ICA

1
ICA 10

• Question One
• Which of the following is the definition, given
  in lecture, for absolute poverty?
• a. What your income is versus others around
  you.
• b. What is your share of national income.
• c. What your income is versus the government
  poverty line.

2
ICA 10

• Question Two
• The poverty threshold is found via a two step
  process. Step one is to determine the dollar
  value of nutritionally sound diet. Step two is
  to multiply the value from step one by
• a. 1.5 b. 2 c. 3 d. 4

3
ICA 10

• Question Three
• Which of the following are problems, identified
  in lecture, with the calculation of the poverty
  threshold?
• a. Diet in calculation has not changed since
• 1959.
• b. The calculation is only adjusted for rates
• of inflation, not cost of living differences.
• c. The threshold ignores in-kind benefits such
• as food stamps.
• d. All of the above are problems identified in
• lecture.

4
ICA 10

• Question Four
• What is the Lorenz Curve designed to measure?
• a. The demand for a good or service.
• b. The production possibilities of society.
• c. The distribution of income in society.
• d. The level of social welfare dispensed by both
  the
• federal and state governments.

5
ICA 10

• Question Five
• According to lecture, research has indicated
  that if we remove all discrimination the women
  would earn _____ of what men earn.
• a. 70 b. 80 c. 90
• d. Women would earn the same amount.

6
ICA 11

• Question One
• Market power is defined as the ability
• a. to restrict entry into a market by potential
  rival firms.
• b. to maintain market share.
• c. to influence the market price of a good or
  service.
• d. All of the above.

7
ICA 11

• Question Two
• Which of the following, according to lecture, is
  a limitation in calculating a four-firm
  concentration ratios?
• a. Information on sales in most industries is
  difficult to find, hence making the calculation
  of concentration ratios difficult.
• b. Often it is difficult to identify the four
  leading firms in an industry.
• c. One must be sure to take into account
  geographic restrictions.
• d. All of the above are limitations identified
  in lecture.

8
ICA 11

• Question Three
• Which of the following is a basic element in the
  theory of the firm?
• a. The Law of Demand
• b. The Law of Diminishing Returns
• c. The Assumption of Profit Maximization
• d. All of the above.

9
ICA 11

• Question Four
• The amount of revenue earned from the last unit
  sold was 10. The cost to produce this unit was
  8. If the firm seeks to maximize profit it
  should
• a. increase output.
• b. decrease output.
• c. maintain its current level of output.

10
ICA 11

• Question Five
• If diminishing returns have set in for a firm,
  expansions in output will cause marginal cost to
• a. rise.
• b. fall.
• c. be unchanged.

11
ICA 12

• Question One
• Which of the following is not a characteristic
  of a competitive market, as identified in
  lecture?
• a. Large number of sellers
• b. Identical good
• c. Entry and exit into industry is costly.
• d. All of the above are characteristics of a
• competitive market.

12
ICA 12

• Question Two
• As a result of the Law of Diminishing Returns,
• a. marginal cost increases as output is
  increased.
• b. marginal cost decreases as output is
  increased.
• c. marginal revenue decreases as output is
  increased.
• d. Two of the above answers are correct.

13
ICA 12

• Question Three
• A firm notes the following data Total Revenue
  is 250. Total Cost is 100. Profit
• for the firm is therefore
• a. 100 b. 150
• c. 250 d. 350

14
ICA 12

• Question Four
• For a competitive firm
• a. P MR
• b. P MC
• c. P gt MC
• d. Two of the above answers are correct.

15
ICA 12

• Question Five
• A firm notes that the cost of producing each
  additional unit exceeds the revenue the sale of
  each unit produces. Given this information the
  profit maximizing firm will
• a. increase output. b. decrease output.
• c. maintain its current level of output.

16
(No Transcript)
17
(No Transcript)
18
(No Transcript)
19
(No Transcript)
20
(No Transcript)