Final - Microeconomics 120 - Grade 90

Course Content Week 8: Economics and Christian Thought [May 1 - May 6] Take Test: Week 8 Assignment: Final Exam H H Take Test: Week 8 Assignment: Final Exam Test Information Description Instructions Timed Test This test has a time limit of 3 hours.This test will save and submit automatically when the time expires. Warnings appear when half the time , 5 minutes , 1 minute , and 30 seconds remain. Multiple Attempts Not allowed. This test can only be taken once. Force Completion Once started, this test must be completed in one sitting. Do not leave the test before clicking Save and Submit . Your answers are saved automatically. Question Completion Status: QUESTION 1 The demand curve for oil from OPEC is: flat. vertical. upward sloping. downward sloping. 2.5 points Saved Saved QUESTION 2 If a single supplier produces a good with many good substitutes, then: it will have little control over the market price. the demand curve for its output will be downward sloping. the price it chooses to set must be less than the market price in order to sell additional output. the market demand will be perfectly elastic. 2.5 points Saved Saved QUESTION 3 Which of the following best illustrates a product sold in a perfectly competitive market? soft drinks jeans eggs televisions 2.5 points Saved Saved QUESTION 4 In a perfectly competitive market, firm-level demand is: flat. vertical. positively sloped. ti l l d 2.5 points Saved Saved ? H o m e L e a r n S h a r e RU Resources Remaining Time: 1 hour, 57 minutes, 27 seconds. Click Save and Submit to save and submit. Click Save All Answers to save all answers. NaQuanda Salley 18

negatively sloped. QUESTION 5 There was a dramatic fall in the price of oil in: the early 1970s. the early 1980s. the early 1990s. the late 1990s. 2.5 points Saved Saved QUESTION 6 Which of the following industries would find it easier to establish a cartel? automobile manufacturing retail clothing agricultural products book publishing 2.5 points Saved Saved QUESTION 7 Which one would NOT be considered a network good? Match, the online dating service Microsoft Word Fortnite, the online video game McDonald's hamburgers 2.5 points Saved Saved QUESTION 8 When competitive firms do not have influence over the price of their product, all of the following are true EXCEPT which condition? The product they produce is similar across sellers. The product appeals more strongly to some consumers than others. There are many potential sellers. There are many buyers and sellers, each small relative to the total market. 2.5 points Saved Saved QUESTION 9 What does it mean when an OPEC member cheats? The country produces less oil than it agreed to. The country produces lower-quality oil rather than higher-quality oil. The country produces more oil than it agreed to. The country closes down oil wells for routine maintenance during peak holiday seasons. 2.5 points Saved Saved QUESTION 10 Due to _____, a free market can naturally allocate production across firms in an industry to minimize total costs. market power regulation the invisible hand externality 2.5 points Saved Saved QUESTION 11 ______ cartels can move an industry from competition to pure monopoly. All Most Many Very few 2.5 points Saved Saved Click Save and Submit to save and submit. Click Save All Answers to save all answers. X

All of the answers are correct. QUESTION 19 Above-normal profits are eliminated by _____, and below-normal profits are eliminated by _____. entry; entry exit; exit entry; exit exit; entry 2.5 points Saved Saved QUESTION 20 In the long run, competitive firms want to exit industries in which: P=MC P>MC P>AC P<AC 2.5 points Saved Saved QUESTION 21 Microsoft's market power stems from: its control over a scarce resource. economies of scale. its product compatibility with a lot of other products. being a government-created monopoly. 2.5 points Saved Saved QUESTION 22 What will determine the final equilibrium in a many-player coordination game? The technically superior standard will always win. Accidents of history will determine the final equilibrium. People will rally behind the initial underdog. People will not be able to make a decision until the government decides for them. 2.5 points Saved Saved QUESTION 23 When a firm expands output from 10 to 11 units and total revenue increases from $100 to $110, marginal revenue of the 11th unit is: $110 $11 $10 $210 2.5 points Saved Saved QUESTION 24 Multiple products can thrive in a network industry when: the government decides to allow multiple products. consumers don't care about coordination at all. there are multiple niches to fill; each product can dominate one niche. competitors all go after the same niche. 2.5 points Saved Saved QUESTION 25 When opportunity cost is positive, economic profit _____ account profit. is greater than is less than equals eliminates 2.5 points Saved Saved Click Save and Submit to save and submit. Click Save All Answers to save all answers. X

QUESTION 26 An example of an implicit cost is: the foregone rent on the building you own and are using for your business. liability insurance. wages paid to employees. the price paid for a delivery truck. 2.5 points Saved Saved QUESTION 27 When a high fixed cost of production exists, markets are: easily contested. difficult to contest. moderately difficult to contest. uncontestable. 2.5 points Saved Saved QUESTION 28 The difference between a sunk cost and fixed cost is that: a sunk cost changes in the short run, while a fixed cost changes in the long run. a sunk cost changes in the long run, while a fixed cost changes in the short run. a sunk cost can be changed, while a fixed cost cannot be changed. a sunk cost cannot be changed, while a fixed cost can be changed. 2.5 points Saved Saved QUESTION 29 Firms that produce goods that are the dominant standard goods in the market typically sell these goods at: a loss. a higher price than in a competitive market. a lower price than in a competitive market. marginal cost. 2.5 points Saved Saved QUESTION 30 Game theory studies: the choices made by agents when other agents engage in certain actions. interactive decision making. strategic reactions by firms. strategies to win at games such as Monopoly, 2.5 points Saved Saved QUESTION 31 When many people are involved and when they do not all agree about whether one good really is better than another, the best final equilibrium is usually determined by: consumers. the market. the government. historical accidents. 2.5 points Saved Saved QUESTION 32 A netword good is a good that people benefit _____ from as _____ people use it. more; fewer more; more less; more the most; no other 2.5 points Saved Saved Click Save and Submit to save and submit. Click Save All Answers to save all answers. X

prices competitively. faces a perfectly inelastic demand. QUESTION 40 In a cartel: all firms will cooperate. there are no incentives to cheat. there are no incentives to cooperate. there are incentives to cheat. 2.5 points Saved Saved Click Save and Submit to save and submit. Click Save All Answers to save all answers. X