ECO 105 Week 2 Quiz | Assignment Help | Wilmington University
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- 02 Sep 2020
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ECO 105 Week 2 Quiz | Assignment Help | Wilmington University
Question 1
A profit-maximizing business will increase
production as long as:
o
marginal cost exceeds marginal revenue.
o
marginal price exceeds average product.
o
Average product exceeds marginal price.
o
marginal revenue exceeds marginal cost.
Question 2
Because of global warming, countries which are
cooler may see ________ in the supply of grain and agricultural products.
o
a shift to the right
o
a shift to the left
o
no change
o
a curve
Question 3
Demand is inelastic if:
o
the quantity demanded changes along with
the price.
o
the quantity demanded does not change
very much, even if the price changes dramatically.
o
the demand curves to the left.
o
the demand curves to the right.
Question 4
Eventually, a reduced-price hotel room will ______
the supply of hotel rooms in a market.
o
leave unchanged
o
increase
o
decrease
o
eliminate
Question 5
Higher income usually means:
o
a shift to the left on the demand curve.
o
a static change on the demand curve.
o
higher demand.
o
lower demand.
Question 6
Higher interest rates can cause the demand curve for
cars to:
o
shift to the right.
o
shift
to the left.
o
remain unchanged.
o
reach equilibrium price.
Question 7
How might a government cause a demand shift to the
right?
o
By increasing taxes on products
o
By decreasing taxes on products
o
By regulating supplies
o
By centralizing planning
Question 8
If financial aid were severely reduced, what would
happen to the quantity supplied by educational institutions?
o
The quantity supplied would increase.
o
The quantity supplied would remain
unchanged.
o
The quantity supplied would fall.
o
The change in quantity supplied would
cause the quantity demanded to increase.
Question 9
If interest rates go up for a given product,
quantity demanded is:
o
unchanged.
o
lowered.
o
increased.
o
represented by a demand curve shift to
the right.
Question 10
If you add too many inputs, a business may
experience:
o
increasing marginal revenue.
o
diminishing marginal product.
o
diminishing cost input.
o
accelerated product function.
Question 11
In a movement along the demand curve:
o
the demand schedule stays the same, as
do prices.
o
the demand schedule increases, as do
prices.
o
the demand schedule decreases, and
prices decrease.
o
the demand schedule stays the same, and
the price changes.
Question 12
Inferior goods experience _____ demand with
increased income.
o
higher
o
lower
o
no change in
o
sharp increases in
Question 13
Inputs to production do NOT include:
o
labor.
o
land.
o
average product.
o
business know-how.
Question 14
Inputs used by a business in the production process
include:
o
revenue.
o
profit.
o
labor.
o
cost.
Question 15
Marginal cost generally ________ with quantity
produced.
o
rises
o
decreases
o
stays the same
o
is not related
Question 16
Movies delivered over the Internet might have what
effect on movie theatres?
o
A demand shift to the right
o
A demand shift to the left
o
A supply shift to the left
o
No effect at all
Question 17
Output divided by the number of hours worked or by
the number of workers is called:
o
average input.
o
average product.
o
marginal product.
o
marginal revenue.
Question 18
Profit-making enterprises comprise ______ of all
employment in the United States.
o
95%
o
45%
o
75%
o
100%
Question 19
The added expense of producing one more unit of
output is called the:
o
marginal product.
o
marginal cost.
o
average cost.
o
production cost.
Question 20
The demand for automobiles:
o
is downward-sloping.
o
is upward-sloping.
o
shifts to the left.
o
is at equilibrium.
Question 21
The long-lived physical equipment and structures
that a business uses in its production process are called:
o
boot.
o
land.
o
capital.
o
function.
Question 22
The main objective of a business in a market economy
is:
o
profit maximization.
o
controlling costs.
o
decreasing revenue.
o
managing the production function.
Question 23
The price at which the quantity supplied equals the
quantity demanded is the:
o
market price.
o
equilibrium quantity.
o
equilibrium price.
o
satiation point.
Question 24
The technology and knowledge necessary for the
production process is called:
o
production input.
o
business know-how.
o
technology input.
o
knowledge input.
Question 25
What caused the decline in demand for Red Delicious
apples?
o
More varieties to choose from
o
Transportation issues
o
Consumers found them to be tasteless
o
Genetic manipulation scared consumers
Question 26
What is the difference between revenue and cost?
o
Production
o
Input
o
Output
o
Profit
Question 27
What word describes the goods and services that are
used to produce outputs for a business?
o
Production
o
Cost
o
Revenue
o
Inputs
Question 28
Which of the following is NOT an example of a normal
good?
o
Routine medical care
o
Housing
o
Motor vehicles
o
Trips abroad
Question 29
______ shows the potential cost for each level of
output.
o
The product function
o
The average marginal cost
o
The cost function
o
The production process
.
Question 30
_________ is the added cost to produce one more unit
of output.
o
Marginal product
o
Marginal revenue
o
Average cost
o
Marginal cost
USA 
India