check your economics knowledge (ungraded)

3/17/2015 Check Your Economics Knowledge (Ungraded)

https://www.coursera.org/learn/principlesofmicroeconomics/quiz/HFFpi/checkyoureconomicsknowledgeungraded 1/14

Check Your Economics Knowledge (Ungraded)

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1.

Disclaimer: This quiz is ungraded and optional.

The U.S. economy may be characterized as:

Sorry, that's incorrect. We will cover monopolies and competition inModule 7: Monopoly and Monopolistic Competition

Mixed

Perfectly competitive

Primarily monopolies

I haven't learned this yet

2.

When the government raises taxes to redistribute income from the rich to thepoor through mechanisms like food stamps or Medicare:

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https://www.coursera.org/learn/principles-of-microeconomics/lecture/nhlnI/an-introduction-to-microeconomics



Well done! Great job! We will dig even deeper into economic efficiency inModule 12: Public Goods and Externalities

Economic efficiency is reduced

Economic efficiency improves

There is no effect on economic efficiency


3.

Production Theory helps us understand:

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Why the supply curve slopes downward

Why firms price and produce products the way they do.

Both 1 and 2


4.

Which of these is a nonrival good that leads to the public goods problem?

Sorry, that's incorrect. No problem we will dig cover public goods inModule 12: Public Goods and Externalities

Lighthouse

Hamburger

Computer




5.

Why does quantity demanded tend to fall as price rises?

Sorry, that's incorrect. No problem we will cover income andsubstitution effects in Modules 3 "Supply, Demand and Equilibrium" and 4"Demand and Consumer Behavior"

The Substitution Effect

The Income Effect

Both 1 and 2


6.

Suppose the price of chicken rises. Which way do you think the beef demandcurve will shift?

Sorry, that's incorrect. No problem we will cover supply, demand andequilibrium in Module 3: Supply, Demand and Equilibrium

Inward and leftward

Outward and rightward

It won’t shift


7.

To say something is in equilibrium in economics is to say that:

1. The dynamic forces pushing on it cancel each other out.



Sorry, that's incorrect. No problem we will cover equilibrium in Module3: Supply, Demand and Equilibrium

2. The upward pressure on price is exactly offset by the downward pressureon price.

Both 1 and 2


8.

Who said: “The theory of economics must begin with a correct theory ofconsumption.”

Sorry, that's incorrect. No problem we will cover the fundamentals inModule 1: An Introduction to Microeconomics

Jeremy Bentham

Stanley Jevons

Adam Smith


9.

Which measure of utility simply ranks goods relative to one another?

Sorry, that's incorrect. No problem we will cover utility theory in Module4: Demand and Consumer Behavior

Cardinal

Ordinal

Subliminal




10.

According to the equimarginal principle, utility is maximized when the marginalutility of the last dollar spent on each good is:

Sorry, that's incorrect. No problem we will cover the equimarginalprinciple in Module 4: Demand and Consumer Behavior

Exactly the same as the marginal utility of the last dollar spent on any othergood

Greater than the marginal utility of the last dollar spent on any other good

Less than marginal utility of the last dollar spent on any other good


11.

If an increase in price results in a relatively large decrease in the quantitydemanded, the price elasticity of demand is said to be:

Sorry, that's incorrect. No problem we will cover demand priceelasticity in Module 4: Demand and Consumer Behavior

Elastic

Inelastic

Unit elastic


12.

Total revenue equals:

Profits



Well done! Great job! We will dig even deeper into total revenue inModule 4: Demand and Consumer Behavior

Price divided by quantity

Price times quantity


13.

Why don’t most new cars sell at their sticker price and instead require buyersto negotiate?

Sorry, that's incorrect. No problem we will cover industry structure,conduct, and performance in Module 6: Perfect Competition

The industry pricing strategy is to sort out “comparison shoppers” with moreelastic demands from “impulse buyers” who have inelastic demands andcharge impulse buyers more

The industry pricing strategy is to sort out “comparison shoppers” with moreinelastic demands from “impulse buyers” who have more elastic demandsand charge impulse buyers more

Cars are more complicated purchases


14.

In the long run:

All factors in the production function except capital can be adjusted.

All factors in the production function, including capital, can be adjusted.

Technology is constant




Sorry, that's incorrect. No problem we will cover production function inModule 5: Supply and Production Theory

15.

Elements that contribute to economies of scale include:

Sorry, that's incorrect. No problem we will cover economices of scalein Module 5: Supply and Production Theory

1. Labor Specialization

2. Managerial Specialization

Both 1 and 2


16.

Concentration ratios:

Sorry, that's incorrect. No problem we will cover concentration ratios inModule 7: Monopoly and Monopolistic Competition

1. Measure pricing power

2. Serve as an indicator of the degree of strategic interaction

Both 1 and 2


17.

Antitrust laws have:



Sorry, that's incorrect. No problem we will cover collusion in Module 7:Monopoly and Monopolistic Competition

Been completely effective at stopping collusive behavior

Been somewhat effective at stopping collusive behavior

Been completely ineffective at stopping collusive behavior


18.

Which market structure is the most economically efficient?

Well done! Great job! We will dig even deeper into perfect competition inModule 7: Monopoly and Monopolistic Competition

Monopoly

Monopolistic Competition

Oligopoly

Perfect Competition


19.

A key difference between perfect competition and monopolistic competition isthat with monopolistically competitive firms:

1. Products are differentiated

2. Nonprice competition is common

Both 1 and 2




Sorry, that's incorrect. No problem we will cover perfect competitionand monopolistic competition in Module 7: Monopoly and MonopolisticCompetition

20.

Forms of imperfect competition include

Sorry, that's incorrect. No problem we will cover imperfect competitionin Module 7: Monopoly and Monopolistic Competition

Monopolistic competition

Monopoly

Oligopoly

All of the above


21.

Given a market structure of perfect competition, what kind of conduct withrespect to pricing can we expect?

Sorry, that's incorrect. No problem we will cover perfect competition inModule 6: Perfect Competition

1. P = MC

2. MR = MC

Both 1 and 2




22.

A perfectly competitive industry will produce where:

Sorry, that's incorrect. No problem we will cover perfect competition inModule 6: Perfect Competition

1. Price equals average total cost curve at its minimum

2. Earn zero economic profits.

Both 1 and 2


23.

Analyzing economic questions within the context of “what should be” is a formof what kind of analysis?

Sorry, that's incorrect. No problem we will cover analyzing economicquestions in Module 6: Perfect Competition

Normative or prescriptive

Positive or descriptive

Philosophical


24.

Breaking up a natural monopoly into smaller firms is likely to:

Lower unit costs

Raise unit costs

Have no effect on unit costs



Sorry, that's incorrect. No problem we will cover natural monopoly inModule 7: Monopoly and Monopolistic Competition


25.

A cartel:

Well done! Great job! We will dig even deeper into cartels in Module 8:Oligopoly and Strategic Behavior

Is an organization of independent firms

Produces similar products

Works together to raise prices and restrict output.

All of the above


26.

Dynamic efficiency measures:

Sorry, that's incorrect. No problem we will cover dynamic efficiency inModule 7: Monopoly and Monopolistic Competition

1. The rate of profit growth in an industry

2. The rate of technological change and innovation in an industry

Both 1 and 2




27.

What type of inefficiency is illustrated in the accompanying figure that isassociated with price regulator of natural monopolies using costplus pricing?

Sorry, that's incorrect. No problem we will cover inefficiencies inModule 7: Monopoly and Monopolistic Competition

Allocative inefficiency

Distributive inefficiency

Xinefficiency


28.

The goal of production differentiation is to:

Sorry, that's incorrect. No problem we will cover productiondifferentiation in Module 7: Monopoly and Monopolistic Competition

1. Increase demand

2. Decrease price elasticity of demand

Both 1 and 2




29.

Which type of market structure offers a better chance of firms colluding?

Sorry, that's incorrect. No problem we will cover oligopoly in Module 8:Oligopoly and Strategic Behavior

Monopoly

Monopolistic competition

Oligopoly


30.

In the accompany figure, what is the output for the minimum efficient scale?

Sorry, that's incorrect. No problem we will cover the minimum efficientscale in Module 5: Supply and Production Theory

AC

AD

BC




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AB

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check your economics knowledge (ungraded)

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