1.Which of the following situations would cause a decrease in supply in the market for computers?

a.The price of computer chips, an input to produce computers, increases

b.The price of computers decreases

c.Computers are a Normal Good and people's income increases

d.Printers are a complementary good and the price of printers decreases

2.If the Total Cost function is TC = 33Q^3 - 17Q^2 + 65Q + 30,000, what is the Variable Cost (VC) function?

A. VC = 33Q^2 - 17Q + 65 + 30,000/Q

B. VC = 33Q^3

C. VC = 33Q^3 - 17Q^2 + 65Q

D. VC = 30,000

3.Suppose the price of a kayak rental is $55, the price of a fishing license is $70, and the budget is $770. If kayak rentals are on the x-axis and fishing licenses are on the y-axis, what is the x-intercept for the Budget Line?

A.11

B.14

C.55

D.770

4.In the market for donuts, the price elasticity of demand is 1.27. If the price of textbooks increases by 10%, what is the percent change in the quantity demanded?

A.8.73%

B.7.87%

C.12.7%

D.Not enough information to determine

5.Suppose the production function is Q = 8L + 15K where Q is the quantity of output, L is the quantity of labor used in production, and K is the quantity of capital used in production. What can be said about this production function?

Group of answer choices

A.It has Decreasing Returns to Scale

B.It has Constant Returns to Scale

C.It has Increasing Returns to Scale

D.There isn't enough information to determine the Returns to Scale for this production function

6.Suppose the demand function is QD = 60,000 - 2,000P, and the supply function is QS = 4,000P - 6,000. What is the market clearing price?

A.$0

B.$6

C.$11

D.$2,000

7.Suppose you can either make computer chips or smartphone chips. If you produce computer chips, you earn a Total Revenue of $20 million and your Explicit Costs are $15 million. If you produce smartphone chips, you earn a Total Revenue of $25 million and your Explicit Costs are $21 million. What is the Accounting Profit (or Loss) of producing computer chips?

A.$0

B.$1 million

C.$4 million

D.$5 million

8.Suppose the Market Demand function is Q = 6,700 840P. The two firms in the market compete under Bertrand Competition. The Marginal Cost (MC) for the two firms are MC = $11.90. What is the market price at the Nash Equilibrium?

A.$11.90

B.$23.80

C.$840

D.$6,700

9.The Price Elasticity of Demand for a good is 1.32. Which of the following describes the Price Elasticity of Demand?

A.Elastic

B.Inelastic

C.Unit elastic

D.Perfectly elastic

10.Suppose the price of a kayak rental is $55, the price of a fishing license is $70, and the budget is $770. If kayak rentals are on the x-axis and fishing licenses are on the y-axis, what is the y-intercept for the Budget Line?

A.11

B.14

C.70

D.770

11.The price of popsicles, a substitute for ice cream, increases. What happens in the market for ice cream?

A.Supply decreases

B.Supply increases

C.Demand decreases

D.Demand increases

12.If the Total Cost function is TC = 33Q^3 - 17Q^2 + 65Q + 30,000, what are the Fixed Costs (FC)?

A.FC = 30,000

B.FC = 33

C.FC = 65

D.FC = 33Q^3

13.Which of the following would increase the demand for labor?

A.There's an increase in the number of workers

B.The price of the output good increases

C.The substitution effect makes leisure more expensive as wages increase

D.Leisure is a normal good and the income effect occurs when wages change

14.Suppose, under Perfect Competition, firms are earning an economic profit in the Short-Run. What will happen in the Long-Run?

A.Firms will enter the industry in the Long-Run

B.There will be no change in the number of firms in the industry in the Long-Run

C.Some firms will exit the industry in the Long-Run

D.There isn't enough information to determine what will happen in the Long-Run

15.You're dreaming of what to do during a nice summer day. You could mow the lawn which you would pay someone $15 to do for you. You could go for a walk which you value at $11. You could also take a nap and ignore everyone and everything else which you would pay $29 to do. If you to take a nap, what is your opportunity cost?

A.$29

B.$26

C.$15

D.$11

16.Suppose sunscreen is on the x-axis and sunglasses are on the y-axis. If the price of sunscreen decreases, how does this affect the budget line?

A.The budget line undergoes a parallel shift outward

B.The budget lines undergoes a parallel shift inward

C.The budget lines rotates outward

D.The budget lines rotates inward

17.If people expect the price of houses to increase next month, what happens to the demand for houses this month?

A.Demand increases

B.Demand does not change

C.Demand decreases

D.Not enough information to determine

18.Consider the bundle of (5 Apples, 4 Bananas) on an Indifference Curve. If Apples are on the x-axis, Bananas are on the y-axis, the Marginal Utility of Apples for that bundle is 2.5, and the Marginal Utility of Bananas for that bundle is 4, what is the slope of the Indifference Curve at that point?

A.1

B.0.8

C.0.625

D.Not enough information to determine

19.Consider a firm in a Perfectly Competitive industry. Suppose the price in this industry is $22. The total cost (TC) function for each firm is TC = 0.1q^2 + 120. If the marginal cost (MC) function for the firm is MC = 0.2q, what is the profit maximizing quantity for the firm to produce?

A.0

B.22

C.110

D.120

20.The Price Elasticity of Demand for a good is 0.76. Which of the following describes the Price Elasticity of Demand?

A.Elastic

B.Inelastic

C.Unit elastic

D.Perfectly elastic

21.Suppose the price of a donut is $2.50, the price of a cinnamon roll is $3.20, and the budget is $50. Donuts are on the x-axis and cinnamon rolls are on the y-axis. If the price of a donut increases to $3.30, what happens to the Budget Line?

A.The budget line undergoes a parallel shift outward

B.The budget lines undergoes a parallel shift inward

C.The budget lines rotates outward

D.The budget lines rotates inward

22.Suppose the production function is Q = 0.015LK where Q is the quantity of output, L is the quantity of labor used in production, and K is the quantity of capital used in production. What can be said about this production function?

A.It has Decreasing Returns to Scale

B.It has Constant Returns to Scale

C.It has Increasing Returns to Scale

D.There isn't enough information to determine the Returns to Scale for this production function

23.Suppose when a person's income increases, his or her demand for mac and cheese decreases. What is the relationship between mac and cheese and income?

A.Mac and cheese are Substitutes

B.Mac and cheese are a Normal good

C.Mac and cheese are an Inferior good

D.Mac and cheese are unaffected by changes in income

24.Consider a Monopoly. Suppose the Demand function for the industry is Q = 12,000 900P. The total cost (TC) function for the firm is TC = 0.11Q^2 + 3,300. The marginal revenue (MR) function is then MR = 13.333 - 0.0022Q. If the marginal cost (MC) function for the firm is MC = 0.22Q, what is the profit maximizing quantity for the firm to produce?

A.0

B.60

C.3,300

D.12,000

25.Which of the following would cause an increase in demand in the market for yoga pants?

A.The price of jeans, a substitute good, decreases

B.The price of synthetic fibers, an input used to make yoga pants, decreases

C.The price of yoga pants decreases

D.The price of yoga mats, a complementary good, decreases