1. The role of __________ in the production process is central to why our country is rich and most of the rest of the world is poor.
2. A demand curve that is perfectly horizontal is:
3. Losses are minimized:
when at the minimum point on the average total cost curve.
when at the minimum point on the average variable cost curve.
where marginal cost equals marginal revenue.
when total revenue is maximized
4. A monopolistically competitive industry has:
many firms producing a differentiated product.
many firms producing an identical product.
a few firms producing a differentiated product.
a few firms producing an identical product.
5. Which statement is true?
Stores charge high prices because they have to pay high rents.
A firm’s demand for land is derived from a firm’s MRP curve for land.
The supply of land varies from year to year.
None of the statements are true.
6. The completion of the American national railroad network in the second half of the 19th century led to all of the following EXCEPT:
that it enabled manufacturers to sell their products all over the country.
increased prices of goods sold which led to more investment and more jobs.
7. Price is determined:
mainly by demand.
mainly by supply.
equally by demand and supply.
by neither supply nor demand.
8. The reason U.S. workers were better paid than foreign workers during the 1950s and 1960s is:
U.S. workers were better trained and educated.
U.S. workers worked harder.
the U.S. dollar was the world’s strongest currency.
we had more capital (plant and equipment) per worker.
9. If Bart’s money wages doubled from 2013 to 2018 and the consumer price index rose by 50%, we would know that Bart’s real wages:
fell by 50%.
stayed about the same.
rose by less than 50%.
10. The additional revenue obtained by selling the output produced by one more unit of a resource is its:
marginal physical product.
marginal revenue product.
average revenue product.