Study guide final exam econ 1b spring 2016 Foldvary

1. The demand for a good is

2. The upper portion of a linear demand curve is

3. An opportunity cost is:

4. Why are diamonds so expensive, yet a month's supply of water, which is much more vital to

             life, so inexpensive in California?

5. A tax on a produced good, with an upward sloping (diagonal) supply,

6. The marginal product of labor is:

7. A profit-maximizing employer will always hire one more worker if:

8.         When a price is below the equilibrium price, there is a:

9. As the price of crude oil falls:

10. If government increases the tax on land rent, suppliers will supply the same amount of land

             regardless of the rent they receive, so:

11. The law of diminishing returns to a variable factor, given a fixed factor and holding everything else constant, implies that

12. If the price elasticity of demand for a good is X, then a 10 percent increase in price would result in a

13. A plot of land in San Francisco has a much higher rent than the same sized

             plot in Fresno in the Central Valley in California because

14. Examples of the implicit reality beneath superficial appearances include

15. Taxes on labor:

16. Sales taxes

17. How can the market price of goods change in perfect competition when every firm is a price taker?

18.       If demand is elastic, then

19. The demand curve for labor:

20. Which of the following factors will most likely not shift the supply curve?

21. If a monopolist applies complete price discrimination

22. Where the supply and demand curves intersect,

23. How can firms have a long-run equilibrium economic profit of zero in perfect competition, when there is a long-run producer surplus which is a positive economic profit?

24. Suppose that commodities A and B are complements for one another in consumption and that the price of B rises sharply due to a decrease in supply. Which of the following will occur?

25. A consumer will maximize utility when

26. If red grapes and green grapes are substitutes, then

27. Price elasticity of demand is:

28.       The law of demand

29. Along a demand curve, total revenue is a maximum when elasticity is:

30. The real interest rate tends to be positive because

31. More television sets were sold this year than last year, with the same quality and at higher prices. The most likely explanation:

32.       The maximization of profit where marginal cost equals marginal revenue

33. Which of the following is true regarding supply and demand?

34. In an industry with atomistic or perfect competition and a pure free market, resources:

35. Graphically, an increase in demand is represented by:

36. An example of a positive externality is when:

37. Which of the following taxes have no deadweight loss?

38. A public good is

39. If you and a friend are watching a show on your TV in your house, besides being possibly a natural monopoly as Mankiw says, then watching the TV show in your house:

40. If workers are paid the value of their marginal product, why would workers with a positive marginal product not be able to obtain employment?

41. Can a price-taking firm be in equilibrium if the average products of all factors are rising?

42. On the Lorenz curve, a perfectly equal distribution of income

43. Wages in the economic sense, as a payment for the labor factor,

44. Is rationing by long lines efficient?

45. Economists tend to doubt the effectiveness of the minimum wage as an anti-poverty program primarily because the minimum wage:

46. To deal with automobile emission pollution, an economist would be likely to say that the most efficient, effective policy is:

47. The economic meaning of scarcity is:

48. Optimal consumer choice.

49. Does unskilled labor receive low wages because its average product is below that of skilled labor?

50. If there is no price discrimination, does a profit-maximizing monopolist always set its price where the demand is elastic?