QUESTION 1 In economics, the cost of something is the dollar amount of obtaining it. always measured in units of time given up to get it. what you give up to get it. often impossible to quantify, even in principle. Figure 15-5 Price Curve C Curve D PS P4 P3 P2 P1 PO Curve B Curve A it 01 02 0 Q1Q2 Q3 04 Quantity Refer to Figure 15-5. A profit-maximizing monopoly's profit is equal to O P4 x Q3. O (P4-P2)x Q3. 0 (P4-P1) x Q3. (P5-PO) x 01 QUESTION 3 A person who takes a prescription drug to control high cholesterol most likely has a demand for that drug that is inelastic unit elastic. elastic. highly responsive to changes in income. QUESTION 4 Figure 5-5 60 54 +- 48 36 30 24 16 6 12 PALIO Demand 3 6 9 12 15 18 21 24 27 30 33 Duantity Refer to Figure 5-5. At a price of $30 per unit, sellers' total revenue amounts to $150. $200. $288. $450. QUESTION 5 Two goods are substitutes when a decrease in the price of one good decreases the demand for the other good. decreases the quantity demanded of the other good. o increases the demand for the other good. increases the quantity demanded of the other good. FOI QUESTION 6 A production possibilities frontier can shift outward if government increases the amount of money in the economy. there is a technological improvement. resources are shifted from the production of one good to the production of the other good the economy abandons inefficient production methods in favor of efficient production methods. QUESTION 7 The intersection of a firm's marginal revenue and marginal cost curves determines the level of output at which total revenue is equal to variable cost. total revenue is equal to fixed cost. total revenue is equal to total cost. profit is maximized. OOOO QUESTION 8 Figure 2-4 50 | 1025?ery 45 40 35 с 30 25 20 15 DB 10 5 10 20 30 40 50 60 70 80 oyusles Refer to Figure 2-4. Inefficient production is represented by which point(s)? OAB Ос OCD D QUESTION 9 Figure 2-3 22222075 4 K .L M N tubes Refer to Figure 2-3. This economy cannot produce at which point(s)? OJL OJ, LM DL QUESTION 10 If a 40% change in price results in a 25% change in quantity supplied, then the price elasticity of supply is 0.63, and supply is elastic, 0.63, and supply is inelastic. 1.60, and supply is elastic. 1.60, and supply is inelastic . ckboard.com MET EEN Cube X Maps Remaining Time: 1 hour, 47 minutes, 00 seconds Question Completion Status: QUESTION 11 Figure 15-5 Price Cure 15 D4 P3 22 PI PO Carme 01 02 03 04 Refer to Figure 15-5. A profit-maximizing monopoly will produce an output level of O 01 02 03 Click Save and Submit to save and submit. Click Save All Art to save all answers MacBook Pro P4 P3 P2 PE PO Curve B Curve A Q102 03 04 Puantity Refer to Figure 15-5. A profit-maximizing monopoly will produce an output level of O Q1. Q2 Q3. O 04. QUESTION 12 For a good that is a necessity, O quantity demanded tends to respond substantially to a change in price. o demand tends to be inelastic. the law of demand does not apply. All of the above are correct. QUESTION 13 For a good that is a luxury, demand O tends to be inelastic. tends to be elastic. has unit elasticity O cannot be represented by a demand curve in the usual way.
