Microeconomics Full-Length Practice Test 2Microeconomics Full-Length
Practice Test 2
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- Question 42 refers to the following graph.
Which of the following is nottrue for a perfectly competitive firm?
A. The marginal cost curve intersects the average total cost curve where the average total cost is at a minimum.
B. The marginal cost curve intersects the average total cost curve where the average variable cost is at a
minimum.
C. Price is equal to marginal revenue.
D. P^2 is the profit maximizing price.
E. Q^1 is the profit maximizing output.Q^1 Q^2 Q^3 QuantityP^3P^2
P^1Price- If the labor market for hotel workers is perfectly
competitive, which of the following statements is
true?
A. An increase in the number of hotels will
cause a decrease in the demand for hotel
workers and a new higher wage.
B. The imposition of a minimum wage will
cause an increase in employment.
C. If the demand for hotel workers falls, the
wages paid to hotel workers will increase.
D. A decrease in the supply of labor will cause
the quantity of labor demanded to fall and
the price of labor to increase.
E. If the demand for hotel workers falls, there
will be no change in the price of labor, only a
change in the quantity demanded. - The reallocation of wealth in the United States is
done through:
A. Subsidizing the poor
B. Subsidizing the rich firms
C. Taxing income progressively
D. Retraining unskilled workers
E. Setting a minimum wage rate