Microeconomics 2

50問 • 7ヶ月前

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A decrease in the price of coffee from $5.00 per cup to $4.50 per cup leads to an increase in quantity demanded from 200 cups to 230 cups. The price elasticity of demand for coffee is:

1.5

What is the budget line in microeconomics?

The graphical representation of all possible combinations of two goods that a consumer can purchase, given their income and the prices of those goods

If a consumer has a budget of $75 and they are choosing between two goods, Good X (priced at $10) and Good Y (priced at $5), which of the following represents a combination of who spends the entire income?

5 units of Good X and 5 units of Good Y

If a consumer has a budget of $60 and the prices of two goods are $20 for Good A and $30 for Good B, what is the maximum amount of Good A the consumer can afford if they buy no Good B?

3 units

Suppose a consumer has a budget of $100 and faces the following prices: $10 for Good X and $20 for Good Y. Which of the following represents the budget constraint?

10X + 20Y = 100

If a consumer chooses a combination of goods that lies inside their budget constraint, what can be said about their consumption?

They are not fully utilizing their income

In a two-good world, if a consumer's income increases from $50 to $60, while the prices of the goods remain the same, what happens to the budget constraint?

It shifts outward

Which of the following best describes the concept of 'budget line' in microeconomics?

A line that shows all possible combinations of goods a consumer can afford with a fixed income and given prices

What is the concept of marginal utility?

The additional satisfaction from consuming one more unit of a good

According to the law of diminishing marginal utility, as a person consumes more of a good, the marginal utility:

Decreases with each additional unit

Which of the following is true about total utility?

Total utility increases as long as marginal utility is positive

The point at which total utility reaches its maximum is when:

Marginal utility is zero

Which of the following is an example of a diminishing marginal utility?

A person feels less satisfied with each additional slice of pizza eaten

If a consumer’s marginal utility per dollar spent is higher for good X than for good Y, the consumer will:

Purchase more of good X and less of good Y to maximize total utility

The Marginal Rate of Substitution (MRS) represents:

The rate at which one good can be substituted for another while maintaining the same level of utility

If the Marginal Rate of Substitution between two goods is 4, this means:

You are willing to give up 4 units of one good to gain 1 unit of the other good

The Marginal Rate of Substitution between two goods is 1:1. This indicates that:

The consumer is willing to give up 1 unit of one good to get 1 unit of the other good

If the price of coffee increases, and as a result, the demand for tea increases, what type of relationship do coffee and tea have?

Substitutes

When the price of peanut butter rises, the demand for jelly decreases. This suggests that peanut butter and jelly are:

Complements

If two goods are substitutes, a price increase in one good will likely cause:

An increase in demand for the other good

Which of the following scenarios represents two goods that are complements?

A decrease in the price of laptops causes an increase in demand for laptop accessories

If two goods are perfect substitutes, the consumer will:

Buy only one of the goods based on the lower price

What does 'marginal utility' refer to in economics?

The satisfaction gained from consuming an additional unit of a good or service

If the marginal utility of a good is negative, what does this imply?

The consumer is experiencing dissatisfaction from consuming the good

If the marginal utility of a product is 0, what is the impact on total utility?

Total utility is maximized, and any more consumption will decrease satisfaction

When does total utility reach its maximum level?

When Marginal Utility is zero

Which of the following best explains the diamond-water paradox?

Diamonds are rare and have a high marginal utility in comparison to their total abundance

What is the consumer surplus?

The difference between what consumers are willing to pay and what they pay

If the price of a good increases from $10 to $15, what happens to the consumer surplus?

It decreases

What is productivity in the context of economics?

The level of output produced per unit of input used

Which of the following is not a factor that typically affects productivity?

The price level of goods and services

Which of the following is an example of a microeconomic issue?

The pricing strategy of a smartphone company

Which of the following is not considered a factor of production?

Technology

What is the factor of production that refers to the human effort, skills, and labor used in the production process?

Labor

Which factor of production includes natural resources such as minerals, water, and fertile land?

Land

Which of the following best describes capital as a factor of production?

Machines, tools, and buildings used in production

What is an example of fixed capital?

Machinery used in production

Which of the following is considered circulating capital?

Raw materials

Which of the following is true about circulating capital?

It is consumed and replaced regularly in the production process

Which of the following statements is true regarding the difference between fixed and circulating capital?

Fixed capital does not get used up in the production process, whereas circulating capital does

If the total product is 100 units when 10 workers are employed, and the total product increases to 120 units with 12 workers, what is the average product of labor with 12 workers?

10 units

What does the marginal product of labor refer to?

The change in total output resulting from an additional unit of labor

Which of the following best defines the law of diminishing returns?

Increasing the amount of one factor of production while keeping others constant will initially lead to higher returns, but after a certain point, additional units of that factor will yield progressively smaller returns

How can a firm avoid the negative effects of the law of diminishing returns?

By increasing the use of capital along with labor to maintain efficient production

Which of the following is considered a variable cost in production?

Raw materials used in production

Fixed costs are costs that:

Remain constant regardless of production levels

Economies of scale occur when:

The cost per unit decreases as production volume increases

If a firm produces 100 units of output and its total cost is $1,000, what is the average cost per unit?

$10

Which of the following is an example of a firm experiencing economies of scale?

A large car manufacturer reduces its per-unit production cost by investing in automated machinery

What does the break-even point represent in microeconomics?

The point where total revenue equals total costs

Plumbing Arithmetic Terms 5

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Plumbing Arithmetic Terms 5