Question # 1

An increase in the discount rate at the FED generally has the following effect on bond prices.

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There is no demonstrated effect

Such an increase tends to lower bond prices.

Such an increase tends to raise bond prices

Bond prices are related to the government purchase and sale of bonds.

Firm A's margin of safety is.

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0.10

0.40

0.20

0.30

Under perfect competition, the price system automatically result in efficient output selection when

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MC = MR

MC = MU

P = ATC

P > AVC

A firm that is a price taker faces a perfectly

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Elastic supply curve

Inelastic demand curve

Elastic demand curve

In elastic supply curve

When economists say that a per son is economizing they mean that the person is.

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making choices to gain benefits at lowest possible cost

Making a lot of money

Purchasing goods that are generic cheap or of low quality

Learning how to run a business more effecitively

Economists tend to disagree primarily about.

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The implications of scarcity for our economy

Which resources are free

Topics in positive economics

Issues of normative economics

"Principles of economics" is the book of

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Robbins

Adam smith

Hicks

Marshall

An income demanded curve of an inferior good is.

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Same in slope

Upward is slope

Downward in slope

None of these

As long as the principle of diminishing marginal utility is operating any increased consumption of a good.

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Lowers total utility

Produces negative total utility

Lowers marginal utility and therefore total utility

Lowers marginal utility, but may raise total utility.

Disposable income is equal to.

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National income

National income minus taxes plus transfers

Real GDP

National income Minus taxes

When the demand curve is a straight line the elasticity of demand at the center point will be.

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Equal to zero

infinite

More than one

Equal to one

"Treating an individual as typical of a group" in the definition of.

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Pure discrimination human capital

Statistical discrimination

Human capital

Specific skills

Given the above demand and supply equations for widgets, the equilibrium price and quantity is.

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P = Rs. 20, Q = 60

PO = Rs. 60, Q, = 20

P Rs. 35, Q = 45

P - Rs. 12, Q = 88

Perfect competition implies

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Homogeneous goods

Inferior goods

Superiors goods

Differential goods

The demand for labor will be more elastic if

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There are few substitutes for labor

There is a shor time under consideration

Labor is a large percent of the total cost of production

The demand for the product is relatively inelastic

The competitive firm maximizes its profit by operating where

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Average costs are at a minimum

Total revenue is at a maximum

Profit per unit is at a maximum

Marginal cost equals price

The tax is question 52 is

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Progressive's

Regressive

Proportional

None of these

A typical demand curve cannot be

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Rising upwards to the right

A straight line

Concave to origin

Convex to origin

Cross -elasticity following commodities is very high

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Compliments

Normal

Goods substitutes

Good compliments

In contract to perfectly competitive markets monopolists

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Do no have to worry about market demand

Sell only if demand is inelastic

Can never incur an economic loss

Can earn an economic profit indefinitely

If average fixed cost is 40 and average variable cost is 80 for a given output we the know that average total cost is.

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40

¹²⁰

80

None of the above

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