Is Anyone Really Good At Economics?

6. The change in output from adding one more worker is the (1 point)
marginal product of labor.
increasing marginal returns.
diminishing marginal returns.
negative marginal returns.
7. Marginal cost is (1 point)
total revenue minus total cost.
total revenue plus total cost.
the cost of producing one more unit of a good.
the difference between fixed and variable costs.
8. A subsidy is
(1 point)
a tax on the production or sale of a good.
a government payment to support a business or market.
a form of government regulation.
illustrated by the market supply curve.
9. A market is in equilibrium when (1 point)
quantity demanded is greater than quantity supplied.
quantity supplied is greater than quantity demanded.
quantity supplied and quantity demanded are equal.
the government takes action to bring it into equilibrium.
10. Disequilibrium occurs when (1 point)
quantity supplied and quantity demanded are not equal.
quantity supplied and quantity demanded are equal.
prices are higher than quantity supplied.
there is neither excess supply nor excess demand.
11. When does a surplus exist? (1 point)
when new products are brought to the market for sale
whenever prices drop
when there are too few items for the people who want to buy them
when there is a greater supply of a good than people want to buy
12. Rationing is a common form of distribution in (1 point)
a centrally planned economy.
a free market economy.
a price-based system.
a market based on competition.
13. A market structure with many sellers and many buyers is (1 point)
an oligopoly.
monopolistic.
perfect competition.
nonprice competition.
14. A market that is a monopoly has (1 point)
many buyers and sellers.
many firms selling slightly different products.
three or four firms dominating the market.
one seller and many buyers.
15. Compared to a market with perfect competition, a monopoly has (1 point)
lower prices and fewer goods.
higher prices and fewer goods.
lower prices and more goods.
higher prices and more goods.
16. One role of the federal government’s Justice Department is to (1 point)
encourage price fixing.
break up monopolies.
provide businesses with loans for start-up costs.
eliminate barriers to entry.
17. What category would include subsidies, excise taxes, and regulation? (1 point)
the effects of rising costs
limits on imports
government influences on supply
benefits of marginal costs
18. What is the most common result of rent control laws? (1 point)
High-income families are denied rental housing.
Few low-income, high-need renters benefit from the program.
Landlords can no longer discriminate against tenants.
The supply of apartments rises.
19. What is an oligopoly? (1 point)
an agreement by an organization of producers to set prices and production
a market structure in which a few large firms dominate the market
a market structure in which five firms have a price war
a market structure in which a single firm dominates the market