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PEBM SESSION 2 Flashcards | StudBud
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PEBM SESSION 2
PEBM SESSION 2
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1
Consumption of electricity shall be reduced by 5%. The PED for electricity is -0.4. What to do?
Lower the price of electricity by 0.4%
Raise the price of electricity by 12.5%
Raise the price of electricity by 0.8%
Raise the price of electricity by 2%
2
Total utility will be a maximum when:
Marginal utility is zero
Marginal utility is positive
Marginal utility equals total utility
Marginal utility is negative
3
Short-run total cost schedule: When output goes up from 4 to 5 shirts the marginal cost is:
£4.00
£4.25
£20.00
£25.00
4
CP - which one will result in the supply curve for petrol shifting downwards and to the right?
Rise in the price of petrol
Rise in the price of crude oil
Innovation reducing the cost of converting oil into petrol
Less oil being produced per day by the OPEC
5
Ceteris paribus - which one will result in a movement along the demand curve for petrol?
A rise in the price of petrol
Change of consumer tastes from private to public transport
A rise in the real income of consumers
A fall in the price of cars
6
Bus ticket:4€(morning)&2€(afternoon). Why? Because demand in the morning is__and__in afternoon.
Perfectly inelastic; Relatively inelastic
Unit elastic; Inelastic
More elastic; Less elastic
Less elastic; More elastic
7
As you move down a straight-line-downward-sloping demand curve, the price elasticity of demand:
Becomes more elastic
Remains constant because the slope is constant
Becomes less elastic
Is unit elastic the whole length of the demand curve
8
A complement in production for eggs are:
Tomatoes
Salt
Chicken
Milk
9
At a price of €11.00, 90 are demanded; at a price of €9.00, 110 are demanded. The (arc) PED is:
0,1
0
1
0,82
10
In a market system, prices are determined by:
Production costs
Supply and demand
Corporate Executives (CEOs)
Total market demand
11
Best for the University (in order to raise tuition fees) is when the demand for education is:
Unit elastic
Elastic
Perfectly elastic
Inelastic
12
When the marginal product of labour is greater than the average product of labour:
The total product curve is negatively sloped
The marginal product of labour is increasing
The firm is experiencing diminishing returns
The average product of labour is increasing
13
If the cross elasticity of demand between two goods is negative, then the two goods are:
Substitutes
Complements
Inferior goods
Unrelated goods
14
Ceteris Paribus - Which one would NOT tend to raise the price of fuel in Lithuania?
A fall in the rate at which the Euro exchanges for the USD
Reduction in oil supply quotas agreed by the OPEC countries
Release of oil from the US oil reserve stocks
Higher than expected rates of economic growth
15
To raise gov. budget by increasing the taxes on a product, it will be the best when PED is:
Relatively elastic
Relatively inelastic
Perfectly elastic
Perfectly inelastic
