screening devices:
a. are used because employers lack perfect information
b. are used because employers seek to hire and promote employees who will be highly productive
c. do not always predict worker productivity accurately
d. All of the above
14. Which market structure will generally produce the optimal quantity of output?
monopoly
oligopoly
perfect competition
All of the above
15. Market failure:
a. occurs when the market does not produce the optimal quantity of output:
can be caused by a lack of perfect competition
Both of the above
Neither of the above
16. If an external cost is generated, the private market equilibrium will be:
less than the optimal quantity
greater than the optimal quantity
equal to the optimal quantity
d. cheese
17. In an external benefit is generated, the private market equilibrium will be:
less than the optimal quantity
greater than the optimal quantity
equal to the optimal quantity
cheese
18. Private market equilibrium will occur where:
a. marginal private benefit is less than marginal private cost
b. marginal private benefit is greater than marginal private cost
c. marginal private benefit is equal to marginal private cost
d. cheese
19. Internalizing an externality means:
changing the external benefit or cost into a private benefit or cost to the person generating it
prohibiting the production of external costs
requiring the production of external benefits
All of the above
20. Which of the methods of controlling externalities does not involve internalizing externalities?
taxes and subsidies
establishing private property rights and reaching voluntary agreements
government regulation persuasion
cheese
21. The optimal quantity of pollution control:
will result in zero pollution
is where the MSB of control equals the MSC of control
Both of the above
Neither of the above
22. Government action:
may result in a more efficient allocation of resources
may result in a less efficient allocation of resources
Both of the above
Neither of the above
23. The primary motivation of participants in the public sector is assumed to be:
altruism
patriotism
self-interest
civic pride
24. Voters:
can only express their preferences from the available candidates
cannot vote for the exact political policies that they favor
Both of the above
Neither of the above
25. People:
are likely to be more satisfied with the choices that they can make as consumers than with the choices that they can make as voters
are likely to be better informed about their choices as voters than about their choices as consumers
Both of the above
Neither of the above
26. Low voter turnout occurs because:
the cost of voting is very high
many potential voters underestimate the effect of their one vote
many potential voters see the cost of voting as greater than the benefits
Both a. and c. above
27. To remain ignorant about a subject:
is always a mistake
always causes a person to suffer loss
may be the best rational choice
Both a. and b. above
28. Rationally ignorant voters:
believe that the cost of gaining information is greater than the benefit of having the information
are the majority of voters
Both of the above
Neither of the above
29. The median voter model predicts that a candidate will do all of the following,
except:
aim for an extreme position in order to gather the most loyal supporters
adjust his or her position in response to polls
speak in general rather than specific terms
None of the above
30. An elected official will tend to:
favor policies that yield benefits in the short run and impose costs in the long run
oppose policies that impose costs in the short run and yield benefits in the long run
Both of the above
Neither of the above
31. A special-interest group:
is likely to have a higher voter turnout than the general public
is likely to be better informed about “their” issue than the general public
Both of the above
Neither of the above
32. An elected official will:
tend to favor policies that yield dispersed benefits and impose concentrated costs
tend to oppose policies that yield concentrated benefits and impose dispersed costs
hurt his or her chances of re-election by being responsive to special-interest groups
None of the above
33. When legislators trade votes in order to pass legislation beneficial to their own districts, this vote trading:
is called logrolling
is a way to prevent “pork barrel” legislation
Both of the above
Neither of the above
34. Pork barrel legislation:
benefits a particular geographic region
is paid for by taxpayers (and/or consumers) from the benefited region
is economically efficient overall
All of the above
35. Private markets:
generally result in the most efficient quantity of output
provide the freedom to pursue self-interest to both consumers and producers
may fail to produce the optimal quantity of output
All of the above
36. Economies of scale:
occur when a firm’s average total cost decreases as the scale of its operation increases
usually occur when variable costs are very large
Both of the above
Neither of the above
37. A natural monopoly:
is an industry in which economies of scale are so important only one firm can survive
if unregulated, would produce the optimal quantity of output
Both of the above
Neither of the above
38. An unregulated natural monopoly:
would attempt to maximize profits
would produce the quantity of output where marginal revenue equals marginal cost
would produce less than the optimal quantity of output
All of the above
Answer questions 39. through 42. by referring to the graph below:
39. The profit-maximizing quantity for this natural monopoly to produce will be:
50 thousand
60 thousand
70 thousand
80 thousand
40. The profit-maximizing price for this natural monopoly to charge will be:
$2
$4
$6
$8
41. The optimal quantity of output for this natural monopoly to produce will be:
70 thousand
80 thousand
90 thousand
100 thousand
42. The optimal price for this natural monopoly to charge will be:
$1
$2
$4
$6
43. The public interest theory of government regulation holds that regulation serves the best interest of:
the general public
the regulated industry
the government regulators
cheese
44. The capture theory of government regulation holds that regulation serves the
best interest of:
the general public
the regulated industry
the government regulators
cheese
45. The public choice theory of government regulation holds that regulation serves the best interest of:
the general public
the regulated industry
the government regulators
cheese
46. The federal government’s regulation of the airline industry from 1938 to 1978:
saved consumers billions of dollars in lower airline ticket prices
decreased the amount of air travel and increased the amount of auto travel
resulted in thousands of fewer deaths from auto accidents
Both a. and c. above
47. Deregulation:
will usually result in higher prices due to the lack of government control
will be fought by the special-interest groups that benefit from the regulation
Both of the above
Neither of the above
48. Antitrust law:
is legislation intended to prohibit attempts to monopolize markets or to engage in anti-competitive behavior
is necessary because competing firms have an incentive to agree to avoid competition
Both of the above
Neither of the above
49. Most agricultural markets:
have a large number of small producers
have seen increasing productivity
Both of the above
Neither of the above
50. Farm prices and total revenue have generally been falling because:
productivity in agriculture has been decreasing
demand for farm products is income inelastic
demand for farm products is price elastic
All of the above
Answer questions 39. through 42. by referring to the graph below: $8 MC TC 0 20 3040 506070 5090100"°D-P 0 20 3040 50 607080 90 100 1 MR Quantity (thousands)Explanation / Answer
1) The asnwer is B -) depends on the demand for the product that the factor produces
because the demand for factor used in the production of good is depend on the demand for a product that factor will produce.
2) The answer is C -) marginal revenue product
because marginal revenue product is the change in the total revenue when employe one more unit factor of production.
3) please upload it again. its against chegg policy
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