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Econ 101 final exam a+

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ECON 101 Final Exam A+

Part 1 of 1 –

99.99999 Points

Question 1 of 20

4.45 Points

The representative firm in a purely competitive industry:

 A.Will always earn a profit in the short run

 B.May earn either an economic profit or a loss in the long run

 C.Will always earn an economic profit in the long run

 D.Will earn an economic profit of zero in the long run

Question 2 of 20

4.45 Points

An example of a monopolistically competitive industry would be:

 A.Steel

 B.Soybeans

 C.Electricity

 D.Retail clothing

Feedback: See page 275 – 276.

Question 3 of 20

4.45 Points

Firms in an industry will not earn long-run economic profits if:

 A.Fixed costs are zero

 B.The number of firms in the industry is fixed

 C.There is free entry and exit of firms in the industry

 D.Production costs for a given level of output are minimized

Feedback: See page 240.

Question 4 of 20

4.45 Points

Marginal product is:

 A.the increase in total output attributable to the employment of one more worker.

 B.the increase in total revenue attributable to the employment of one more worker.

 C.the increase in total cost attributable to the employment of one more worker.

 D.total product divided by the number of workers employed.

Feedback: See page 201.

Question 5 of 20

4.45 Points

The law of diminishing returns indicates that:

 A.as extra units of a variable resource are added to a fixed resource, marginal product will decline beyond some point.

 B.because of economies and diseconomies of scale a competitive firm’s long-run average total cost curve will be U-shaped.

 C.the demand for goods produced by purely competitive industries is downsloping.

 D.beyond some point the extra utility derived from additional units of a product will yield the consumer smaller and smaller extra amounts of satisfaction.

Feedback: See page 204.

Question 6 of 20

4.45 Points

If average total cost is declining, then:

 A.marginal cost must be greater than average total cost.

 B.the average fixed cost curve must lie above the average variable cost curve.

 C.marginal cost must be less than average total cost.

 D.total cost must also be declining.

Feedback: See page 208.

Question 7 of 20

4.45 Points

Average fixed costs diminish continuously as output increases.

 True

 False

Feedback: See page 208.

Question 8 of 20

4.45 Points

Patents and copyrights were established by the government to reduce oligopoly and monopoly power.

 True

 False

Feedback: See page 246 – 247.

Question 9 of 20

4.45 Points

A purely competitive firm is a price maker, but a monopolist is a price taker.

 True

 False

Feedback: See page 226.

Question 10 of 20

4.45 Points

The profit-maximizing rule MC = MR is followed by firms under:

 A.monopolistic competition, but not perfect competition.

 B.perfect competition, but not monopolistic competition.

 C.either monopolistic competition or perfect competition, depending on the costs of production.

 D.both monopolistic competition and perfect competition.

Feedback: Great job. See page 277.

Question 11 of 20

4.35 Points

A perfectly competitive firm will continue producing in the short run as long as it can cover its:

 A.total cost.

 B.average total cost.

 C.average variable cost.

 D.average fixed cost.

Feedback: Great work! See bottom of page 235.

Question 12 of 20

4.45 Points

A perfectly competitive firm will earn a profit and will continue producing the profit-maximizing quantity of output in the short run if price is:

 A.greater than marginal cost.

 B.less than marginal cost.

 C.less than average variable cost.

 D.greater than average total cost.

Feedback: Great work! See page 233.

Question 13 of 20

4.45 Points

Monopolistic competition is an industry characterized by:

 A.a product with many close substitutes.

 B.a horizontal demand curve.

 C.a small number of firms.

 D.barriers to entry and exit.

Feedback: Great work. See page 276.

Question 14 of 20

4.45 Points

If a perfectly competitive firm increases production from 10 units to 11 units, and the market price is $20 per unit, total revenue for 10 units is:

 A.$10.

 B.$20

 C.$200.

 D.$210.

Feedback: Very good. See page 230.

Question 15 of 20

4.45 Points

The demand curve facing a monopolist is:

 A.horizontal, the same as that facing a perfectly competitive firm.

 B.downward sloping, the same as that facing a perfectly competitive firm.

 C.upward sloping, the same as that facing a perfectly competitive firm.

 D.downward sloping, unlike the horizontal demand curve facing a perfectly competitive firm.

Feedback: Good work. See page 259.

Question 16 of 20

4.45 Points

Suppose that a monopolist increases production from 10 units to 11 units. If the market price declines from $30 per unit to $29 per unit, marginal revenue for the eleventh unit is:

 A.$1.

 B.$9.

 C.$19.

 D.$29.

Feedback: Good work. See page 260.

Question 17 of 20

4.45 Points

Most electric, gas, and water companies are examples of:

 A.unregulated monopolies.

 B.natural monopolies.

 C.restricted-input monopolies.

 D.sunk-cost monopolies.

Feedback: Good job. See page 254.

Question 18 of 20

4.45 Points

If a perfectly competitive firm is producing a quantity that generates P > MC, then profit:

 A.is maximized.

 B.can be increased by increasing the price.

 C.can be increased by decreasing the price.

 D.can be increased by increasing production.

Feedback: Great work! See page 233.

Question 19 of 20

10.0 Points

Evaluate the following statement using economic reasoning: “A monopolist can charge whatever she wants because she is the only source available.”

A monopolist can charge whatever she wants but even monopolist decrease their prices in order to sell more of the product. This is also a great example of why marginal revenue is under the demand curve in a monopolistic market! She can charge whatever she wants in for a while, but the market will inevitably force the constraints of supply and demand. Quickly after this, she will realize that she cannot charge whatever she sees fit.

Feedback: See the “Heads-Up!” section on page 263.

Question 20 of 20

10.0 Points

Identify and describe a real world example of an oligopoly. What characteristics of this market fit the definition of an oligopoly? What role does advertising play in this market? Is this consistent with what you’ve learned about advertising and oligopoly in this course?

     A great real world example of an oligopoly is the technology/Cell phone industry. Competing companies like Samsung, Apple, and Google, tend to rule the market. The top spot in their industry is revolving and they are all competing for it. “An oligopoly is Situation in which a market is dominated by a few firms, each of which recognizes that its own actions will produce a response from its rivals and that those responses will affect it” (Principles of Microeconomics, 283). Each company is in competition with each other and currently it seems to be cell phone leak season, the most recent Pixel from Google soon the next three companies will slowly leak or announce their new products. The galaxy S8 and the IPhone8 are the newest ones to be released. The key is that they all tend to have a new device entering the market either one right after the other or at the same time. As the products come to market the consumers have to choose either to brand loyalty or switch to the other side or stay with the least expensive option.

     “Firms in monopoly, monopolistic competition, and oligopoly use advertising when they expect it to increase their profits (Principles of Microeconomics, 290). In this oligopoly advertising, does not play a major role in this perfectly competitive market. “everyone knows that firms in each industry produce identical products, and buyers have complete information about the alternatives available to them in the market” (Principles of Microeconomics, 290).

     This is consistent with what we’ve learned about oligopoly and advertising. “Advertising creates consumer loyalty to a particular brand, then that loyalty may serve as a barrier to entry to other firms” (Principles of Microeconomics, 291).

Rittenberg&Tregarthen. (2012). Principles of Microeconomics

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July 1, 2023
    

 

1) Members of OSHA's $100,000 club have:

A) invested more than $100,000 in health and safety equipment for employees.

B) purchased health and safety insurance coverage of at least $100,000.

C) received fines of $100,000 or more for safety or health violations.

D) paid more than $100,000 in workers' compensation claims.

 

2) Workplace safety is a significant issue because approximately ________ employees were injured on the job in 2009.

A) 3,000,000

B) 1,000,000

C) 500,000

D) 250,000

 

3) According to the doctrine of contributory negligence, employers were:

A) not responsible for an employees' injury when another employee's negligence caused the injury.

B) not liable for an employee's injuries when that employee's own negligence caused the injury.

C) responsible for compensating employees for all work-related illnesses and accidents.

D) not responsible for any employees' injuries under any circumstances.

 

4) Workers' compensation laws vary by state, but all are built on the theory that:

A) employees' personal health insurance should pay the medical costs of any injuries.

B) work-related accidents are costs of doing business and should be paid for by employers.

C) governments are responsible for paying the medical costs related to an employee's injuries.

D) employers are not responsible for employee injuries resulting from the employee's own negligence.

5) Which of the following is a true statement about workers' compensation?

A) Workers' compensation laws are federally mandated and enforced by OSHA.

B) Non-union firms are not required to carry workers' compensation insurance.

C) Workers' compensation is not mandatory in all U.S. states.

D) Most states had workers' compensation programs by 1911.

 

6) Workers' compensation:

A) pays only if the worker cannot.

B) is considered a no-fault system.

C) is mandatory in all fifty states.

D) covers employees' medical costs with Medicaid.

 

7) The primary goal of state workers' compensation laws is best described as:

A) providing a means for injured workers to receive care and income without having to sue.

B) determining the cause of work-related accidents and minimizing future accidents.

C) ensuring that employers are not held responsible for accidents caused by worker negligence.

D) spreading the cost of workplace accidents among all workers in the state.

 

8) The ________ holds that employers are not held liable for an employee's injuries when the negligence of another employee contributed to or caused the accident.

A) doctrine of contributory negligence

B) fellow-servant rule

C) general duty provision

D) "no-fault" rule

9) Which of the following is most likely true?

A) Workers' compensation is a federal program. OSHA is the organization that helps individual states meet workers' compensation standards.

B) Workers' compensation is a federal program that provides compensation to employees injured on the job. OSHA is a federal program that creates and enforces safety standards in the work place.

C) OSHA is a federal program that creates safety standards for work environments. Workers' compensation programs are created by the individual states to provide compensation for employees injured on the job.

D) OSHA is a federal program that provides compensation for employees injured on the job. Workers' compensation programs are state programs that provide compensation for employees injured on the job.

 

10) Workers' compensation:

A) replaces the worker's entire income until he/she is able to work again.

B) provides benefits for permanent, but not temporary, impairment.

C) gives survivors burial allowances and income benefits.

D) covers medical expenses up to $100,000.

 

 

 

default image
July 1, 2023
    

 

1) Members of OSHA's $100,000 club have:

A) invested more than $100,000 in health and safety equipment for employees.

B) purchased health and safety insurance coverage of at least $100,000.

C) received fines of $100,000 or more for safety or health violations.

D) paid more than $100,000 in workers' compensation claims.

 

2) Workplace safety is a significant issue because approximately ________ employees were injured on the job in 2009.

A) 3,000,000

B) 1,000,000

C) 500,000

D) 250,000

 

3) According to the doctrine of contributory negligence, employers were:

A) not responsible for an employees' injury when another employee's negligence caused the injury.

B) not liable for an employee's injuries when that employee's own negligence caused the injury.

C) responsible for compensating employees for all work-related illnesses and accidents.

D) not responsible for any employees' injuries under any circumstances.

 

4) Workers' compensation laws vary by state, but all are built on the theory that:

A) employees' personal health insurance should pay the medical costs of any injuries.

B) work-related accidents are costs of doing business and should be paid for by employers.

C) governments are responsible for paying the medical costs related to an employee's injuries.

D) employers are not responsible for employee injuries resulting from the employee's own negligence.

5) Which of the following is a true statement about workers' compensation?

A) Workers' compensation laws are federally mandated and enforced by OSHA.

B) Non-union firms are not required to carry workers' compensation insurance.

C) Workers' compensation is not mandatory in all U.S. states.

D) Most states had workers' compensation programs by 1911.

 

6) Workers' compensation:

A) pays only if the worker cannot.

B) is considered a no-fault system.

C) is mandatory in all fifty states.

D) covers employees' medical costs with Medicaid.

 

7) The primary goal of state workers' compensation laws is best described as:

A) providing a means for injured workers to receive care and income without having to sue.

B) determining the cause of work-related accidents and minimizing future accidents.

C) ensuring that employers are not held responsible for accidents caused by worker negligence.

D) spreading the cost of workplace accidents among all workers in the state.

 

8) The ________ holds that employers are not held liable for an employee's injuries when the negligence of another employee contributed to or caused the accident.

A) doctrine of contributory negligence

B) fellow-servant rule

C) general duty provision

D) "no-fault" rule

9) Which of the following is most likely true?

A) Workers' compensation is a federal program. OSHA is the organization that helps individual states meet workers' compensation standards.

B) Workers' compensation is a federal program that provides compensation to employees injured on the job. OSHA is a federal program that creates and enforces safety standards in the work place.

C) OSHA is a federal program that creates safety standards for work environments. Workers' compensation programs are created by the individual states to provide compensation for employees injured on the job.

D) OSHA is a federal program that provides compensation for employees injured on the job. Workers' compensation programs are state programs that provide compensation for employees injured on the job.

 

10) Workers' compensation:

A) replaces the worker's entire income until he/she is able to work again.

B) provides benefits for permanent, but not temporary, impairment.

C) gives survivors burial allowances and income benefits.

D) covers medical expenses up to $100,000.

 

 

 

default image
July 1, 2023
    

 

 

61. The _____ is the tendency to recall the items at the beginning and end of a list more readily than those in the middle. 
A. halo effect
B. ambiguity effect
C. serial position effect
D. framing effect

62. Having a better memory for items at the beginning of a list demonstrates the _____, whereas having a better memory for items at the end of a list demonstrates the _____. 
A. recency effect/primacy effect
B. primacy effect/recency effect
C. flashbulb memory effect/metamemory effect
D. metamemory effect/flashbulb memory effect

63. George has just graduated from college and is going on his first big job interview. He has learned that there are 10 other applicants for the job. On account of information on the serial position effect that he learned in his psychology class, George asks to be either the first or the last candidate interviewed. Why? 
A. The serial position effect predicts that either the first or the last job applicant interviewed will be remembered better than the applicant interviewed second.
B. The serial position effect predicts that the candidate interviewed in the "middle" position will be viewed less favorably than the other two applicants.
C. Research has shown that the serial position effect is used often by management to arbitrarily hire job applicants.
D. Research has shown that people interviewed either early or late in the day are evaluated most positively.

64. According to the serial position effect, if you are a waiter trying to remember all the orders for a table of 7, you should pay particular attention to the _____ orders, because these are the ones you are most likely to forget. 
A. first and second
B. sixth and seventh
C. third, fourth, and fifth
D. first, third, and seventh

65. Multiple choice exams involve testing a student's _____ abilities, whereas essay exams involve testing _____ abilities. 
A. episodic memory/semantic memory
B. semantic memory/episodic memory
C. recall/recognition
D. recognition/recall

66. Asking an eyewitness to describe a suspect's physical appearance to a sketch artist would be an example of a _____ task, whereas asking an eyewitness to identify a suspect on the basis of a lineup of five possible assailants is an example of a _____ task. 
A. recognition/recall
B. recall/recognition
C. rehearsal/elaboration
D. chunking/rehearsal

67. Samantha prides herself on "never forgetting a face," although she frequently cannot put the correct name with a specific "face." Samantha is really saying that she _____. 
A. is better at recognition than at recall
B. is better at recall than at recognition
C. is better at memory retrieval than at memory reconstruction
D. is better at memory reconstruction than at memory recall

68. The memory of emotionally significant events that people often recall with more accuracy and vivid imagery than everyday events is known as _____. 
A. precognition
B. working memory
C. procedural memory
D. flashbulb memory

69. Elaine is writing a paper about reactions to the tragedy that occurred at the Twin Towers on September 11, 2001. She interviews ten of her classmates and asks them to remember that day. She is surprised to learn that nearly all of the students she interviewed offer very detailed, vivid accounts of where they were and what they were doing when they first learned of the terrorist attacks. Elaine has discovered that most of her classmates have _____ of September 11, 2001. 
A. a repressed memory
B. a flashbulb memory
C. implicit but not explicit memories
D. extrasensory perception

70. Motivated forgetting and repressed memories are usually associated with what type of memories? 
A. Factual information from studying
B. Traumatic memories
C. Sensory memories
D. Flashbulb memory

 

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