Student name:__________

1) Economic theory assumes that a firm’s goal is to

D) maximize its
A) earn an accounting profit. economic profit.
B) earn an economic profit.
C) maximize its accounting profit.

2) Explicit costs

production.
A) measure the opportunity costs of the resources D) are variable in
supplied by the firm's owners. the short run.
B) are fixed in the short run.
C) measure the payments made to the firm's factors of

3) Which of the following is NOT an example of an

explicit cost?

business.
A) The overtime wages paid to workers. D) The rent the
B) The income the owner could have earned in his or owner pays each month to
her next best employment opportunity. lease office space.
C) The salaries paid to the managers who help run the

4) Which of the following statements about explicit costs

is true?

C) They are
A) They are the only costs that matter to business
owners.
B) They usually exceed implicit costs.

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difficult to measure.
D) They appear on the firm's balance sheet.

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5) Which of the following statements about implicit costs
is true?

D) They do not
A) They are always fixed. enter into the calculation of
B) They measure the forgone opportunities of the economic profit.
firm's owners.
C) They exceed explicit costs.

6) Accounting profit is equal to

D) economic profit
A) total revenue minus implicit costs. minus implicit costs.
B) total revenue minus explicit costs.
C) total revenue minus explicit and implicit costs.

7) An example of an implicit cost is

office.
A) interest paid on a bank loan used to purchase D) operating costs
equipment. of a company-owned car.
B) wages paid to a family member who works at the
firm.
C) the value of a spare bedroom turned into a home

8) If you were to start your own business, your implicit

costs would include the

A) rent that you

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have paid in advance for the use of a building. D) interest that you
B) opportunity cost of the time you spend working at pay on your business
the business. loans.
C) profit you earn over and above your normal profit.

9) Suppose you own a small business. Last month, your

total revenue was $6,000. In addition, you paid

$1,000 in monthly rent for office space,

$200 in monthly rent for equipment,

$3,000 to your workers in wages for the month, and

$1,000 for the supplies you used that month.

If you correctly determine that your economic profit last

month was −$200, then it must be true that

D) your implicit
A) your implicit costs are $0 per month. costs are $1,400 per
B) your implicit costs are $800 per month. month.
C) your implicit costs are $1,000 per month.

10) Suppose you own a small business. Last month, your

total revenue was $9,000. In addition, you paid $1,600 for the supplies
you used that month.
$2,500 in monthly rent for office space,
If you correctly determine
$275 in monthly rent for equipment, that your economic profit
last month was −$200,
$3,000 to your workers in wages for the month, and then it must be true that

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 D) your implicit
A) your implicit costs are $1,625 per month. costs are $1,825 per
B) your implicit costs are $200 per month. month.
C) your implicit costs are $2,975 per month.

11) Curly told Larry about his new business venture:

Curly pays Acme International $1,000 per month for supplies,
works out of his apartment on his own computer, and earns a
monthly revenue of $1,500. Should Larry quit his job and do
what Curly is doing?

payment at no interest.
A) Yes, as long as Larry has at least $1,000 in savings D) Yes, as long as
to get started. Larry can work out if his
B) Not if Larry is earning more than $500 per month apartment and owns a
at his current job. computer.
C) Not unless Larry can borrow the $1,000 monthly

12) If a firm is earning zero economic profit, then

continue to operate in the

A) the firm's revenues are sufficient to pay its explicit short run.
costs, but not its implicit costs. D) the firm's
B) the owner will not be able to pay himself or herself accounting profit is equal
a salary. to the firm’s implicit costs.
C) the firm will shut down in the long run, but will

13) Which of the following would not be included in the

calculation of accounting profit?

A) The wages paid

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to the company's workers. D) The medical
B) The salary the owner could have earned working insurance coverage for the
elsewhere. company's workers.
C) The rent paid by the owner for the use of a
building.

14) Economic profit is equal to

costs.
A) accounting profit plus implicit costs. D) accounting
B) total revenue minus accounting profit. profit minus explicit costs.
C) total revenue minus the sum of explicit and implicit

15) Accounting profit minus implicit costs equals

C) explicit costs.
A) total revenues. D) fixed costs.
B) economic profit.

16) Which of the following statements is true?

D) Accounting
A) Accounting profit is always positive. profit is greater than or
B) Economic profit is always positive. equal to economic profit.
C) Economic profit is greater than or equal to
accounting profit.

17) A firm earns a normal profit when its

A) accounting

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profit is positive. D) accounting
B) economic profit is positive. profit is zero.
C) economic profit is zero.

18) Last year Christine worked as a consultant. She hired

an administrative assistant for $15,000 per year and rented
office space (utilities included) for $3,000 per month. Her
total revenue for the year was $100,000. If Christine hadn’t
worked as a consultant, she would have worked at a real
estate firm earning $40,000 a year.
Last year, Christine's explicit costs were ______, and her
implicit costs were ______.

D) $51,000;
A) $15,000; $43,000 $40,000
B) $18,000; $40,000
C) $36,000; $140,000

19) Last year Christine worked as a consultant. She hired

an administrative assistant for $13,500 per year and rented
office space (utilities included) for $3,200 per month. Her
total revenue for the year was $135,000. If Christine hadn’t
worked as a consultant, she would have worked at a real
estate firm earning $55,000 a year.

Last year, Christine's explicit costs were ______, and her

implicit costs were ______.

D) $16,700;
A) $13,500; $55,000 $58,200
B) $51,900; $55,000
C) $38,400; $190,000

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20) Last year Christine worked as a consultant. She hired
an administrative assistant for $15,000 per year and rented Christine's opportunity
office space (utilities included) for $3,000 per month. Her cost of working as a
total revenue for the year was $100,000. If Christine hadn’t consultant last year was
worked as a consultant, she would have worked at a real ______.
estate firm earning $40,000 a year.

C) $40,000
A) $15,000 D) $36,000
B) $51,000

21) Last year Christine worked as a consultant. She hired

an administrative assistant for $15,000 per year and rented Last year, Christine's
office space (utilities included) for $3,000 per month. Her accounting profit was
total revenue for the year was $100,000. If Christine hadn’t ______ and her economic
worked as a consultant, she would have worked at a real profit was ______.
estate firm earning $40,000 a year.

C) $49,000; $9,000
A) $100,000; $64,000 D) $9,000; 0
B) $64,000; $49,000

22) Last year Christine worked as a consultant. She hired

an administrative assistant for $12,500 per year and rented Last year, Christine's
office space (utilities included) for $3,300 per month. Her accounting profit was
total revenue for the year was $120,000. If Christine hadn’t ______ and her economic
worked as a consultant, she would have worked at a real profit was ______.
estate firm earning $40,000 a year.

D) $104,200;
A) $80,400; −$40,000 $76,700
B) $107,500; $80,000
C) $67,900; $27,900

23) Last year Christine worked as a consultant. She hired an administrative assistant

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for $15,000 per year and rented office space (utilities For Christine to earn a
included) for $3,000 per month. Her total revenue for the year normal profit as a
was $100,000. If Christine hadn’t worked as a consultant, she consultant, her accounting
would have worked at a real estate firm earning $40,000 a profit would have to be
year. ______.

C) $9,000
A) $51,000 D) $0
B) $40,000

24) Taylor used to work as a yoga instructor at the local

gym earning $35,000 a year. Taylor quit that job and started Taylor's explicit costs are
working as a personal trainer. Taylor makes $50,000 in total ______, and Taylor's
annual revenue. Taylor's only out-of-pocket costs are $12,000 implicit costs are ______.
per year for rent and utilities, $1,000 per year for advertising
and $3,000 per year for equipment.

D) $35,000;
A) $36,000; $15,000 $16,000
B) $15,000; $36,000
C) $16,000; $35,000

25) Taylor used to work as a yoga instructor at the local

gym earning $41000 a year. Taylor quit that job and started Taylor's explicit costs are
working as a personal trainer. Taylor makes $55,000 in total ______, and Taylor's
annual revenue. Taylor's only out-of-pocket costs are $12,000 implicit costs are ______.
per year for rent and utilities, $1,000 per year for advertising
and $2,500 per year for equipment.

D) $20,500;
A) $15,500; $41,000 $25,500
B) $25,500; $20,500
C) $41,000; $15,500

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26) Taylor used to work as a yoga instructor at the local
gym earning $35,000 a year. Taylor quit that job and started Taylor's accounting profit
working as a personal trainer. Taylor makes $50,000 in total is _______, and Taylor's
annual revenue. Taylor's only out-of-pocket costs are $12,000 economic profit is
per year for rent and utilities, $1,000 per year for advertising _______.
and $3,000 per year for equipment.

D) $15,000; −
A) $50,000; $15,000 $1,000
B) $34,000; −$1,000
C) $34,000; $15,000

27) Taylor used to work as a yoga instructor at the local

gym earning $37,500 a year. Taylor quit that job and started
working as a personal trainer. Taylor makes $50,000 in total
annual revenue. Taylor's only out-of-pocket costs are $10,000
per year for rent and utilities, $1,000 per year for advertising
and $1,500 per year for equipment.

Taylor's accounting profit is _______, and Taylor's economic

profit is _______.

D) $17,500;
A) $37,500; $0 $32,500
B) $0; $37,500
C) $32,500; $17,500

28) Taylor used to

work as a yoga instructor
at the local gym earning
$35,000 a year. Taylor quit
that job and started
working as a personal
trainer. Taylor makes
$50,000 in total annual
revenue. Taylor's only out-

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of-pocket costs are $12,000 per year for rent and utilities, For Taylor to earn normal
$1,000 per year for advertising and $3,000 per year for profit, Taylor's accounting
equipment. profit would have to be
______.

C) $15,000
A) $50,000 D) $0
B) $35,000

29) If a firm is earning zero economic profit, then its

accounting profit will

D) be positive.
A) be negative.
B) decrease in the long run.
C) increase in the long run.

30) If the owners of a business are receiving total revenues

just sufficient to cover all of their explicit and implicit costs,
then they are

D) doing worse
A) doing better than their next best alternative. than their next best
B) earning a normal profit. alternative.
C) earning an economic loss.

31) Suppose Juliana owns a small business making month. If Juliana weren't
handbags. Each month she makes 18 handbags, which she
sells for $100 each. The materials used to make each handbag
cost $50. In addition, Juliana uses a spare room in her house
to make the handbags and store her supplies. If she were not
using the spare room for her business, she would use it as a
guest room, an option that Juliana would value at $250 per

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making handbags, she would work at Trader Joe's earning
$800 per month. What is Juliana's accounting profit each
month?

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 C) $650
A) $150 D) $750
B) $900

32) Suppose Juliana owns a small business making

handbags. Each month she makes 18 handbags, which she
sells for $100 each. The materials used to make each handbag
cost $50. In addition, Juliana uses a spare room in her house
to make the handbags and store her supplies. If she were not
using the spare room for her business, she would use it as a
guest room, an option that Juliana would value at $250 per
month. If Juliana weren’t making handbags, she would work
at Trader Joe’s earning $800 per month. What is Juliana’s
economic profit each month?

C) $650
A) −$150 D) $750
B) $900

33) Refer to the accompanying table. An output level of

25 units, this firm’s accounting profit is ______, and its
economic profit is ______.

Quantity Total Explicit Implicit 20 1 9 7

Revenue Costs Costs 25 1 1 8
10 50 36 5 30 1 1 9
15 75 63 6

C) $125; zero
A) zero; $8 D) zero; −$8
B) $125; $113

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34) Refer to the accompanying table. An output level of
15 units, this firm’s accounting profit is ______, and its
economic profit is ______.

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Quantity Total Explicit Implicit 30 1 1 9
Revenue Costs Costs
10 50 36 5 A) $6; $63
15 75 63 6 B) $12; $6
20 100 93 7 C) $6; $12
25 125 125 8 D) $63; $6

35) Suppose Lando Calrissian owns a smuggling business

whose total revenue is $30,000 per month. The accompanying
table shows Lando’s monthly expenses. If Lando weren't a
smuggler, he would earn $6,000 per month working for the
Rebel Alliance. Apart from pay, Lando is indifferent between
working as a smuggler and working for the Rebel Alliance.

Fuel $ 4,000
Maintenance 12,000
Weapons 6,000 What is Lando’s
accounting profit each
Bribes 3,000
month?

C) −$1,000
A) $1,000 D) −$5,000
B) $5,000

36) Suppose Lando Calrissian owns a smuggling business whose total revenue is

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$30,000 per month. The accompanying table shows Lando’s and working for the Rebel
monthly expenses. If Lando weren't a smuggler, he would Alliance.
earn $6,000 per month working for the Rebel Alliance. Apart
from pay, Lando is indifferent between working as a smuggler

Fuel $ 4,000
Maintenance 12,000 In the long run, we would
Weapons 6,000 expect Lando to
Bribes 3,000

smuggling is positive.
A) join the Rebel Alliance since his accounting profit D) join the Rebel
from smuggling is negative. Alliance since his
B) continue smuggling since his accounting profit economic profit from
from smuggling is positive. smuggling is negative.
C) continue smuggling since his economic profit from

37) Refer to the accompanying table. At what output level

or levels are this firm’s owners doing as well as or better than
they could do with the next best use of their resources?

Quantity Total Explicit Implicit

Revenue Costs Costs A) 10 units
10 $ 50 $ 36 $ 5 B) 10 and 15 units
15 75 63 6 C) 10, 15, and 20
20 100 93 7 units
D) 10, 15, 20, and
25 125 125 8
25 units
30 150 161 9

38) Adam Smith coined the term "invisible hand" to

describe the process by which the actions of independent,
self-interested buyers and sellers will

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 resources.
A) always lead an economy to ruin. D) often lead to
B) often lead to the most efficient allocation of increasing inequality.
resources.
C) always lead to the most efficient allocation of

39) Adam Smith's theory of the invisible hand posits the

actions of independent, self-interested buyers and sellers will
______ lead to the most efficient allocation of resources.

C) rarely
A) always D) never
B) often

40) Adam Smith's theory of the invisible hand posits that

the most efficient allocation of resources is often achieved by

and sellers.
A) reducing economic inequality.
B) government intervention in the market.
C) collective action.
D) the actions of independent, self-interested buyers

41) Refer to the accompanying table. Suppose all firms in

this industry have identical costs to this firm and are
producing 15 units of output. One can predict that

Quantity Total Explicit Implicit 20 1 9 7

Revenue Costs Costs 25 1 1 8
10 $ 50 $ 36 $ 5 30 1 1 9
15 75 63 6

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 D) price must rise.
A) new firms will enter the industry.
B) old firms will exit the industry.
C) firms will attempt to lower their implicit costs.

42) The role that prices play in distributing scarce goods

and services to those consumers who value them the most
highly is known as the ______ function of price.

C) equilibrium
A) allocative D) rationing
B) multiplicative

43) The role that prices play in directing resources away

from overcrowded markets and towards markets that are
underserved is known as the ______ function of price.

C) rationing
A) allocative D) transitive
B) market

44) Which of the following is an example of the rationing

function of price?

D) Government
A) Switching from a Ph.D. in economics to one in price controls
finance because finance salaries are higher
B) Bill Gates purchasing the Mona Lisa for $5 billion
C) A firm attempting to lower its explicit costs

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45) The allocative function of price is to

D) provide
A) distribute scarce goods and services to those subsidies to low-income
consumers who value them the most highly. families so they can
B) ensure that firms in perfectly competitive markets purchase essential goods
earn an economic profit. and services.
C) direct resources away from markets that are
overcrowded and toward markets that are underserved.

46) Generally, ______ motivates firms to enter an

industry, while ______ motivates firms to exit an industry.

D) economic profit;
A) economic profit; economic loss accounting loss
B) accounting profit; accounting loss
C) accounting profit; economic loss

47) Suppose farmers in a given market can either grow

soybeans or corn on their land. In addition, suppose an
increase in the demand for corn causes the price of corn to
increase. All else equal, an increase in the price of corn
creates an incentive for farmers to

soybeans.
A) switch away from growing corn and into growing D) grow more corn,
soybeans. but not change their
B) switch away from growing soybeans and into production of soybeans.
growing corn.
C) grow less corn, but not change their production of

48) Suppose farmers in a given market can either grow increase in the demand for
soybeans or corn on their land. In addition, suppose an corn causes the price of

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corn to increase. In the long run, this increase in the demand for corn is likely to ______
the price of soybeans.

D) have an
A) lead to an increase in ambiguous effect on
B) lead to a decrease in
C) have no effect on

49) Suppose farmers in a given market can either grow

soybeans or corn on their land. In addition, suppose an
increase in the demand for corn causes the price of corn to
increase. As a result of the increase in the price of corn,
farmers who were already growing corn will earn an

D) economic loss
A) economic loss in the short run. in the long run.
B) economic profit in the long run.
C) economic profit in the short run.

50) If the firms in a market are earning an economic

profit, then, in the long run, the market ______ curve will
shift to the ______.

C) supply; left
A) demand; right D) demand; left
B) supply; right

51) If the firms in a market have implicit costs that exceed

their accounting profits, then, in the long run, the market
______ curve will shift to the ______.

B) supply; left
A) supply; right

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 C) demand; left
D) demand; right

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52) Suppose all firms in a perfectly competitive industry
are earning an economic profit. One would expect that, over
time, the number of firms in the industry will ______ and the
market price will ______.

D) rise; stay the

A) rise; fall same
B) fall; rise
C) rise; rise

53) If all firms in a perfectly competitive industry are

earning a normal profit, then

D) the market
A) new firms will enter the industry. supply curve will shift to
B) existing firms will exit the industry. the left.
C) there is no incentive for firms to enter or exit the
industry.

54) If all firms in a perfectly competitive industry are

experiencing economic losses, then

for better times.

A) some firms will exit the industry, until economic D) some firms will
profit is positive. exit the industry, until
B) some firms will exit the industry, until accounting economic profit equals
profit equals zero. zero.
C) all existing firms will stay in the industry, hoping

55) Entry into a perfectly competitive industry occurs whenever

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 D) economic profit
A) accounting profit is equal to zero. is equal to zero.
B) accounting profit is greater than zero.
C) economic profit is greater than zero.

56) In an industry with free entry and exit, positive

economic profit

D) can be sustained
A) indicates a market failure. indefinitely.
B) can never occur.
C) cannot be sustained indefinitely.

57) In the long run, in a perfectly competitive industry

D) economic profit
A) economic profit tends to persist. and loss are driven to zero
B) the number of firms in the industry will increase. by entry and exit.
C) economic loss tends to persist.

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58) Assume that all firms in this industry have identical
cost curves, and that the market is perfectly competitive.

The long-run equilibrium

C) $5.
A) $15. D) $0.
B) $10.

59) Assume that all firms in this industry have identical

cost curves, and that the market is perfectly competitive.

If the market supply curve is given by S3, then in the long

run firms will

C) enter the market,

A) exit the market, leading the market supply curve to leading the market supply
shift back to S2. curve to shift back to S2.
B) exit the market, leading the market supply curve to D) neither enter nor
shift back to S1. exit the market, so the

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market supply curve will remain at S3.

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60) Assume that all firms in this industry have identical
cost curves and that the market is perfectly competitive.

If the market supply curve is given by S1, then in the long

run firms will

shift out to S2.

A) enter the market, leading the market supply curve D) neither enter nor
to shift out to S3. exit the market, so the
B) enter the market, leading the market supply curve market supply curve will
to shift out to S2. remain at S1.
C) exit the market, leading the market supply curve to

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61) Assume that all firms in this industry have identical
cost curves, and that the market is perfectly competitive.

In the short run, firms in

C) less than $10.
A) greater than $10. D) less than $5.
B) less than $15.

62) Assume that all firms in this industry have identical

cost curves, and that the market is perfectly competitive.

The firm depicted in the graph on the right faces a demand

curve that is

D) the same as the

A) horizontal at the market price. market demand curve.
B) less than the market demand curve.
C) the same as the marginal cost curve.

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63) Assume that all firms in this industry have identical
cost curves and that the market is perfectly competitive.

In the long run, there will be ______ firms in this market.

C) 25
A) 10 D) 50
B) 15

64) In perfectly competitive markets, an implication of

entry and exit in response to economic profit and loss is that

average total costs in the

A) firms must earn positive economic profit in the long run.
long run. D) market demand
B) firms will produce the quantity that minimizes is completely elastic.
average variable costs in the short run.
C) firms will produce the quantity that minimizes

65) One difference between the long run and the short run
in a perfectly competitive industry is that

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 D) firms
A) economic profit in the long run is always greater necessarily earn positive
than it is in the short run. economic profit in the long
B) economic profit in the short run is always greater run but may earn positive
than it is in the long run. or negative economic
C) firms necessarily earn zero economic profit in the profit in the short run.
long run but may earn positive or negative economic profit in
the short run.

66) The figure below depicts the short-run market

equilibrium in a perfectly competitive market and the cost
curves for a representative firm in that market. Assume that
all firms in this market have identical cost curves.

The long-run market equilibrium quantity in this industry is

C) 700.
A) 300. D) more than 700.
B) 500.

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67) The figure below depicts the short-run market
equilibrium in a perfectly competitive market and the cost Given that the current
curves for a representative firm in that market. Assume that equilibrium price is $8,
all firms in this market have identical cost curves. what will happen to the
number of firms in this
market in the long run?

D) The number of
A) The number of firms in the market will not change firms in the market will
unless there is a change in either demand or in the cost of rise as firms enter the
production. market in response to
B) The number of firms in the market will fall as firms positive economic profit.
exit the market in response to negative economic profit.
C) It is impossible to determine whether the number of
firms in this market will rise or fall.

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68) The figure below depicts the short-run market
equilibrium in a perfectly competitive market and the cost
curves for a representative firm in that market. Assume that
all firms in this market have identical cost curves.

In the long run equilibrium in this market

Version 1 31
 units, but there is not
A) price will equal $5, and there will be 20 firms in enough information to
the industry. determine how many firms
B) price will equal $5, and there will be 10 firms in will be in the industry.
the industry.
C) price will equal $8, and there will be 20 firms in
the industry.
D) price will equal $5 and total output will equal 500

69) The figure below depicts the short-run market

equilibrium in a perfectly competitive market and the cost
curves for a representative firm in that market. Assume that
all firms in this market have identical cost curves.

A starting assumption about this industry was that all of the

firms in the market had identical cost curves. This assumption
is

D) realistic because
A) unrealistic because each firm is unique. firms rarely seek out cost-
B) realistic because any cost-saving innovation saving innovations.
adopted by one firm will be quickly adopted by others.
C) unrealistic because firms closely guard the details
of their production processes.

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70) Which of the following best describes how a perfectly shift to the right, leading to
competitive industry would respond to a sudden increase in
popularity of the product? The market demand curve would

D) a lower short-
A) a higher equilibrium price in the short run and run equilibrium price due
entry into the market in the long run. to the entry of firms into
B) a higher equilibrium price in the short run and a the market.
permanent increase in economic profit.
C) no change in the short-run equilibrium price, and a
higher long-run equilibrium quantity.

71) One assumption of the perfectly competitive model is

free entry and exit. This assumption most directly leads to the
implication that

rather than lower prices.

A) firms will have to spend money on advertising. D) a long-run
B) positive economic profit is only possible in the equilibrium cannot be
short run. achieved.
C) firms will compete on the basis of better service

72) Free entry and exit of firms is a characteristic of

D) industries in
A) all industries in the U.S. economy. which firms are earning
B) perfectly competitive industries. positive economic profit.
C) centralized economies.

73) The allocative function of price cannot operate unless

there is

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 D) neither free
A) a significant barrier to entry. entry no free exit.
B) both free entry and free exit.
C) either free entry or free exit.

74) In a market with barriers to entry

D) the implications
A) firms will earn zero economic profit in the long of Adam Smith's theory of
run. the invisible hand can be
B) economic profit will not fall to zero in the long run. expected to hold.
C) prices will direct productive resources toward
underserved markets.

75) Assume that all firms in this industry have identical

cost curves and that the market is perfectly competitive.

If S3 is the market supply curve, then in the short run, the

profit-maximizing level of output for a single firm in this
market is ______ gallons per week.

B) 200
A) 0

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 C) 400
D) 8,000

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76) Assume that all firms in this industry have identical If the market supply curve
cost curves and that the market is perfectly competitive. is given by S3, then we
would expect firms to

D) shut down in the

A) exit the market in the long run. short run.
B) enter the market in the long run.
C) neither exit nor enter the market in the long run.

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77) Assume that all firms in this industry have identical
cost curves and that the market is perfectly competitive. If S3 is the market supply
curve, then each firm in
this market will earn an
economic loss of ______
per week.

C) $2,000
A) $1,000 D) $3,000
B) $1,500

78) Assume that all firms in this industry have identical

cost curves and that the market is perfectly competitive.

If the market supply curve is given by S3, then what will

happen to the market supply curve in the long run?

C) It will shift to
A) It will stay at S3, but the quantity supplied will
increase.
B) It will shift to S2.

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S1.
D) It will stay at S3, but the quantity supplied will
decrease.

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79) Assume that all firms in this industry have identical In the long run, the
cost curves and that the market is perfectly competitive. equilibrium price will be
_____ per gallon, and each
firm's profit-maximizing
quantity will be ______
gallons per week.

C) $15; 300
A) $20; 400 D) $20; 4,000
B) $15; 6,000

80) Assume that all firms in this industry have identical

cost curves and that the market is perfectly competitive. In the long run, how much
profit will each firm in this
industry earn each week?

C) $1,500
A) $0 D) $2,000
B) $1,000

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81) According to the theory of the invisible hand, if buyers
and sellers are free to pursue their own self-interest, the result
often will be

D) an efficient
A) an incomplete allocation of resources. allocation of resources.
B) the exploitation of productive resources.
C) an equitable allocation of resources.

82) E-commerce and an internet presence are important to

many firms, requiring employees with specialized skills that
are in short supply. The invisible hand solves the employment
problem by

D) discouraging
A) encouraging the government to set up training firms from using new
programs to provide workers with the necessary skills. technologies.
B) giving workers an incentive to acquire the
necessary skills on their own in order to receive higher wages.
C) providing free internet access.

83) In a free market economy, the decisions of buyers and

sellers are

D) guided by
A) random. prices.
B) motivated by custom and tradition.
C) coordinated by the government.

84) Some people have argued that the government should provide free medical care

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to everyone. Under this system

no scarcity.
A) the price of medical care will allocate resources D) prices will not
efficiently. ration medical care so
B) the price of medical care will ration resources some other rationing
efficiently. method will be used.
C) prices will not ration medical care so there will be

85) If resources are misallocated in a perfectly competitive

market, then, in the long run, profit opportunities will

D) not bring about

A) bring about a more efficient allocation of a reallocation of resources
resources. unless firms are
B) bring about a less efficient allocation of resources. subsidized.
C) not bring about a reallocation of resources unless
there is government regulation.

86) Barriers to entry are forces that

D) limit the
A) limit consumers from purchasing new products. government from
B) limit new firms from joining an industry. intervening in markets.
C) promote a more efficient allocation of resources
across the economy.

87) Economic rent is

price.
A) the amount people pay for an apartment in a C) the difference
perfectly competitive market. between the payment made
B) the payment made to the owner of a factor of to the owner of a factor of
production, which is usually equal to the owner's reservation production and the owner's

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reservation price. owner's reservation price.
D) sometimes higher and sometimes lower than the

88) Lesedi is willing to babysit for $6 an hour. Her

neighbor has asked her to babysit for $8 an hour. Assuming
Lesedi accepts the offer

economic profit will be $0

A) her consumer surplus will be $2 per hour. per hour.
B) her economic rent will be $2 per hour.
C) her economic profit will be $8 per hour.
D) her accounting profit will be $8 per hour, and her

89) Which of the following is a characteristic of economic

rent?

D) It can never be
A) It equals economic profit minus accounting profit. negative.

B) It is driven towards zero by free entry.

C) It can be positive, zero, or negative.

90) Angelina Jolie's economic rent from starring in a

movie is equal to the difference between

actresses.
A) her initial salary offer and her final salary, D) her final salary
including royalties. and the least she would be
B) her final salary and what she could earn by starring willing to accept to star in
in a different movie. the movie.
C) her final salary and the average salary for leading

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91) Superstar professional athletes can sustain their
economic rents because

high.
A) team owners will pay anything to win a D) they have
championship. unique talents that they can
B) they are represented by highly skilled agents. sell to the highest bidder.
C) their opportunity costs of playing their sport are

92) Professor Plum, who earns $100,000 per year, read in

the paper today that the university pays its basketball coach
$1 million per year in exchange for his agreement to remain at
the university for at least three more years. The coach earns
more than Professor Plum because

unique talents.
A) the demand for sporting events exceeds the demand D) the coach has
for college degrees. more human capital than
B) universities value sports more than academics. does Professor Plum.
C) the coach is able to earn economic rent due to his

93) Unlike economic profit, economic rent

D) only applies to
A) can be less than zero. land.
B) may not be driven to zero by competition.
C) doesn't involve opportunity costs.

94) Duke is a highly skilled negotiator who could work for can for any other
many law firms. The law firm that hires Duke is able to
collect twice as much revenue per hour of Duke's time than it

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negotiator in town. The increased revenue will

D) be split between
A) be evenly split between Duke and the law firm to Duke and the law firm, but
maximize surplus. how it will be split cannot
B) all go to the law firm because the firm bears the be determined without
risk of running the business. more information.
C) all go to Duke because, if it didn't, another firm
could hire Duke away.

95) Factors of production are the most likely to earn

economic rent when they

D) have high
A) are used by many different firms. reservation prices.
B) cannot easily be duplicated.
C) are fixed in the short run.

96) The supplier of a factor of production has a

reservation price of $100. The purchaser of the factor of
production has a reservation price of $200. If the factor of
production is unique, then

D) a transaction
A) there will be no transaction since $200 is greater will occur, and the price
than $100. paid for the factor of
B) a transaction will occur, and the price paid for the production will be $100.
factor of production will be $150.
C) a transaction will occur, and the price paid for the
factor of production will be $200.

97) Consider a perfectly competitive industry in a long- significant cost-saving

run equilibrium. If a single firm in that industry discovers a

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production technology, then

run.
A) all firms in the market will earn an economic profit D) all the firms in
in the short run. the market will earn an
B) the rest of the industry will quickly adopt the new economic profit in the long
technology. run.
C) the firm will earn an economic profit in the long

98) Suppose several United States software design

companies compete with each other in a perfectly competitive
environment. If one company decides to move some of its
offices to a low-wage country in order to reduce operating
costs, then

D) the company
A) the other companies will still be able to remain that moves to the low-
profitable while operating solely in the United States. wage country will soon
B) the company that moves to the low-wage country return to the United States.
will earn a positive economic profit in the long run.
C) other companies will have an incentive to move to
the low-wage country in order to remain competitive.

99) A cost-saving innovation in a perfectly competitive

industry will lead to

D) a leftward shift
A) entry by new firms. of the industry supply
B) economic profits for new firms. curve.
C) economic profits for a few firms for a short time.

100) The statement, "If a deal is too good to be true, then it economic principle?
probably is not true," is most closely related to which core

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 D) The Scarcity
A) The Low-Hanging Fruit principle Principle
B) The No-Cash-on-the-Table Principle
C) The Cost-Benefit Principle

101) The No-Cash-on-the-Table Principle states that there

are

individuals in equilibrium.
A) never unexploited opportunities available to D) always
individuals. unexploited opportunities
B) never unexploited opportunities available to available to individuals.
individuals in equilibrium.
C) sometimes unexploited opportunities available to

102) If the market supply curve does not capture all of the
costs to society of producing an additional unit of good, then

D) the market will

A) the market equilibrium will be socially optimal. not be in equilibrium.
B) the market equilibrium will not be efficient.
C) the allocation of resources will be efficient.

103) If the market demand curve does not capture all of the
benefits to society of buying an additional unit of good, then

D) the market will

A) the market equilibrium will be socially optimal. not be in equilibrium.
B) the market equilibrium will not be efficient.
C) the allocation of resources will be socially optimal.

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104) The phrase "smart for one, but dumb for all" refers to the idea that the individual
pursuit of self-interest

D) doesn't always
A) only leads to an efficient outcome when everyone lead to an efficient
is well-informed. outcome.
B) always leads to an efficient outcome.
C) never leads to an efficient outcome.

105) Adam Smith believed that the individual pursuit of

self-interest

D) often promotes
A) is impossible in a perfectly competitive market. the broader interests of
B) should usually be discouraged. society.
C) always leads to an efficient outcome.

106) If it is possible to make a change that will help some

people without harming others, then the situation is

C) fair.
A) efficient. D) unfair.
B) inefficient.

107) A situation is efficient if it is

D) not possible to
A) possible to find a transaction that will make at least find a transaction that will
one person better off, even if others are made worse off. make at least one person
B) possible to find a transaction that will make better off without harming
everyone better off. others.
C) possible to find a transaction that will make at least
one person better off without harming others.

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108) If there is excess demand in a market, then this
suggests that

D) the market is in
A) there is no way to help some people without equilibrium.
harming others.
B) there is an opportunity for mutually beneficial
trades.
C) the market price is above the equilibrium price.

109) Which of the following describes a surplus-enhancing

transaction?

D) Your state
A) The federal government taxes the wealthy to pay government imposes a
for programs to help the poor. higher minimum wage
B) A firm lays off 25 workers in order to cut costs. than the one set by federal
C) A person pays $10.00 to buy a scoop of ice cream law.
at a baseball game.

110) Suppose your economics professor has an extra copy

of a textbook that he or she would like to give to a student in
the class. The scheme that is the most likely to result in an
efficient outcome is

D) giving the
A) randomly selecting one student to receive the textbook to the student
textbook. who has the lowest
B) auctioning off the textbook to the highest bidder. midterm score.
C) letting students take turns using the textbook.

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111) Serena has been waiting for Hamilton to come to her Serena finds someone who
local theater. When it finally does come, tickets cost $60. is willing to sell her a
Serena's reservation price is $75. But when Serena tries to buy ticket for $70, she should
a ticket, they are sold out. Serena decides to try to buy a ticket
from a scalper (a person who purchased extra tickets at the
box office with the intent to resell them at a higher price). If

D) purchase the
A) not purchase the ticket because it is overpriced. ticket even though doing
B) not purchase the ticket because the cost to the so will reduce total
scalper was only $60. economic surplus.
C) purchase the ticket because doing so will make her
$5 better off.

112) Serena has been waiting for Hamilton to come to her

local theater. When it finally does come, tickets cost $60.
Serena's reservation price is $75. But when Serena tries to buy
a ticket, they are sold out. Suppose Sven was able to purchase
a ticket at the box office for $60. Sven's reservation price for
the ticket is $65. If Sven attends Hamilton and Serena does
not, then this situation is

before the show was sold

A) inefficient because Sven and Serena could have out.
made a mutually beneficial trade. D) inefficient
B) efficient because Sven paid less for the ticket than because Serena would
his reservation price. have enjoyed the show too.
C) efficient because Sven arrived at the ticket counter

113) Suppose the market for coffee is in equilibrium at a

price of $5 per pound. This means that

reservation prices less than

A) any producer who sells coffee can earn a positive $5 per pound.
economic profit. C) everyone can
B) potential producers not producing coffee have afford to buy coffee.

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 D) potential consumers not buying coffee value it at less than $5 per pound.

114) The accompanying figure shows the supply and

demand curves for oranges in Smallville.

At the price of $4 per pound, sellers offer ______ pounds of

oranges per day, and buyers want to purchase ______ pounds
of oranges a day.

C) 20; 20
A) 10; 30 D) 30; 10
B) 10; 20

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115) The accompanying figure shows the supply and
demand curves for oranges in Smallville.

C) $8
A) $0 D) $12
B) $4

116) The figure below shows the supply and demand curves
for oranges in Smallville.

The marginal buyer values the fifteenth pound of oranges at

______.

C) $10
A) $0 D) $6
B) $2

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117) The accompanying figure shows the supply and
demand curves for oranges in Smallville. At a price of $4 per pound
there will be an excess
______ of ______ pounds
of oranges per day.

C) supply; 10
A) supply; 20 D) demand; 20
B) demand; 30

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118) The accompanying figure shows the supply and
demand curves for oranges in Smallville. What is the marginal cost
of producing the tenth
pound of oranges?

C) $4
A) $2 D) $5
B) $3

119) The figure below shows the supply and demand curves What is the marginal cost
for oranges in Smallville. of producing the thirty-
fifth pound of oranges?

C) $2
A) $6 D) $10
B) $14

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120) The accompanying figure shows the supply and
demand curves for oranges in Smallville. When this market is in
equilibrium, total
economic surplus is
______ per day.

C) $160
A) $0 D) $320
B) $80

121) The accompanying

figure shows the supply
and demand curves for
jeans in Smallville.

At the price of $60 per

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pair, sellers offer _____ pairs of jeans per day, and buyers wish to purchase ______
pairs of jeans a day.

C) 16; 16
A) 60; 20 D) 24; 8
B) 8; 24

122) The accompanying figure shows the supply and

demand curves for jeans in Smallville.

At a price of $60 per pair, there will be an excess ______ of

______ pairs of jeans per day.

C) demand; 16
A) supply; 24 D) demand; 8
B) supply; 16

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123) The accompanying figure shows the supply and
demand curves for jeans in Smallville.

Suppose jeans initially sell for $60 per pair. If the price of
jeans falls to $40 per pair, then total economic surplus will
increase by ______ per day.

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 C) $40
A) $160 D) $20
B) $80

124) The accompanying figure shows the supply and

demand curves for jeans in Smallville. The equilibrium price will
NOT lead to the largest
possible total economic
surplus if

D) there are
A) jeans are purchased by consumers with reservation diminishing returns in the
prices greater than $40. production of jeans.
B) the market for jeans is perfectly competitive.
C) the production of jeans generates air pollution.

125) A market equilibrium is only efficient if

market supply and demand

A) the consumer surplus and the producer surplus curves.
associated with a given transaction are equal. D) output is
B) consumer surplus and producer surplus are both distributed equitably
zero. among consumers.
C) all relevant costs and benefits are reflected in the

126) Suppose the production of cotton causes substantial environmental damage

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because the pesticides used by cotton farmers often make environmental damage that
their way into nearby rivers and streams and are very harmful results from the production
to fish and other wildlife. Economists would consider the of cotton to be a(n)

take into account when

A) relevant cost of production. determining their profit-
B) relevant cost of production only if cotton farmers maximizing level of
are charged a fine for the damage done. output.
C) relevant cost of production only if the
environmental damage negatively affects other firms.
D) implicit cost of production that cotton farmers will

127) Suppose the production of cotton causes substantial

environmental damage because the pesticides used by cotton
farmers often make their way into nearby rivers and streams,
and they are very harmful to fish and other wildlife. If cotton
farmers do not have to pay for the environmental damage
caused by the pesticides used to grow cotton, then the market
equilibrium price will be ______ and the market equilibrium
quantity will be ______.

D) inefficiently
A) inefficiently high; inefficiently low low; inefficiently low
B) inefficiently high; inefficiently high
C) inefficiently low; inefficiently high

128) Which of the following statements best expresses why

economic efficiency should be society's first goal?

of the poor, so government

A) Efficiency gives the poor an incentive to improve
their economic status.
B) Since the consensus on what is a fair distribution of
goods is impossible, efficiency is the next best goal.
C) People are not really concerned about the problems

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must address them instead.
D) Efficiency maximizes total economic surplus and
thereby allows other goals to be more easily achieved.

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129) If the demand curve fails to capture all of the benefits
of consumption, then the

require more consumption.

A) equilibrium price will be efficient, but the D) equilibrium
equilibrium quantity will be inefficiently large. price will be inefficiently
B) equilibrium price will be inefficiently low. high.
C) government needs to impose regulations that

130) Which of the following is not necessarily true in a

market equilibrium?

production.
A) Price represents the value of an extra unit of D) All mutually
consumption. beneficial trades have been
B) Both rich and poor have adequate access to the made.
good.
C) Price represents the cost of an extra unit of

131) Efficiency is an important goal because when markets

are efficient

D) there is no need
A) there is less income inequality. for government
B) the poor benefit more than the wealthy. intervention in the
C) there are more resources available to achieve other economy.
goals.

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132) A price ceiling that is set below the equilibrium price will result in

D) higher producer
A) higher total economic surplus. surplus.
B) a shortage of the good.
C) a surplus of the good.

133) A price ceiling that is set below the equilibrium price

will cause

D) an increase in
A) producer surplus to fall. demand.
B) total economic surplus to rise.
C) quantity supplied to exceed quantity demanded.

134) A price ceiling that is set above the equilibrium price

will result in

D) an increase in
A) a market price that is above the equilibrium price. consumer surplus.

B) a loss in total economic surplus.

C) no change in total economic surplus.

135) If an individual consumer is willing to pay $11 for one

unit of a good but is able to purchase it for $7, then his or her
consumer surplus from the purchase of that unit would be

C) $7.
A) $18. D) $4.
B) $11.

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136) If an individual consumer is willing to pay $14 for one
unit of a good but is able to purchase it for $12, then his or her
consumer surplus from the purchase of that unit would be

C) $13.
A) $2. D) $12.
B) $14.

137) If an individual producer is willing to produce one unit

of a good for $2.50 but is able to sell it for $7.50, then his or
her producer surplus from the sale of that unit would be

C) $5.
A) $10. D) $6.25.
B) $7.50.

138) If an individual producer is willing to produce one unit

of a good for $3.50 but is able to sell it for $15.00, then his or
her producer surplus from the sale of that unit would be

C) $7.50.
A) $3.50. D) $11.50.
B) $18.50.

139) The cumulative difference between the price

producers actually receive for a good and the lowest price for
which they would have been willing to sell it is called

B) lost surplus.
A) producer surplus. C) total economics

Version 1 62
surplus.
D) consumer surplus.

140) The sum of producer surplus and consumer surplus is

D) the marginal
A) normal profit. benefit of a good.
B) total economic profit.
C) total surplus.

141) Suppose a market is in equilibrium. The area below

the demand curve and above the market price is:

D) the loss in total

A) total economic surplus. economic surplus.
B) producer surplus.
C) consumer surplus.

142) Suppose a market is in equilibrium. The area below

the market price and above the supply curve is

D) total economic
A) the loss in total economic surplus. surplus.
B) producer surplus.
C) consumer surplus.

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 actually pay.
A) consumers' incomes and consumers' expenditures. D) consumers'
savings and consumers'
B) the amount consumers are willing to pay and the expenditures.
price they actually pay.
C) the suggested retail price and the price consumers

144) In a perfectly competitive market, if supply and

demand fully reflect all of the costs and benefits associated
with production and consumption, then total economic surplus
is maximized when

D) the market is in
A) price controls keep prices low enough that most equilibrium.
consumers can purchase the item.
B) consumer surplus and producer surplus are equal.
C) consumer surplus is greater than producer surplus.

145) Refer to the accompanying figure.

When the market is
unregulated, consumer
surplus is represented by
the area

C) AGI.
A) AJE. D) DBC.
B) ABC.

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146) Refer to the accompanying figure. When the market is
unregulated, producer
surplus is represented by
the area

C) DBC.
A) ABC. D) FHC.
B) DGF.

147) Refer to the accompanying figure.

If a price ceiling were
imposed at point G, then
excess demand would be
measured by the distance
between points

C) K and I.
A) G and I. D) F and K.
B) F and I.

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148) Refer to the accompanying figure. If a price ceiling were
imposed at point G, then
producer surplus would be
represented by the area
______.

C) 0GFQ2
A) DBC D) 0DFQ2
B) DGF

149) Refer to the accompanying figure.

If a price ceiling were
imposed at point G, the
consumer surplus would be
represented by the area
______.

C) JAE
A) BJEH D) GAEF
B) BAEH

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150) Refer to the accompanying figure. If a price ceiling were
imposed at point G, the
loss in total economic
surplus would be
represented by the area
______.

C) GJEF
A) FEC D) JAE + DGF
B) DAC

151) Refer to the accompanying figure. by consumers is

If this market is unregulated, the economic surplus received

Version 1 67
 C) $16.
A) $4. D) $24.
B) $8.

152) Refer to the accompanying figure.

If this market is unregulated, the economic surplus received

by producers is

C) $32.
A) $16. D) $48.
B) $24.

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153) Refer to the accompanying figure.

C) $48.
A) $20. D) $84.
B) $32.

154) Refer to the accompanying figure. If a price ceiling were

imposed at $4, consumer
surplus would be

C) $24.
A) $36. D) $28.
B) $20.

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155) Refer to the accompanying figure.
If a price ceiling were
imposed at $4, producer
surplus would be

C) $8.
A) $24. D) $4.
B) $16.

156) Refer to the accompanying figure. would be ______, which is

______ less than when the
market is unregulated
market.

If a price ceiling were imposed at $4, total economic surplus

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 C) $24; $16
A) $8; $24 D) $48; $8
B) $24; $8

157) Subsidies are most likely to

transfer surplus from

A) reduce consumer surplus. producers to consumers.
B) increase total economic surplus.
C) reduce total economic surplus.
D) leave total economic surplus unchanged, but

158) Suppose that in an effort to help single parents, the

government decides to pay part of the cost of childcare. This
measure would increase ______ in the market for childcare.

D) producer surplus
A) efficiency
B) consumer surplus
C) total economic surplus

159) Suppose a small

island nation imports sugar
for its population at the
world price of $1,500 per
ton. The domestic market
for sugar is shown below.

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 With no subsidy, the
equilibrium price of sugar
is ______ per ton, and the
equilibrium quantity is
______ tons per day.

C) $1,500; 12
A) $1,000; 12 D) $1,500; 8
B) $1,000; 8

160) Suppose a small island nation imports sugar for its

population at the world price of $1,500 per ton. The domestic
market for sugar is shown in the accompanying figure.

With no subsidy, what is consumer surplus?

C) $8,000 per day

A) $1,000 per day D) $9,000 per day
B) $4,000 per day

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161) Suppose a small island nation imports sugar for its With no subsidy, what is
population at the world price of $1,500 per ton. The domestic producer surplus?
market for sugar is shown in the accompanying figure.

C) $4,000 per day

A) $0 per day D) $8,000 per day
B) $1,000 per day

Version 1 73
162) Suppose a small island nation imports sugar for its
population at the world price of $1,500 per ton. The domestic If the government
market for sugar is shown in the accompanying figure. provides a subsidy of $500
per ton, the equilibrium
price of sugar will be
______ per ton, and the
equilibrium quantity will
be ______ tons per day.

C) $1,500; 12
A) $1,000; 12 D) $1,500; 8
B) $1,000; 8

163) Suppose a small island nation imports sugar for its

population at the world price of $1,500 per ton. The domestic
market for sugar is shown in the accompanying figure.

If the government provides a subsidy of $500 per ton, then

consumer surplus will be ______ per day.

C) $8,000
A) $1,000 D) $9,000
B) $4,000

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164) Suppose a small island nation imports sugar for its If the government
population at the world price of $1,500 per ton. The domestic provides a subsidy of $500
market for sugar is shown in the accompanying figure. per ton, then producer
surplus will be ______ per
day.

C) $4,000
A) $0 D) $8,000
B) $1,000

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165) Suppose a small island nation imports sugar for its
population at the world price of $1,500 per ton. The domestic If the government
market for sugar is shown in the accompanying figure. provides a subsidy of $500
per ton, then relative to
before the subsidy,
consumer surplus will
______ by ______ per day.

C) increase; $1,000
A) decrease; $500 D) increase; $5,000
B) decrease; $1,000

166) Suppose a small island nation imports sugar for its

population at the world price of $1,500 per ton. The domestic
market for sugar is shown in the accompanying figure.

If the government provides a subsidy of $500 per ton, then

the cost of subsidy, which must be borne by taxpayers, will be
______ per day.

B) $2,000
A) $500

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 C) $5,000
D) $6,000

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167) Suppose a small island nation imports sugar for its If the government
population at the world price of $1,500 per ton. The domestic provides a subsidy of $500
market for sugar is shown in the accompanying figure. per ton, then relative to
before the subsidy, total
economic surplus will
______ by ______ per day.

D) decrease;
A) increase; $6,500 $1,000
B) decrease; $6,500
C) increase; $1,000

168) The main problem with price subsidies is that they

D) lower total
A) do not help the poor afford essential goods and economic surplus.
services.
B) are not effective at lowering prices.
C) lead to a decrease in demand.

169) The fact that price subsidies reduce economic surplus

implies that

A) we can find an

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alternative policy that will make both the rich and the poor D) the quantity
better off. bought and sold in the
B) price subsidies help the rich but not the poor. market will fall.
C) price subsidies are not effective at lowering prices.

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Answer Key

Test name: Chap 07_8e_Frank

1) D
2) C
3) B
4) D
5) B
6) B
7) C
8) B
9) C
10) D
11) B
12) D
13) B
14) C
15) B
16) D
17) C
18) D
19) B

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20) C
21) C
22) C
23) B
24) C
25) A
26) B
27) A
28) B
29) D
30) B
31) B
32) A
33) D
34) B
35) B
36) D
37) C
38) B
39) B
40) D

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41) A
42) D
43) A
44) B
45) C
46) A
47) B
48) A
49) C
50) B
51) B
52) A
53) C
54) D
55) C
56) C
57) D
58) B
59) A
60) B
61) D

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62) A
63) A
64) C
65) C
66) B
67) D
68) A
69) B
70) A
71) B
72) B
73) B
74) B
75) B
76) A
77) C
78) B
79) C
80) A
81) D
82) B

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83) D
84) D
85) A
86) B
87) C
88) B
89) D
90) D
91) D
92) C
93) B
94) C
95) B
96) C
97) B
98) C
99) C
100) B
101) B
102) B
103) B

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104) D
105) D
106) B
107) D
108) B
109) C
110) B
111) C
112) A
113) D
114) A
115) D
116) C
117) D
118) C
119) B
120) C
121) D
122) B
123) A
124) C

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125) C
126) A
127) C
128) D
129) B
130) B
131) C
132) B
133) A
134) C
135) D
136) A
137) C
138) D
139) A
140) C
141) C
142) B
143) B
144) D
145) B

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146) C
147) B
148) B
149) D
150) A
151) C
152) A
153) B
154) B
155) D
156) B
157) C
158) B
159) D
160) B
161) A
162) A
163) D
164) A
165) D
166) D

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167) D
168) D
169) A

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