Money and time

Quiz

Note: It is recommended that you save your response as you complete each question.

Question 1 (1 point)
Question 1 Saved

Let’s say that you want to open your own Italian restaurant. Which of the following is an example of inputs of your production process?

Question 1 options:

a)

Money and time

b)

Pasta dishes

c)

Ingridients, building, cooks, and the time managing your restaurants

d)

All of the above
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Question 2 (1 point)
Question 2 Saved

Let’s say that you want to open your own Italian restaurant. Which of the following is an example of your output?

Question 2 options:

a)

Profit

b)

Happy customers

c)

Pasta dishes

d)

All of the above
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Question 3 (1 point)
Question 3 Saved

When marginal revenue equal marginal cost it means that

Question 3 options:

a)

Your Italian restaurant is profitable

b)

You are charging the most efficient price

c)

You are producing the quantity which maximizes your profit

d)

All of the above
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Question 4 (1 point)
Question 4 Saved

Over the past 30 years, technological advancements have reduced the cost of computer chips. Which of the following mechanism describes the effect of lower computer chips prices on computer software?

Question 4 options:

a)

Supply of computers increased thus computers are now less expensive. Computers and computer software are complements, so demand for computer software increased.

b)

Supply of computers increased thus computers are now less expensive. Computers and computer software are substitutes, so demand for computer software decreased.

c)

Demand for computers increased thus computers are now less expensive. Computers and computer software are complements, so demand for computer software increased.

d)

Demand for computers increased thus computers are now less expensive. Computers and computer software are complements, so supply of computer software increased.
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Question 5 (1 point)
Question 5 Saved

Suppose that in the year 2015 the number of births is temporarily high. How does this baby boom affect the price of babysitting services in 2020 and in 2030? (hint: 5-year-olds need babysitters, whereas 15-year-olds can be babysitters).

Question 5 options:

a)

Demand for babysitters increased in 2020 and supply of babysitters increased in 2030. Thus, the price increased in 2020 and decreased in 2030

b)

Demand for babysitters increase in 2020 creating a shortage while supply of babysitters increased in 2030 creating a surplus

c)

Demand for babysitters increased in 2020 and supply of babysitters increased in 2030. Thus, the price decreased in 2020 and increased in 2030

d)

There were not enough babysitters in 2020 and too many in 2030
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Question 6 (1 point)
Question 6 Saved

You are thinking of opening a hardware store. You estimate it will cost $30,000 a year to rent a storefront and $50,000 to renovate and purchase equipment. You will also have to quit your current job which pays $40,000 a year.

Question 6 options:

a)

Your explicit cost equal to $30,000 and your implicit cost equal to $90,000

b)

Your explicit cost equal to 80,000 and your implicit cost equal to $40,000

c)

Your explicit cost equal to $40,000 and your implicit cost equal to $80,000

d)

None of the above is correct.
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Question 7 (1 point)
Question 7 Saved

You are thinking of opening a hardware store. You estimate it will cost $30,000 a year to rent a storefront and $50,000 to renovate and purchase equipment. You will also have to quit your current job which pays $40,000 a year. If you calculate that your revenue in the first year will be $100,000, then which of the following statements is correct?

Question 7 options:

a)

Economic profit is higher than accounting profit

b)

Economic profit is negative

c)

Accounting profit is negative

d)

You should open your own hardware store.
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Question 8 (1 point)
Question 8 Saved

The table above illustrates quantities supply and demanded for flashlights. Which of the following statements is true?

Question 8 options:

a)

The law of the demand does not hold for this market

b)

The law of the supply does not hold for this market

c)

The equilibrium price is $3 and the equilibrium quantity is 100 units

d)

The equilibrium price and quantity cannot be determined with a given information.
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Question 9 (1 point)
Question 9 Saved

The table below illustrates quantities supply and demanded for flashlights. If the current price is $2, then

Question 9 options:

a)

The market is in equilibrium

b)

There is a shortage and as a result the price will increase

c)

There is a surplus and as a result the price will decrease

d)

The market equilibrium quantity is 120 units
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Question 10 (1 point)
Question 10 Saved

The perfectly competitive market is one

Question 10 options:

a)

With many buyers and sellers and almost identical product

b)

With a few buyers and sellers and almost identical product

c)

With one seller and many buyers

d)

With many buyers and sellers and identical product
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Question 11 (1 point)
Question 11 Saved

The barriers to entry exist in which type of the market?

Question 11 options:

a)

Monopolistic competition

b)

Perfect competition

c)

Monopoly

d)

All of the above
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Question 12 (1 point)
Question 12 Saved

When demand increases

Question 12 options:

a)

Supply also increases

b)

Equilibrium price increases

c)

There is a shortage

d)

All of the above
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Question 13 (1 point)
Question 13 Saved

Which of the following is not a reason for monopoly existence

Question 13 options:

a)

Barriers to entry

b)

Government protection in form of a patent or a copyright

c)

Single firm owns a key resource

d)

All of the above are the reasons for monopoly existence
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Question 14 (1 point)
Question 14 Saved

Market for delivery pizza is most likely a

Question 14 options:

a)

Perfectly competitive market

b)

Monopolistically competitive market

c)

Oligopoly

d)

Monopoly
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Question 15 (1 point)
Question 15 Saved

When bagels becomes cheaper,

Question 15 options:

a)

Demand for cream cheese increases and price of cream cheese decreases

b)

Demand for cream cheese increases and price of cream cheese increases

c)

Demand for bagels decreases and price of bagels increases

d)

Demand for bagels increases and price of bagels increases
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Question 16 (1 point)
Question 16 Saved

Which of the following will shift Supply curve to the left?

Question 16 options:

a)

More sellers in the market

b)

Better technology

c)

Higher input prices

d)

Increase in the price of complement products
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Question 17 (1 point)
Question 17 Saved

If the price is too high then

Question 17 options:

a)

There will be more buyers in the market than sellers

b)

There will be a shortage of products

c)

The quality of product is going to be very low

d)

Price will eventually drop to equilibrium price
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Question 18 (1 point)
Question 18 Saved

As product becomes more popular, than

Question 18 options:

a)

Demand increases and the price increases as well

b)

Demand decreases as the product is also expensive now

c)

Supply increases to accommodate for increase in demand

d)

All of the above are possible
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Question 19 (1 point)
Question 19 Saved

In Oligopolistic market

Question 19 options:

a)

Firms produce more than in Monopoly

b)

Firms produce less than in perfectly competitive market

c)

Firms charge more than in perfectly competitive market

d)

All of the above
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Question 20 (1 point)
Question 20 Saved

Profit equals to

Question 20 options:

a)

Revenue minus cost

b)

Revenue plus cost

c)

Revenue minus price

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