ECON 202 – For a firm that has passed the point where the law

For a firm that has passed the point where the law of diminishing returns has taken effect, adding another input to production means that
variable costs are decreasing
marginal product is decreasing
market price is decreasing
profit is decreasing
1 points
Question 2
Which of the following economic terms describes the total value of a nation’s goods or services that have been adjusted for inflation?
Altered gross domestic product
Altered gross national product
Real gross domestic product
Gross domestic product
1 points
Question 3
Nancy Murray has $6,000 in demand deposits with the Teachers Credit Union. This means that she has $6,000 in
savings accounts
certificates of deposit
IRA accounts
checking accounts
1 points
Question 4
If the demand for peaches increases when the price of pears increases, holding other factors constant, then these goods must be
1 points
Question 5
When economists study the national economy or global economy, they are using a ____ approach.
1 points
Question 6
If a senior citizen living on a fixed income has to give up buying some food in order to be able to afford to purchase her medication, this is an example of
opportunity cost
diminishing returns
economic profit
comparative advantage
1 points
Question 7
The primary function of the Fed is to
appoint its board members
charter national banks
regulate the supply of money in the United States so as to maintain a healthy economy
regulate the supply of money in the world to support capitalism
1 points
Question 8
An economic system in which individuals and businesses make the decisions about what to produce and what to buy, and the forces of supply and demand determine how much is sold and at what prices, is called a ____ economy.
1 points
Question 9
If all leading corporations in the soft-drink industry merged, this would
create a monopoly
lead to an oligopoly
encourage monopolistic competition
encourage pure competition
1 points
Question 10
In a perfectly competitive market environment, long-run economic profit equals zero because
barriers to entry keep competing firms out of the market
high, long-run fixed costs drive economic profit to zero
a lack of barriers to entry leads to more firms entering the market, driving profit to zero
long-run economic profits greater than zero are illegal
1 points


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