# ECO365/ECO365 FINAL EXAMINATION (Solution 100%) - 87860

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## anjis_devis

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1. Because you can only obtain more of one good by giving up some of another good, the shape of a production possibility curve is _______________.

downward-sloping

perfectly vertical

perfectly horizontal

upward-sloping

2. Refer to the table shown. The average product when eight workers are employed is _____6____

Number of workers Total Output

1 4

2 10

3 18

4 28

5 35

6 41

7 45

8 48

9 50

10 49

3. A resource is said to have a comparative advantage if

it is equally suited to the production of all goods.

its suitability to the production of one good changes as it produces more of that good.

its suitability to the production of one good does not change as it produces more of that good.

it is better suited to the production of one good than to the production of an alternative good.

4. Refer to the graph shown. Initially, the market is in equilibrium with price equal to \$3 and quantity equal to 100. Government imposes a tax on suppliers of \$1 per unit. The effect of the tax is to ?

lower the price consumers pay from \$3 to \$2.

lower the price sellers keep after paying the tax.

raise the price consumers pay from \$3 to \$4.

raise the price sellers keep after paying the tax.

5. Refer to the table shown. Diminishing marginal productivity begins when the?

fourth worker is hired.

sixth worker is hired.

third worker is hired.

fifth worker is hired

6. Refer to the graph shown. If this monopolistically competitive firm maximizes profit, it will

charge \$45 per dress.

charge \$85 per dress.

charge \$78 per dress.

shut down because it cannot cover its opportunity costs

7. The price of a ticket to a rock concert is set at \$35. All the tickets for the concert sell out 1 hour after they go on sale and there are still 1,000 fans who want to buy tickets. It follows that

the quantity of tickets demanded is equal to the quantity supplied at the \$35 price.

the equilibrium price of tickets to the concert is less than \$35.

the equilibrium price of tickets to the concert is more than \$35.

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