Test Daily news: Principles of Microeconomics


SESI 2011/2012


1 . Which will of the next is the best example of a varying cost? A. Monthly payments pertaining to hired labour.

B. Property tax repayments.

C. Monthly rent repayments for a factory.

D. Pension payments to retired employees.

2 . Malik wants to begin his personal business. The business he really wants to start will demand that he purchase a manufacturer that costs $400 000. Malik currently offers $500 000 in the traditional bank earning a few percent curiosity per year. In the event Malik buys the factory with his own money, what is the total annual implicit opportunity cost of purchasing the factory?

A. $0

N. $3 1000

C. $12 000

D. $15 500

3. When a firm is operating in an efficient range,

A. typical variable value is minimized.

W. average fixed cost is reduced.

C. common total expense is minimized.

D. marginal expense is minimized.

5. Suppose that a firm's total cost is provided by the formula TC = 100 + 15Q – 5Q2 + 2Q3, in which Q represents total output. If Queen = 15, then normal variable expense is

A. $10,50.

B. $165.

C. $175.

D. $1 650.

five. Consider this statements when answering this kind of question: I. Suppose a semiconductor chip factory runs on the technology in which the average item of labour is frequent for all job levels. This technology obeys the law of diminishing earnings. II. Presume a semiconductor chip stock uses a technology where the little product of labour soars, then is constant and finally falls because employment improves. The technology obeys legislation of reducing returns. A. I is true and 2 is bogus.

B. I actually is bogus and II is true.

C. Both We and II are the case.

D. The two I and II will be false.

6. Suppose the marginal merchandise of work is doze and the little product of capital is usually 3. In the event the wage price is $9 and the cost of capital is $3, then to be able to minimize costs the company should

A. use more capital and less labour.

W. use more labour and fewer capital.

C. use 4 times more capital than labour.

M. none of the above.

7. Which of the following production capabilities exhibits constant returns to scale? A. Q sama dengan K0. 75L0. 35

B. Q = 3K2 + L

C. Q sama dengan min[K, 0. 2L]

Deb. Q = K0. 4L0. 4

eight. In a competitive market, no single producer may influence the industry price as a. many other sellers are offering an item that is essentially identical. B. consumers have more effect over the selling price than manufacturers do. C. government input prevents firms from affecting price. G. producers agree not to change the price.

on the lookout for. In a competitive market with identical businesses,

A. an increase in demand in the short run will result in a brand new price over a minimum of average total price allowing companies to earn a positive financial profit in the long run. B. company cannot generate positive economical profit in either the short run or perhaps long run. C. firms may earn confident economic profit in the long run in case the long-run marketplace supply contour is upward sloping. D. free entry-and-exit into the market requires that firms generate zero economic profit in the long run even though they might be able to generate positive economic profit inside the short run.

10. Wong's Car port operates in a perfectly competitive market. At the point where marginal cost equals marginal revenue, ATC sama dengan $20, AVC = $15, and the value per product is $10,50. In this circumstance,

A. Wong's Garage can be earning a positive economic revenue.

B. Wong's Garage will need to shut down immediately.

C. Wong's is losing money in the growing process, but could continue to function.

D. industry price can rise in the short run to enhance profits.

14. In a continuous cost competitive industry if perhaps price goes up above its long-run equilibrium level, which of the following will not occur as the industry adjusts to a...


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