Managerial Accounting Question Paper
Practice Exam
Name___________________________________
MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.
1) If the marginal benefit of pizza exceeds the marginal cost of pizza, then compared to the allocatively efficient quantity, we are producing too ________ pizza and too ________ of other goods. A) little; much
B) little; little
C) much; little
1)
D) much; much
Answer: A
2) ________ is the difference between the value of a good and the price paid for it summed over the quantity bought.
A) Consumer surplus
B) Shortage
C) Surplus
2)
D) Producer surplus
Answer: A
3) When the Smith's were shopping for their present home, the asking price from the previous …show more content…
The Smith's had decided they would pay no more than $245,000.00 for the house.
After negotiations, the Smith's actually purchased the house for $239,000.00. They, therefore, enjoyed consumer surplus of
A) $5,000.00.
B) $6,000.00.
C) $239,000.00.
3)
D) $11,000.00.
Answer: B
4) Joe is willing to pay $4 for his first slice of pizza and $3 for his second slice of pizza. If the market price is $2, on his two slices of pizza Joe receives a total consumer surplus of
A) $1.
B) $4.
C) $3.
4)
D) $2.
Answer: C
5) The three-year old truck on the used car lot had a price tag of $21,000.00. Edna said to herself, …show more content…
Using the above figure, what is the price of a steak dinner?
A) $10.00
B) $15.00
C) $30.00
39)
D) $20.00
Answer: B
40) The above figure shows Jane's budget line and two of her indifference curves. Which of the following happens to Jane's budget line if there were a decrease in her monthly dining out budget?
40)
A) It would shift leftward and not change its slope.
B) It would bend away from the origin, becoming more concave.
C) It would shift rightward and not change its slope.
D) It would bend toward the origin, becoming more convex.
Answer: A
41) The above figure shows Jane's budget line and two of her indifference curves. How many steak dinners will Jane purchase each month?
A) 8 steak dinners
B) 6 steak dinners
C) 4 steak dinners
41)
D) 10 steak dinners
Answer: D
42) The above figure shows Jane's budget line and two of her indifference curves. How many lobster dinners will Jane purchase each month?
A) 10 lobster dinners
B) 8 lobster dinners
C) 4 lobster dinners
D) 5 lobster dinners
Answer: D
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Name___________________________________
MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.
1) If the marginal benefit of pizza exceeds the marginal cost of pizza, then compared to the allocatively efficient quantity, we are producing too ________ pizza and too ________ of other goods. A) little; much
B) little; little
C) much; little
1)
D) much; much
Answer: A
2) ________ is the difference between the value of a good and the price paid for it summed over the quantity bought.
A) Consumer surplus
B) Shortage
C) Surplus
2)
D) Producer surplus
Answer: A
3) When the Smith's were shopping for their present home, the asking price from the previous …show more content…
The Smith's had decided they would pay no more than $245,000.00 for the house.
After negotiations, the Smith's actually purchased the house for $239,000.00. They, therefore, enjoyed consumer surplus of
A) $5,000.00.
B) $6,000.00.
C) $239,000.00.
3)
D) $11,000.00.
Answer: B
4) Joe is willing to pay $4 for his first slice of pizza and $3 for his second slice of pizza. If the market price is $2, on his two slices of pizza Joe receives a total consumer surplus of
A) $1.
B) $4.
C) $3.
4)
D) $2.
Answer: C
5) The three-year old truck on the used car lot had a price tag of $21,000.00. Edna said to herself, …show more content…
Using the above figure, what is the price of a steak dinner?
A) $10.00
B) $15.00
C) $30.00
39)
D) $20.00
Answer: B
40) The above figure shows Jane's budget line and two of her indifference curves. Which of the following happens to Jane's budget line if there were a decrease in her monthly dining out budget?
40)
A) It would shift leftward and not change its slope.
B) It would bend away from the origin, becoming more concave.
C) It would shift rightward and not change its slope.
D) It would bend toward the origin, becoming more convex.
Answer: A
41) The above figure shows Jane's budget line and two of her indifference curves. How many steak dinners will Jane purchase each month?
A) 8 steak dinners
B) 6 steak dinners
C) 4 steak dinners
41)
D) 10 steak dinners
Answer: D
42) The above figure shows Jane's budget line and two of her indifference curves. How many lobster dinners will Jane purchase each month?
A) 10 lobster dinners
B) 8 lobster dinners
C) 4 lobster dinners
D) 5 lobster dinners
Answer: D
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