Economic midterm

SST. Charles Hospital, located in an upper-income likeness of a large city, recently get a restored mansion as a gift from an appreciative patient. The board of directors resolute to remodel the mansion and use It as recuperative quarters for patients allowing to indemnify a premium for luxurious accommodations. The follow to the hospital of employ the mansion includes Selected firmness of purpose d. Both b and c oppugn 2 O out of 0. 5 points Which of the by-line statements Is false? Selected resoluteness c. D If economic emolument is positive, story profit must also be positive. doubtfulness 3Economic profit is the surpass measure of a firms performance because the opportunity approach of using ALL resources Is subtracted from total revenue. psyche 4 Mallory decides to spend three mos working(a) overtime rather than watching a delineation with her friends. She earns $8 an hour. Her opportunity address of working is the enjoyment she would confirm received had s he watched the video. question 5 Russell spends an hour perusal or else of playing tennis. The opportunity equipment casualty to him of studying is Selected resolution c. The enjoyment and exercise he would shoot received had he compete tennis. OF 22 Economic profit Selected dissolver a. Al never exceed accounting profit. appargonnt motion 7 Bee is opening her aver court-reporting business. She financed the business by withdrawing money from her in-person savings account. When she closed the account, the bank model mentioned that she would assume earned $300 in interest next year. If Bee hadnt opened her consume business, she would have earned a compensation of $25,000. In her first year, Bees revenues were $30,000. Which of the followers statements is patch up? Selected result c. B Bees total distinct constitutes are $25,300. dubiety 8 ideate that the firms only variable stimulation is labor.When 50 workers are used, the aver epoch proceeds of labor is 50 an d the bare(a) growth of labor is 75. The wage rate is $80 and the total greet of the fixed remark is $500. What is average variable cost? Selected Answer b. $1. 60 challenge 9 excogitate that you run a house-painting company and before long have 2 workers painting a total of 4 houses per month. If you hire a third worker, 6 houses can be painted per month. If you hire a quaternate worker, 9 houses can be painted, and a fifth and sixth worker forget increment the number of houses painted to 13 and 15, respectively. Diminishing returns Selected Answer set in when the sixth worker is hired. interrogative sentence 10 When marginal cost is rising, average variable cost Selected Answer a. D must be rising. Lorrys Lunchmeats is a humbled street vender business. If Larry makes 15 pretzels in his first hour of business and incurs a total cost of $16. 50, his average total cost per pretzel is $1. 10. skepticism 12 At all levels of action higher than the point where the marginal cost curve crosses the average variable cost curve, average variable cost rises. drumhead 13 Teachers Helper is a small company that has a subcontract to garden truck instructional materials for disabled children in unexclusive school districts.Then the Selected Answer b. A enquire 18 Consumer otiose all of the preceding(prenominal) promontory 19 Suppose a frost destroys much of the Florida chromatic tree corp.. At the homogeneous time, suppose consumer tastes shift toward orange Juice. What would we expect to happen to the remainder price and meter in the market for orange Juice? Price will increase, quantity is indeterminate (may increase or decrease). Question 20 You lose your cable and, as a result, you vitiate fewer chat up novels. This shows that you consider romance novels to be a(n) Selected Answer c. A luxury good.Question 21 Consumer surplus is the amount a buyer is spontaneous to support for a good negative the amount the buyer actually pays for it. Quest ion 22 Which cell in the following table represents an increase in symmetricalness quantity and an indeterminate change in equilibrium price? An Increase in Supply An Increase in command A A Decrease in Supply Selected Answer b. D c Question 23 An example complete price floor is Selected Answer a. B rent figure. Question 24 Which of these statements best represents the law of call for? When the price of a good decreases, buyers purchase to a greater extent of the good.Question 25 In the housing market, rent control causes quantity supplied to fall and quantity demanded to rise. Question 26 If the market price of orchis rises at the same time as the market quantity of eggs researches decreases, this could have been caused by a decrease in write out with no change in demand. Question 27 Question 28 Use the following demand and translate functions to answer the following question exact Q = 50 UP supply SQ = 20 + UP If the price is $10, there is a surplus of 30 units. Question 29 Which of the following will cause an increase in consumer surplus? Technological improvement in the production of the good Question 30 Suppose you are in charge of setting prices at a local sandwich shop. The business need to increase its total revenue and your Job is on the line. If the demand for sandwiches is elastic, you Selected Answer d. C should not change the price of sandwiches. Question 31 Merrills income elasticity of demand for football tickets is 1. 50. All else equal, this means that if her income increases by 20 share, she will buy 30 percent more football tickets.Question 32 Which of the following could be the cross-price elasticity of demand for ii goods that are complements? Question 33 Selected Answer d. B demand is inelastic and supply is elastic. Question 34 When we move up and to the left along a linear, downward-sloping demand curve, price elasticity of demand Selected Answer b. C always becomes smaller. Question 35 When the price of bubble gumwood wood is $0. 50, the quantity demanded is 400 packs per day. When the price travel to $0. 40, the quantity demanded increases to 600.Given this information and using the meat method, we know that the demand for bubble gum is elastic. Question 36 At age 40, Joe is considering quitting his Job and going back for a college degree. He needs two more years full-time. Tuition is $10,000 per year. He earns $30,000 per year. A college degree would raise his annual income by $10,000 per year. He will retire at age 70. From an investment standpoint, Joe will go back full-time if Selected Answer a 10,000 x 40,000 x Question 37 Martha and Sarah have the same preferences and incomes. precisely as Martha arrived at the theater to see a play, she detect that she had lost the $10 ticket she had purchased earlier. Sarah Just arrived at the theater planning to buy a ticket to see the same play when she discovered that she had lost a $10 bill from her wallet. If both Martha and Sarah are rational a nd both still have enough money to pay for a ticket, which one of the following statements is correct? Martha and Sarah will take the same action (either to pay for another ticket or not to ay) because the ticket lost or $10 lost is a sunk cost and it should not factor into their decisions.Because bagels and thrash quit are often eaten together, they are complements. Suppose we mention that the equilibrium price of filling cheese has risen but the equilibrium quantity of bagels has fallen. Which of the following explanations is consistent with these changes in the bagels and cream cheese markets? Price of milk increased. Question 39 complements. Suppose we observe that both the equilibrium price of cream cheese and the equilibrium quantity of bagels have increased. Which of the following Price of flour decreased.