Question

8 According to marginal analysis, the optimal or efficient quantity of personal computers is the quantity at which the

marginal benefit of the last computer produced is zero.

marginal benefit of the last computer produced equals the marginal cost of the last computer produced.

marginal cost of the last computer produced is zero.

total benefit of all computers produced equals the total cost of all computers produced.

average benefit of all computers produced equals the average cost of all computers produced.

31 If chicken alfredo is a normal good and consumer income decreases, then ceteris paribus the

quantity demanded for chicken alfredo will increase.

quantity demanded of chicken alfredo will decrease.

demand for chicken alfredo will remain constant.

demand for chicken alfredo will increase.

demand for chicken alfredo will decrease.

32 If wine and cheese are complements in consumption (and independent in production), then a decrease in the price of cheese will, ceteris paribus,

decrease the demand for wine.

increase the quantity demanded of wine.

increase the demand for wine.

decrease the demand for cheese.

increase the quantity supplied of wine.

33 According to the law of supply, a(n) _____ in the price of gas will _____, ceteris paribus.

decrease, increase the supply of gas

decrease, increase the quantity demanded of gas

decrease, decrease the quantity supplied of gas.

increase, decrease the quantity supplied of gas.

increase, increase the supply of gas

34 A (short run) supply curve slopes upward because of the

law of decreasing opportunity cost

law of diminishing marginal returns (marginal utility)

law of increasing opportunity cost

law of demand

income and substitution effects

35 Which of the following would increase the supply of cheese, ceteris paribus?

An increase in the price of cheese.

An increase in the demand for cheese.

A decrease in the number of cheese producers.

An increase in the wages of cheese production workers.

A decrease in the price of ice cream, assuming that ice cream and cheese are substitutes in production.

Answer 1

8) According to marginal analysis, the optimal or efficient quantity of personal computers is the quantity at which the:

Ans) marginal benefit of the last computer produced equals the marginal cost of the last computer produced.

31) If chicken alfredo is a normal good and consumer income decreases, then ceteris paribus the:

Ans) demand for chicken alfredo will decrease.

32) If wine and cheese are complements in consumption (and independent in production), then a decrease in the price of cheese will, ceteris paribus:

Ans) increase the demand for wine

33) According to the law of supply, a(n) _____ in the price of gas will _____, ceteris paribus.

Ans) increase, decrease the quantity supplied of gas.

34)  A (short run) supply curve slopes upward because of the:

Ans) law of increasing opportunity cost

35) Which of the following would increase the supply of cheese, ceteris paribus?

Ans) An increase in the wages of cheese production workers.