Question
1.A price-taker faces a demand curve that is:
horizontal at the market price.
vertical at the market
price.
downward sloping.
upward sloping.
2.A situation is efficient if it is:
possible to find a transaction that will make at least one person better off, even if others are made worse off.
not possible to find a transaction that will make at least one person better off without harming others.
possible to find a transaction that will make everyone better off.
possible to find a transaction that will make at least one person better off without harming others.
3.Even when a firm produces the level of output at which price equals marginal cost, it should shut down if its total revenue is less than its:
variable cost.
fixed cost.
total cost.
marginal cost.
4.John is trying to decide how to divide his time between his job as a stocker in the local grocery store, which pays $7 per hour for as many hours as he chooses to work, and cleaning windows for the businesses downtown. He makes $2 for every window he cleans. John is indifferent between the two tasks, and the number of windows he can clean depends on how many hours he spends cleaning in a day, as shown in the accompanying table.
Economics