Question: Suppose that in a perfectly competitive market, firms are making economic profits. In the long run, we can expect to see:

Answer Options: a. economic profits become zero. b. market supply shift to the left. c. economic profits become zero. d. the market price rise. Correct Answer: a. economic profits become zero.

 

Question: A bus is mostly filled with passengers and ready to travel from Los Angeles to San Francisco. At the last minute, a person comes running up to the bus and asks for a ride. The change in the bus company’s total cost as a result of transporting one more passenger on this trip is called:

Answer Options: a. marginal cost. b. fixed cost. c. fixed cost. d. variable cost. Correct Answer: a. marginal cost.

 

Question: To maximize long-run profits, the monopolistically competitive firm shown in Exhibit 9-3 will charge a price per unit of:

Answer Options: a. $10 b. $10 c. $20 d. $30 Correct Answer: b. $10

 

Question: A price-discriminating monopoly charges the lowest price to the group that:

Answer Options: a. has the most elastic demand. b. has the least responsive to price changes. c. purchases the largest quantity. d. engages in the most arbitrage. Correct Answer: a. has the most elastic demand.

 

Question: A monopolist earning economic profit in the short run determines that at its present level of output, marginal revenue is $23 and marginal cost is $30. Which of the following should the firm do to increase profit?

Answer Options: a. Raise price and lower output. b. Lower price and lower output. c. Raise price and raise output. d. Lower price and raise output. Correct Answer: a. Raise price and lower output.

 

Question: Why is it important to use real GDP rather than nominal GDP figures when making comparisons of output across time periods?

Answer Options: a. The real figures will reflect changes in the quantity of output and not changes in the general level of prices. b. The real GDP figures adjust for changes in the level of employment. c. The real GDP figures are a better measure of changes in the general level of prices. d. The real figures will reflect changes in the general level of prices as well as changes in the quantity of output. Correct Answer: a. The real figures will reflect changes in the quantity of output and not changes in the general level of prices.

 

Question: As shown in Exhibit 7-12, if the price is OD, the firm’s total revenue at its most profitable level of output is:

Answer Options: a. OQ1ED. b. OQ1HD. c. OYHB. d. OXLD. Correct Answer: a. OQ1ED.

 

Question: A portrait photographer produces output in packages of 100 photos each. If the output sold increases from 600 to 700 photos, total revenue increases from $2,100 to $4,100. The marginal revenue per photo is:

Answer Options: a. $10. b. $200. c. $20. d. $2. Correct Answer: d. $2.

 

Question: As shown in Exhibit 7-12, the firm will shut down in the short-run at a price below:

Answer Options: a. OA. b. OB. c. OD. d. OQ1. Correct Answer: a. OA.

 

Question: According to your book, the term Tin Pan Alley refers to the thin, tinny tone quality of cheap upright pianos used in music publishers’ offices in New York during the late 19th and early 20th Centuries.

Answer Options: a. True b. False Correct Answer: a. True

 

Question: T. Bone Walker is considered a Doo-wop artist.

Answer Options: a. True b. False Correct Answer: b. False

 

Question: Spirituals are religious folk songs.

Answer Options: a. True b. False Correct Answer: a. True

 

Question: Jerry Lee Lewis, Eddie Cochran, and Elvis Presley were all Blues artists.

Answer Options: a. True b. False Correct Answer: b. False

 

Question: Bo Diddley was the disc jockey who coined the term “Rock and Roll.”

Answer Options: a. True b. False Correct Answer: b. False

 

Question: Elvis was accepted to the Grand Ole Opry.

Answer Options: a. True b. False Correct Answer: b. False

 

Question: The U.S. involvement in WWII did not affect the Blues at all.

Answer Options: a. True b. False Correct Answer: b. False

 

Question: Ragtime’s energy and fun, syncopated rhythms were influential to later Rock and Roll musicians.

Answer Options: a. True b. False Correct Answer: a. True

 

Question: A _______________ is an expressive and elaborate melodic improvisation sung on a single syllable.

Answer Options: a. Scat b. melisma Correct Answer: b. melisma

 

Question: _______________ is the spontaneous performance of music that has not been written or planned out in advance.

Answer Options: a. Improvisation b. Composition Correct Answer: a. Improvisation