** ** a **** ** * purely *********** industry is confronted **** ** *********** ***** ** $5 *** ******** *********

* **** ** ******* than ***

B **** **** ** ***

* **** be **** **** ***

* may be ****** ******* ** **** **** ***

** * firm that ** ********* ** **** interest ********

* ****** use ***** ******* of ***** inputs and ***** ******* ** expensive ****** ** producing *** output

B **** **** ***** ** the ************ ** each ** ***** at *** *******

* ****** *** large ******* ** *** **** productive ****** and ***** ******* ** *** least ********** ****** ** producing *** *******

* ****** *** *********** ** resources **** **** ******* *** ***************** ****** ** the ******* *****

3) ** ***** ** ***** *** *********** ***** competition among ******* ** ****** *** resulting:

A ******** **** ******** quantity demanded *** ******** ******** supplied

* ******* will ******** ******** ******** *** decrease ******** *********

* ******* **** ******** ******** ******** *** ******** ******** *********

* ******** will ******** ******** demanded and ******** ******** supplied

** ************* Creations and *********** ****** both sell ***** in a competitive ****** If ** the ****** ***** of $5 **** *** running out of ***** ** **** (they ********* **** ** with *** ******** demanded at **** ****** **** ** would expect **** ************* and Julia’s ****

* lower ***** ***** and ******** ***** quantity supplied

* raise ***** ***** and ****** ***** quantity supplied

* lower ***** ***** *** ****** their ******** *********

D raise ***** ***** and ******** ***** ******** *********

5) Since ***** ************ ****** ** *** ******* **** ****** *** *** ******** ********* has ********* **** ***********

*

*********** ** ********* ** the *** ** ****** ** that **** ******* * ******** ******* supply curve
*

******** **** *** ****** ** DVD ******* has increased
*

*********** an ********* to the *** ** ****** ** **** **** ******* an ****** ******* demand ****** *

******** **** *** ****** *** DVD players has ********** **

** * market ******* the distribution of output **** ** ********** ********* by:
*

a ****** consensus ** ** **** ************ ** ****** ** **** ********** *

******** needs *** ************ *

********** regulations **** ******* * ******* ****** for all
*

the ********** *** ****** of the resources **** households supply
**

** a *********** market ******* ***** **** ****** *** ********** ********** ********* ********* *

************ ************ by ********* ******** **** * ******* *

**** choices **** result ** *** **** ********** ** available ********** *

**** **** prevent new firms **** ******** *** ********* *

** do so will maximize *** firms’ profits
8)

******* **** the ***** ** ******* falls **** ** to ** *** bushel *** **** as * ****** *** total ******* ******** ** peanut ******* ******* **** $16 to *** ******* ****** *

no inference *** ** **** ** ** the ********** of ****** *** peanuts
*

*** demand *** ******* ** ******** *

the ****** ***** *** ******* *** ******* ** *** right
D

the demand for ******* is ********** **

If ********** ******** that labor *** ******* **** be **** ** ***** *********** ** ******** ** *** ***** ** ******* **** ***** a firm to ***** A

less ***** as * *********** of *** ****** ******* B

**** ***** ** a *********** ** *** output ******* *

**** ***** as a consequence of *** substitution ******* D

**** labor ** * *********** ** *** ************ ******* ***

** ***** ** *** ********* ********** *** economies of ***** ********* at relatively low ****** ** ******** A

********* ********* *

automobile ************* * ********

mixing
* ********

production
*** **

* **** ******* ** ******* ** output ** the ***** run *** ***** **** **** * *****

B its

***** plus *** ******** costs
C ***

***** costs
* ***

marginal ****** *** Which

** the ********* ********** * ******** ************ * *

*********** hires **** ********** clerks
* ******

to **** ******* competition * US watch ************ ***** *** ** its ****** ******* C *

***** ************ **** **** ** *** ********* ** coke and iron **** * *

****** **** ** extra dose of fertilizer ** his corn ***** 13) ******

an ***************** wage **** might ****** **** labor costs by:
A **********

*** ****** ** ****** * increasing

*** **** ** ******* ** being fired *** ********* C increasing

voluntary worker ********* * **********

*** **** ** attract ************* ****** 14) *

**** can **** *** ******* ** * **** **** ** ** per hour *** **** *** ** *** hour to all ** its ********* ** attract * seventh ****** *** marginal **** cost ** the ******* ****** **** * $21

B ****

C ****

* ***

*** Price

******* ******** revenue *** *** **** ********** ******* the:
A ******

***** **** below *** ******** ******* ****** * ******

***** ** ************ * **********

******** * ******* output **** ***** * purely *********** ***** D ***

** *********** returns ** ************* *** *********

** difficult ** ******* ********* because:
* neither

allocative *** ********** efficiency ** ********* * ***

***** *** ****** decisions ** any *** **** ****** ** *** reactions ** its rivals
C output

may ** ****** homogenous ** differentiated
D ***

number ** ***** ** too large to **** collusion *************** *** *

*********** **** **** maximize ******* at **** ****** ** ******* A the

difference ******* marginal ******* *** ***** ** ** * ******** * *****

revenue and ***** **** *** ****** * *****

******* average total **** ** *** largest ******* D *****

******* ******* ***** **** ** the greatest ******* *** ********

*********** ****** **** A **********

in ********** ***** **** *** *** ********* in ***** *********** * *****

********* ** * **** that *** ignored by its ******* C advertising

product ********* *** ******* ** the **** or ********* *************** of * ******** * ***********

between ******** ** ********* ********** for example *********** ******* ******** and ***** ** *** *********** of automobile ****** *** ***********

***

****** ******** efficiency when **** * ********* ********

********* ** ********** products
* ******* *****

** ******* *********** ********* of ****** * reduces *****

******** * ********* entry

********* 20) ***** **

the ********* is *** * ******** ****** ** natural monopoly?
* ************ behavior

* ******* use

** *********** ******* * ************ ************

* large-scale *******

effects
*** ******* that

** ******** ** ************* by * *** ***** and ***** leadership ** would ****** that:
* marginal *******

***** ****** ******** ***** * ***** *****

****** both ******** cost *** average ***** cost
* ***** *****

***** ******* ***** ***** * price would

equal marginal ***** 22) **** economists

**** ************* ****** ** ******** to the economy they mean that **** * ****** mainly

from government subsidies
* ****** deliberately

**** *** ****** ****** and ************ * ****** *************

* ****** randomly

*** **** *

******** * *** ******* *** **** * **** ***** ** *** ********** Other firms *** to ******* a ******* ******* *** ******** they **** ****** ******* total ***** than the ******** **** **** ********* ************* A spillover ******

* ****************** *

*********** marginal

******** * diseconomies of

****** *** ** ***

**** *** a pure ********** **** ******** ******* by ********* **** ****** ** ***** ******** cost is ***** to:
* ******* *****

B average variable

***** * ******** ********

* ******* total

***** 25) ** ********

taxes **** ********* and resource productivity increased simultaneously *** equilibrium:
* ***** *****

would necessarily ***** * ***** *****

would *********** ***** C ****** *****

***** * ****** would

***** *** ******* ****

******* ***** **** *** ************ rises ** * particular ******* ***** things ***** *** aggregate:
* ************ *****

**** ***** downward
B ****** *****

will shift ********* * ****** curve

**** ***** ********** * ****** *****

will ***** ********* *** Suppose ***

price ***** ** fixed *** *** is * *** the *** *** ** a negative **** ******* ** achieve *************** ****** ********* ********** should:
* reduce *****

** **** ******** * reduce *****

** *** billion
* increase **********

expenditures ** $50 ******** * ******** government

************ by **** billion
28) ************ ******

****** ** ** named ******* **** A ** ********

** ****** **** GDP
B ******** **

********* ** *** ************ ***** ******* * ** *****

at ********* greater ***** ********** D *********** *******

*** **** ** government
*** *********** *

nation’s ***** ***** and *** ********** ***** of *** ***** *** ** achieved:
* **** *******

****** *** monetary ******* * **** ****

fiscal ******* C **** ****

fiscal *** monetary policy
D **** with

******** ******* *** ******* that

** ****** rise 4 ******* **** *** **** **** ***** ****** ** ****** rise ** ********* ** *** ********** power ****** theory ** ******** ***** **** should happen ** *** ******** **** between *** dollar and the ****** * *** ******

**** ** revalued
* *** ******

****** depreciate
* The ****

should *********** * *** ****

****** **********

Click here to download attached files:
ECO 561 Final Exam.docx