5 Microeconomics Questions (multiple choice)?

[alburt]

1. Which of the following are NOT characteristic of the market system?

a. The prices of goods and services adjust to bring supply and demand into equilibrium
b. Competition forces firms to use the least cost methods of production
c. Suppliers produce products whose production and sales yield sufficient revenue to cover total costs
d. Consumers determine the composition of output based on their expenditures
e. Production goals are determined by top authorities and transmitted to producing units.

2. If hurricanes destroy a large percentage of orange trees in Florida, the equilibrium prices of oranges in California will _____ because Florida and California oranges are _____ and have a ______ cross elasticity of demand

a. rise, substitutes, positive
b. rise, substitutes, negative
c. fall, substitutes, positive

3. If the cost of water used to irrigate orange groves in California increase, the _____ curve of California oranges _______. This leads to _______ in the equilibrium price for California oranges and ______ in the equilibrium quantity sold

a. demand, shifts to the left, an increase, a decrease
b. demand, shifts to the right, an increase, an increase
c. supply, shifts to the left, an increase, a decrease
d. supply, shifts to the right, a decrease, an increase
e. supply, shifts to the left, a decrease, an increase

4. Last month Jones Hat Company sold 100 hats at $10 each. This month it raised the price of hats to $11 and sold 101 hats. This result indicates:

a. the supply curve of hats shifted upward
b. the law of demand is violated
c. the demand curve for hats is upward sloping
d. that another factor, such as income, changed, shifting the demand curve for hats to the right
e. another factor, such as income, changed, shifting the demand curve to the left

5. Firm XYZ measured its MP of labor curve to be the following:
MP = 4,000 - 2L
where L is the number of hours of labor hired per day.
XYZ produces gadgets that are sold for $20 each and is able to hire workers for $10 per hour.
How many hours will XYZ hire each day?

Thank you so much to anyone who can help!

[erwin]

1. Which of the following are NOT characteristic of the market system?

a. The prices of goods and services adjust to bring supply and demand into equilibrium
b. Competition forces firms to use the least cost methods of production
c. Suppliers produce products whose production and sales yield sufficient revenue to cover total costs
d. Consumers determine the composition of output based on their expenditures
e. Production goals are determined by top authorities and transmitted to producing units.

2. If hurricanes destroy a large percentage of orange trees in Florida, the equilibrium prices of oranges in California will _____ because Florida and California oranges are _____ and have a ______ cross elasticity of demand

a. rise, substitutes, positive
b. rise, substitutes, negative
c. fall, substitutes, positive

3. If the cost of water used to irrigate orange groves in California increase, the _____ curve of California oranges _______. This leads to _______ in the equilibrium price for California oranges and ______ in the equilibrium quantity sold

a. demand, shifts to the left, an increase, a decrease
b. demand, shifts to the right, an increase, an increase
c. supply, shifts to the left, an increase, a decrease
d. supply, shifts to the right, a decrease, an increase
e. supply, shifts to the left, a decrease, an increase

4. Last month Jones Hat Company sold 100 hats at $10 each. This month it raised the price of hats to $11 and sold 101 hats. This result indicates:

a. the supply curve of hats shifted upward
b. the law of demand is violated
c. the demand curve for hats is upward sloping
d. that another factor, such as income, changed, shifting the demand curve for hats to the right
e. another factor, such as income, changed, shifting the demand curve to the left

5. Firm XYZ measured its MP of labor curve to be the following:
MP = 4,000 - 2L
where L is the number of hours of labor hired per day.
XYZ produces gadgets that are sold for $20 each and is able to hire workers for $10 per hour.
How many hours will XYZ hire each day?

Thank you so much to anyone who can help!

1:e
2:a
3:c
4:d
5: 6

[sebastiano]

a a I ain't gna answer your homework!!! thats abusive action girl. or at least wrong category.

[achimelech51]

1.)E
2.)A
3.)C
4.)B