Reference no: EM13198502

1)Which of the following can U.S authorities NOT do to control monopolies?
a)Regulate price or profit
b)Send those convicted of price fixing to jail
c)Break up a firm that it has convinced a court is monopolistic
d)They can do all these things

2)If a baseball player goes into a game with a batting average of .250 goes one for three in the game, we can say
a)her average performance exceeds marginal performance
b)Her marginal performance exceeds her average performance
c)We cannot say anything about average or marginal performance
d)Her marginal performance is rising

3)Price elasticity of demand is a useful concept because
a)it tells us what the impact on quantity demanded will be of a change in price
b)it tells us what minimum cost will be
c)it allows us to predict with confidence how oligopolies will react to each other
d)all of the above

4)Which is an example of the law of diminishing returns?
a)Every year an orchard produces less fruit
b)a company has sales of $30 million. A million dollar advertising campaign increases sales $10 million to $40 million, but a two million-dollar campaign raises them $15 million to $45 million
c)chiro gets three hits in five at bats in one game, two hits in five at bats in a second and game no hits in three at bats in a third game
d)A beer company introduces an expensive new ad campaign that proclaims "Drink this beer or I will kill you." Beer drinkers are disgusted and the firm's beer sales drop

5)In alternative (d) for question 5, other beer companies find that their beer sales also drop because of revolting ads from their rival. This phenomenon is an example of
a)competitive advantage
b)monopolistic competition
c)negative externalities
d)the production possibilities frontier

6)Poor countries such as India, compared to the United States,
a) arguably have more equal incomes that the US
b)have less equal incomes than the US or other rich countries
c)have less equal incomes that the US but more equal incomes than most industrial countries
d)are not really poor when low prices in these countries are considered
e)None of the above

7)The reason a supply curve for labor might bend backward
a) There is insufficient demand for labor at high wages
b)Supply curves of labor never bend backwards
c)Individuals value leisure, which becomes more affordable at higher wages
d) (a) and (b) are both true