need help with with in 2 1/2 hours Document Preview: 1. (TCO 1) As a consequence of the problem of scarcity (Points : 4) there is never enough of anything.individuals have to make choices from...

1. (TCO 1) As a consequence of the problem of scarcity (Points : 4)
there is never enough of anything.
individuals have to make choices from among alternatives.
production has to be planned by government.
things which are plentiful have relatively high prices.
2. (TCO1) Which of the following is considered to be an entrepreneur? (Points : 4)
Self-employed person
MBA graduate hired by a firm to be its CEO
Production-line worker
Customer of a firm
3. (TCO1) A point on the production possibilities curve is (Points : 4)
attainable and resources are fully employed.
attainable, but resources are unemployed.
unattainable, but resources are unemployed.
unattainable and resources are fully employed.
4. (TCO1) Which would not be characteristic of a capitalist economy? (Points : 4)
Government ownership of most factors of production
Competition and unrestricted markets
Reliance on the market system
Freedom of enterprise and choice
5. (TCO 2) The demand curve is a representation of the relationship between the quantity of a product
demanded and (Points : 4)
supply.
wealth.
price.
income.
6. (TCO 2) What combination of changes would most likely decrease the equili
ium price? (Points : 4)
When supply decreases and demand increases
When demand increases and supply increases
When demand decreases and supply decreases
When supply increases and demand decreases
7. (TCO 2) You are the sales manager for a software company and have been informed that the price
elasticity of demand for your most popular software is less than one. To increase total revenues, you
should (Points : 4)
increase the price of the software.
decrease the price of the software.
hold the price of the software constant.
increase the supply of the software.
8. (TCO 2) The price elasticity of demand increases with the length of the period considered because
(Points : 4)
consumers' incomes will increase over time.
the demand curve will shift outward as time passes.
all prices will increase over time.
consumers will be better able to find substitutes.
9. (TCO 2) A purely competitive firm's output is such that its marginal cost is $4 and marginal revenue is
$5. Hint: remember that MR = P for Pure Competition and the Profit Maximizing rule. Assuming profit
maximization, the firm should (Points : 4)
cut its price and raise its output.
aise its price and cut output.
leave price unchanged and raise output.
leave price unchanged and cut output.
10. (TCO 2) Which would definitely not be an example of price discrimination? (Points : 4)
A theater charges children less than adults for a movie.
Universities charge higher tuition for out-of-state residents.
A doctor charges for services according to the income of patients.
An electric power company charges less for electricity used during off-peak hours when
production costs are lower.
11. (TCO 3) A major reason that firms form a cartel is to (Points : 4)
educe the elasticity of demand for the product.
enlarge the market share for each producer.
minimize the costs of production.
maximize joint profits.
12. (TCO 3) The main difference between the short run and the long run is that (Points : 4)
firms earn zero profits in the long run.
the long run always refers to a time period of one year or longer.
in the short run, some inputs are fixed.
in the long run, all inputs are fixed.
13.
(TCO 4) Refer to the diagram. The phases of the business cycle from points A to D are, respectively:
Graph Description
(Points : 4)
Peak, recession, expansion, trough
Trough, recovery, expansion, peak...