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
elastic

inferior

substitutes

complements

1 points

Question 5

When economists study the national economy or global economy, they are using a ____ approach.
microeconomics

monetary

macroeconomics

fiscal

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.
producer’s

market

command

planned

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