Question: Suppose that you could either prepare your own tax return in 10 hours or hire a tax specialist to prepare it for you in 3 hours. You value your time at $12.50 an hour; the tax specialist will charge you $50 an hour. The opportunity cost of preparing your own tax return is
Answer Options: $125. $50. $150. $275. Correct Answer: $125.
Question: The marginal product of the second worker is
Answer Options: 40 units of output. 35 units of output. 41.7 units of output. 50 units of output. Correct Answer: 40 units of output.
Question: Creamy Crisp’s total economic costs are
Answer Options: $183,000. $189,000. $111,000. $309,000. Correct Answer: $309,000.
Question: Refer to the demand and cost data for a pure monopolist given in the table. If the monopolist perfectly price-discriminated and sold each unit of the product at the maximum price the buyer of that unit would be willing to pay, and if the monopolist sold 4 units, then total revenue would be
Answer Options: $1,040. $770. $1,270. $1,450. Correct Answer: $1,270.
Question: Suppose that the corn market is purely competitive. If the corn farmers are currently earning positive economic profits, then we would expect that in the long run the market
Answer Options: demand will increase. demand will decrease. supply will increase. supply will decrease. Correct Answer: supply will increase.
Question: The average product (AP) when four units of labor are hired is
Correct Answer: 12.
Question: Suppose that Joe sells pork in a purely competitive market. The market price of pork is $3 per pound. Joe’s marginal revenue from selling the 12th pound of pork would be
Answer Options: $3. $12. $36. 12 lbs. Correct Answer: $3.
Question: Assume that in the short run a firm is producing 100 units of output, has average total costs of $200, and has average variable costs of $150. The firm’s total fixed costs are
Answer Options: $50. $0.5. $500. $5,000. Correct Answer: $5,000.
Question: A monopolistically competitive firm is producing at an output level in the short run where average total cost is $5.20, price is $5.00, marginal revenue is $3.30, and marginal cost is $3.30. This firm is operating
Answer Options: with positive profits. at the break-even point. with a loss. at a nonoptimal level of output. Correct Answer: with a loss.
Question: Augi’s Art Shack sells art supplies in a perfectly competitive market. The firm is currently realizing economic profits of $150,000 in the short run. In the long run we would expect Augi’s to
Answer Options: realize economic profits of $0. realize economic profits greater than $0 but less than $150,000. shut down. realize economic losses greater than $0 but smaller than $150,000. Correct Answer: realize economic profits of $0.
Question: Adding more premises to a valid deductive argument _________.
Answer Options: A. can make it go from valid to invalid B. can make it inductively stronger C. can make the other premises true D. cannot make it invalid Correct Answer: D. cannot make it invalid
Question: Inductive arguments are preferable in some instances because they _________.
Answer Options: A. are not as provable B. are more limited than deductive arguments C. can be more persuasive D. have more truth Correct Answer: C. can be more persuasive
Question: When conducting a survey, it is important to choose a sample that _________.
Answer Options: A. is valid B. has members with the same views C. is intelligent D. is random Correct Answer: D. is random
Question: Consider the following argument. It rained today. It is going to rain tomorrow. Which of the following would make this argument stronger?
Answer Options: A. Evidence that the atmospheric conditions tomorrow will be the same B. Asking one’s friend if they think it is going to rain C. Turning the argument into a deductive argument about the weather D. Consulting someone who reads tea leaves and asking what he or she believes Correct Answer: A. Evidence that the atmospheric conditions tomorrow will be the same
Question: In this form of an argument, one draws a conclusion based on a similarity of the present case to other cases that have something in common with it.
Answer Options: A. a prediction B. a generalization C. an argument from analogy D. a crucial argument Correct Answer: C. an argument from analogy
Question: Inductive arguments _________.
Answer Options: A. are arguments in which the premises prove the conclusion B. have premises that increase the likelihood that the conclusion is true C. can be valid or invalid D. represent a smaller number of arguments than deductive arguments Correct Answer: B. have premises that increase the likelihood that the conclusion is true
Question: Which of the following conclusions is likely to have the strongest inductive evidence?
Answer Options: A. Your teacher will eat an egg for breakfast tomorrow. B. The Colts will win the Super Bowl next year. C. There will be rainwater next month. D. The earth will continue to orbit the sun over the next few days. Correct Answer: D. The earth will continue to orbit the sun over the next few days.
Question: Deductive arguments have this weakness when compared to inductive arguments.
Answer Options: A. They are not valid. B. They involve reasoning from the general to the particular. C. They can be persuasive even when they are unsound. D. They lose their value when they are shown to be unsound. Correct Answer: D. They lose their value when they are shown to be unsound.
Question: This form of inductive argument moves from the specific to the general _________.
Answer Options: A. inductive generalization B. statistical syllogism C. argument from analogy D. deductive argument Correct Answer: A. inductive generalization