4114 WordsAug 21, 201517 Pages
1. Improvements in technology for producing all goods must result in (A) an inward shift in the production possibilities curve (B) an outward shift in the production possibilities curve (C) a flatter production possibilities curve (D) a steeper production possibilities curve (E) greater unemployment of labor 2. The quantity of peanuts supplied increased from 40 tons per week to 60 tons per week when the price of peanuts increased from $4 per ton to
$5 per ton. The price elasticity of supply for peanuts over this price range is (A) Elastic (B) Inelastic (C) unit elastic (D) perfectly elastic (E) perfectly inelastic 3. Which of the following best describes the law of demand? (A) The…show more content…
7. Which of the following must be true if a firm is experiencing economies of scale? (A) All costs are explicit. (B) Long-run average total cost decreases as the
firm’s output increases. (C) Economic profits decrease as the firm’s
output increases. (D) Long-run average total cost remains constant
as the firm’s output decreases. (E) Proportionate increases in inputs result in less-than-proportionate increases in output. 8. Compared to a perfectly competitive industry with the same demand and cost curves, a monopoly’s price and output will be which of the following? | Price | Output | (A) | The same | Higher | (B) | Higher | The same | (C) | Higher | Lower | (D) | Lower | The same | (E) | Lower | Higher | 9. If the demand for a good is perfectly price inelastic in the short run and the supply curve is upward sloping, imposing a sales tax on the good will (A) leave the price paid by consumers unchanged (B) decrease the after-tax revenues received by
suppliers (C) increase the after-tax revenues received by
suppliers (D) not change the after-tax revenues received
by suppliers (E) not change the total expenditures by consumers on the good 10. The characteristic of oligopolistic firms that makes them different from all other types of firms is that oligopolistic firms (A) are regulated by a state agency or federal agency (B) consider each other’s

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