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AP Micro Unit 3 Review Flashcards | StudBud
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AP Micro Unit 3 Review
AP Micro Unit 3 Review
27 terms
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StudBud Administration
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Reviews costs, revenues, perfect competition + random trivia.
Flashcards
27 cards
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Practice quiz
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Questions
27
Answers
1
Which one of the following statements about price in a perfectly competitive market is
FALSE
?
It is set by the market
It is equal to average revenue
It is influenced by individual firms in the market
It is equal to marginal revenue
2
RANDOM! What was the first name of Forrest Gump's girlfriend?
Julie
Jenny
Sally
Samantha
3
The total product curve begins to increase at a decreasing rate after hiring 5 workers in the short run because...
of economies of scale.
diminishing returns is experienced.
diseconomies of scale.
labor productivity is increasing.
4
RANDOM! In what country can you find the world's tallest building?
United Arab Emirates
South Korea
China
United States
5
RANDOM! Oh snap! I just injured my anterior cruciate ligament! What part of my body is injured?
Neck
Knee
Ankle
Elbow
6
RANDOM! What is the sum of the three interior angles in any triangle?
360
90
180
270
7
If the current price is P2, then:
The firm would earn a profit
The firm would break even
The firm would incur a loss and shut down
The firm would incur a loss and stay open in the short run
8
Based on the graph shown, what price indicates the shutdown point?
P2
P4
P1
P3
9
RANDOM! What state's nickname is "The North Star State?"
Alaska
Minnesota
Maine
North Dakota
10
Which statement about a perfectly competitive market in the
SHORT
run is
true
?
Firms should shut down when price falls below minimum ATC
Firms can earn positive economic profits
Firms will always break even
The firm should produce where MR = minimum ATC
11
RANDOM! What is on the back of a $20 bill?
Monticello
US Capitol
The White House
US Treasury Building
12
Which of the following statements about economies of scale is
true
?
It occurs due to diminishing returns
It occurs in the short run only
It is associated with decreases in output
It occurs when long run ATC decreases as output increases
13
MC is equal to AVC and ATC at:
minimum MC
minimum ATC and AVC
a quantity of 1
at minimum AFC
14
If a perfectly competitive firm is operating where its MR < MC, it should...
Produce the same quantity
Increase production
Decrease production
Shut down
15
Which one of the following statements about the perfect competition graph shown is
true
?
It shows a firm incurring an economic loss
It shows a firm earning positive economic profits
It shows long run equilibrium
It shows a firm not producing the profit maximizing quantity
16
Which of the following is
NOT
a characteristic of a perfectly competitive market?
No non-price competition exists
Many firms in the market
Easy entry into the market
Differentiated products
17
RANDOM! Who holds the single-season home run record in major league baseball with 73*?
Barry Bonds
Babe Ruth
Sammy Sosa
Mark McGwire
18
Which one of the following statements about costs is true?
At least one input cost is fixed in the short run
All input costs are fixed in the long run
All inputs costs are variable in the short run
All input costs are fixed in the short run
19
The portion of the marginal cost curve that lies above minimum AVC...
Is the supply curve for the perfectly competitive firm
Represents the shutdown point
Never crosses the marginal revenue curve
Is the demand curve for the competitive firm
20
RANDOM! Who was the youngest U.S. President
elected
into office?
Barack Obama
John F Kennedy
Teddy Roosevelt
Thomas Jefferson
21
If the current price is P4, then:
More firms would enter the market & drive price down in the long run
Firms would exit the market
The firm would break even
The market is in long run equilibrium
22
Marginal Cost equals...
Change in total cost / change in quantity of output
AVC + AFC
ATC - AVC
The change in total cost / change in fixed cost
23
Revenue = $100,000, Depreciation = $5,000, Payroll = $50,000, Implicit Costs = $30,000. So...
Accounting profit = $45,000
Economic profit = $20,000
Accounting profit = $80,000
Economic profit = $70,000
24
The following graph best represents the:
Marginal cost curve
Marginal product curve
Total product curve
Average total cost curve
25
Implicit costs are...
Factored into accounting profit
Ignored when calculating economic profit
Opportunity costs used to determine economic profit
Also known as depreciation
26
RANDOM! What is the state animal of Pennsylvania?
Eastern Gray Squirrel
White Tailed Deer
American Black Bear
Red Fox
27
With the addition of which worker does diminishing returns begin for the company depicted in the chart?
3rd worker
2nd worker
4th worker
5th worker
