BUS 1103 Microeconomics - Term 3, 2018-2019: BUS 1103 - AY2019-T3 ► 7 March - 13 March ► Graded Quiz Unit 6. All Correct Answers Indicated.

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Question 1 Correct Mark 1.00 out of 1.00 Started on Saturday, 9 March 2019, 11:43 AM State Finished Completed on Saturday, 9 March 2019, 12:10 PM Time taken 27 mins 45 secs Marks 20.00/20.00 ... Grade 100.00 out of 100.00 Given the individual demand functions in the table below, what is the market demand at price P1? Prices A's Demand B's Demand C's Demand D's Demand P1 9 7 1 7 P2 10 10 2 11 P3 11 12 3 14 Select one: a. 32 b. 10 c. 24 d. 26 e. 33 BUS 1103 Microeconomics - Term 3, 2018-20192019/3/31 Graded Quiz Unit 6 https://my.uopeople.edu/mod/quiz/review.php?attempt=1725432&cmid=164485 2/12 Question 2 Correct Mark 1.00 out of 1.00 Question 3 Correct Mark 1.00 out of 1.00 Question 4 Correct Mark 1.00 out of 1.00 A Õrm that is producing at the lowest possible average cost is always: Select one: a. Earning an economic proÕt. b. Productively eÞcient c. Dominating the other Õrms in the market d. Not producing enough output The correct answer is: Productively eÞcient A Õrm in a perfectly competitive industry has Select one: a. A perfectly elastic supply curve b. A perfectly elastic demand curve c. A negatively sloped demand curve d. A positively sloped demand curve The supply curve for a perfect competitor is its: Select one: a. Marginal Revenue Curve b. ATC curve c. MC curve d. MC curve above its AVC curve https://my.uopeople.edu/mod/quiz/review.php?attempt=1725432&cmid=164485 3/12 Question 5 Correct Mark 1.00 out of 1.00 A perfectly competitive Õrm that is receiving a price of $5 and has a marginal cost of $6 should always Select one: a. drop out of the industry b. decrease its output c. increase its price d. increase its output https://my.uopeople.edu/mod/quiz/review.php?attempt=1725432&cmid=164485 4/12 Question 6 Correct Mark 1.00 out of 1.00 What does the above graph represent? Select one: a. An increase in the price of Good X. b. An increase in the price of Good Y. c. A decrease in the price of Good X. d. A decrease in the price of Good Y. e. Unattainable consumption. https://my.uopeople.edu/mod/quiz/review.php?attempt=1725432&cmid=164485 5/12 Question 7 Correct Mark 1.00 out of 1.00 On the above graph, what does the red point “B” represent? Select one: a. Suboptimal and attainable consumption b. Optimal and attainable consumption c. Optimal but not attainable consumption d. Suboptimal and unattainable consumption e. None of the above https://my.uopeople.edu/mod/quiz/review.php?attempt=1725432&cmid=164485 6/12 Question 8 Correct Mark 1.00 out of 1.00 Question 9 Correct Mark 1.00 out of 1.00 Based on the table below, P1 and P2 indicate the prices of Good 1 and Good 2, respectively. If a consumer consumes a bundle of 3 units of Good A and 3 units of Good B and has no money left over, what is the consumer’s budget constraint? Good A P1 = 1 Good B P2 = 2 Quantity Total Utility Quantity Total Utility 1 20 1 9 2 30 2 29 3 39 3 39 4 46 4 43 5 50 5 44 Select one: a. 0 b. 3 c. 6 d. 9 e. 12 Which of the following is not a valid option for a perfectly competitive Õrm? Select one: a. Increasing its output b. Decreasing its output c. Increasing its price d. Increasing its resources https://my.uopeople.edu/mod/quiz/review.php?attempt=1725432&cmid=164485 7/12 Question 10 Correct Mark 1.00 out of 1.00 Question 11 Correct Mark 1.00 out of 1.00 Question 12 Correct Mark 1.00 out of 1.00 A perfectly competitive Õrm should always: Select one: a. Earn an economic proÕt b. Increase its price if it is experiencing an economic loss c. Produce the quantity where its marginal cost equals its marginal revenue d. Produce at the productively eÞcient level of output equals its marginal revenue If the price a Õrm receives for its product is equal to the marginal cost of producing that product, the Õrm is: Select one: a. Always earning an economic proÕt b. Always productively eÞcient c. Always allocatively eÞcient d. Always experiencing an economic loss The correct answer is: Always allocatively eÞcient A perfectly competitive industry has Select one: a. perfectly elastic supply curve b. perfectly elastic demand curve c. negatively sloped demand curve d. positively sloped demand curve Question 13 Correct Mark 1.00 out of 1.00 Question 14 Correct Mark 1.00 out of 1.00 If a perfect competitor is producing at a level where its average cost is $8, and its marginal cost is $9, and it is receiving a price of $10 for its product, the Õrm Select one: a. Is maximizing economic proÕt b. Experiencing economic loss c. Should increase its output d. Is allocatively eÞcient According to the Equimarginal Principle, utility is maximized when marginal utility per dollar spent is __________. Select one: a. More for one good and less for another b. The same for all goods c. The highest for each good d. Calculated from the budget constraint e. Zero https://my.uopeople.edu/mod/quiz/review.php?attempt=1725432&cmid=164485 9/12 Question 15 Correct Mark 1.00 out of 1.00 A perfectly competitive Õrm that is in long-run equilibrium will Select one: a. Earn an economic proÕt, be allocatively eÞcient, and be productively eÞcient. b. Not earn an economic proÕt, but be allocatively eÞcient and productively eÞcient c. Not earn an economic proÕt, not be allocatively eÞcient, but be productively eÞcient. d. Not earn an economic proÕt, not be productively eÞcient, but be allocatively eÞcient eÞcient and productively eÞcient2019/3/31 Graded Quiz Unit 6 https://my.uopeople.edu/mod/quiz/review.php?attempt=1725432&cmid=164485 10/12 Question 16 Correct Mark 1.00 out of 1.00 Based on the table above, P1 and P2 indicate the prices of Good 1 and Good 2, respectively. Total utility is maximized when the following combination of Good 1 and Good 2 are purchased: Good 1 P1=$2 Good 2 P2=$4 Quantity Total Utility Quantity Total Utility 1 20 1 36 2 30 2 52 3 38 3 64 4 44 4 72 5 48 5 76 Select one: a. 5 units of Good 1 and 5 units of Good 2 b. 3 units of Good 1 and 3 units of Good 2 c. 1 unit of Good 1 and 1 unit of Good 2 d. 3 units of Good 1 and 2 units of Good 2 e. Cannot determine unless budget constraint is speciÕed speciÕed2019/3/31 Graded Quiz Unit 6 https://my.uopeople.edu/mod/quiz/review.php?attempt=1725432&cmid=164485 11/12 Question 17 Correct Mark 1.00 out of 1.00 Question 18 Correct Mark 1.00 out of 1.00 In the Indiàerence Curve Analysis, a consumer maximizes utility by choosing that combination of goods _______. Select one: a. At which the budget line is tangent to the highest indiàerence curve b. At which the consumer's marginal rate of substitution is equal to the price ratios of the two goods c. Where the marginal decision rule is satisÕed d. All of the above e. None of the above. If the typical Õrm in a perfectly competitive market is experiencing an economic loss, which of the following will happen? Select one: a. Firms will enter the market and the price will decrease b. Firms will enter the market and the price will increase c. Firms will exit the market and the price will decrease d. Firms will exit the market and the price will increase increase2019/3/31 Graded Quiz Unit 6 https://my.uopeople.edu/mod/quiz/review.php?attempt=1725432&cmid=164485 12/12 Question 19 Correct Mark 1.00 out of 1.00 Question 20 Correct Mark 1.00 out of 1.00 ◄ Self Quiz Unit 6 Jump to... Learning Guide for Unit 7 ► In the long run, a perfectly competitive Õrm will achieve all but which of the following: Select one: a. Economic proÕt b. Allocative EÞciency c. Productive EÞciency d. Normal proÕt If a proÕt maximizing perfectly competitive Õrm is selling 1000 units at a price of $10 and its average total cost is $8 the Õrm is experiencing: Select one: a. A total proÕt of $2 b. A total proÕt of $2000 c. A price greater than its marginal cost d. An economic loss [Show More]

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