Economic midterm

SST. Charles Hospital, located in an upper-income neighborhood of a large city, latterly received a restored mansion as a gift from an appreciative patient. The board of directors decided to remodel the mansion and use It as restorative quarters for patients go forthing to pay a premium for luxurious accommodations. The monetary value to the hospital of using the mansion includes Selected upshot d. Both b and c distrust 2 O out of 0. 5 checks Which of the pursuance statements Is off-key? Selected final result c. D If economic profit is positive, accounting profit essential also be positive. question 3 economical profit is the ruff measure of a firms performance be get under ones skin the opportunity cost of using ALL resources Is subtracted from total revenue. incredulity 4 Mallory decides to spend three hrs working overtime rather than ceremonial occasion a video with her friends. She earns $8 an hour. Her opportunity cost of working is the role she would render rece ived had she watched the video. interrogate 5 Russell spends an hour studying preferably of playing tennis. The opportunity cost to him of studying is Selected dress c. The enjoyment and economic consumption he would experience received had he played tennis. OF 22 Economic profit Selected dissolving agent a. Al never exceed accounting profit. Question 7 Bee is opening her own court-reporting business. She financed the business by withdrawing money from her individualized savings account. When she closed the account, the bank representative mentioned that she would have take in $ three hundred in interest next year. If Bee hadnt opened her own business, she would have earned a salary of $25,000. In her first year, Bees revenues were $30,000. Which of the spare-time activity statements is illuminate? Selected Answer c. B Bees total explicit costs are $25,300. Question 8 recall that the firms only variable input is labor.When 50 workers are used, the honest product of labor is 50 and the marginal product of labor is 75. The salary rate is $80 and the total cost of the fixed input is $500. What is median(a) variable cost? Selected Answer b. $1. 60 Question 9 Suppose that you run a house- paint company and currently have 2 workers painting a total of 4 houses per month. If you hire a third worker, 6 houses can be painted per month. If you hire a fourth worker, 9 houses can be painted, and a fifth and sixth worker go forth adjustment magnitude the number of houses painted to 13 and 15, respectively. Diminishing returns Selected Answer rigid in when the sixth worker is hired.Question 10 When marginal cost is rising, honest out variable cost Selected Answer a. D must be rising. Lorrys Lunchmeats is a small-scale street vendor business. If Larry makes 15 pretzels in his first hour of business and incurs a total cost of $16. 50, his average total cost per pretzel is $1. 10. Question 12 At all levels of labor higher than the point where the marginal cost curve crosses the average variable cost curve, average variable cost rises. Question 13 Teachers Helper is a small company that has a subcontract to produce instructional materials for disabled children in public school districts.Then the Selected Answer b. A Question 18 Consumer surplus all of the above Question 19 Suppose a rime destroys much of the Florida orangeness corp.. At the same time, suppose consumer tastes shift toward orange Juice. What would we expect to happen to the equilibrium terms and quantity in the commercialise for orange Juice? Price will increase, quantity is indeterminate (may increase or decrease). Question 20 You lose your calling and, as a result, you buy fewer romance novels. This shows that you consider romance novels to be a(n) Selected Answer c. A luxury good.Question 21 Consumer surplus is the amount a vendee is willing to pay for a good minus the amount the vendee actually pays for it. Question 22 Which cell in the following dining ta ble represents an increase in equilibrium quantity and an indeterminate change in equilibrium expenditure? An Increase in Supply An Increase in Demand A A Decrease in Supply Selected Answer b. D c Question 23 An example off price floor is Selected Answer a. B rent control. Question 24 Which of these statements best represents the law of drive? When the price of a good decreases, buyers purchase more than(prenominal) of the good.Question 25 In the housing market, rent control causes quantity supplied to sink and quantity removeed to rise. Question 26 If the market price of eggs rises at the same time as the market quantity of eggs researches decreases, this could have been caused by a decrease in supply with no change in demand. Question 27 Question 28 Use the following demand and supply functions to answer the following question Demand Q = 50 UP supply SQ = 20 + UP If the price is $10, there is a surplus of 30 units. Question 29 Which of the following will cause an increase in consumer surplus? Technological improvement in the production of the good Question 30 Suppose you are in rushing of setting prices at a local sandwich shop. The business need to increase its total revenue and your Job is on the line. If the demand for sandwiches is elastic, you Selected Answer d. C should not change the price of sandwiches. Question 31 Merrills income shot of demand for football tatters is 1. 50. All else equal, this means that if her income increases by 20 percent, she will buy 30 percent more football tag ends.Question 32 Which of the following could be the cross-price elasticity of demand for two goods that are complements? Question 33 Selected Answer d. B demand is inelastic and supply is elastic. Question 34 When we move upward and to the left along a linear, downward-sloping demand curve, price elasticity of demand Selected Answer b. C always becomes smaller. Question 35 When the price of bubble gum is $0. 50, the quantity demanded is 400 packs per day . When the price falls to $0. 40, the quantity demanded increases to 600.Given this information and using the midpoint method, we know that the demand for bubble gum is elastic. Question 36 At age 40, Joe is considering quitting his Job and going back for a college degree. He needs two more years full-time. Tuition is $10,000 per year. He earns $30,000 per year. A college degree would raise his annual income by $10,000 per year. He will retire at age 70. From an enthronisation standpoint, Joe will go back full-time if Selected Answer a 10,000 x 40,000 x Question 37 Martha and Sarah have the same preferences and incomes.Just as Martha arrived at the theater to see a play, she discovered that she had preoccupied the $10 just the ticket she had purchased earlier. Sarah Just arrived at the theater planning to buy a ticket to see the same play when she discovered that she had lost a $10 bill from her wallet. If both Martha and Sarah are rational and both still have enough money to p ay for a ticket, which one of the following statements is correct? Martha and Sarah will take the same action (either to pay for another ticket or not to ay) because the ticket lost or $10 lost is a sunk cost and it should not factor into their decisions.Because bagels and emollient tall mallow are often eaten together, they are complements. Suppose we observe that the equilibrium price of cream cheese has risen but the equilibrium quantity of bagels has fallen. Which of the following explanations is consistent with these changes in the bagels and cream cheese markets? Price of milk increased. Question 39 complements. Suppose we observe that both the equilibrium price of cream cheese and the equilibrium quantity of bagels have increased. Which of the following Price of dredge decreased.