問題一覧
1
the quantity demanded of Honda civics went down as the price increased, and the consumers that preferred civics started to buy Toyota corollas. this is because of
the substitution effect
2
If the price elasticity of a demand for a good is greater than one, then the demand for that good, with respect to price is:
Elastic
3
if the external cost of an activity is added to the private costs, then the
supply curve shifts left
4
game theory is important in understanding
interdependent outcomes
5
in the case of either a positive or negative externality, it will always be true that, relative to the social optimum
the quantity will be too large
6
suppose, production of a good is accompanied by and external cost = $2/Unit, social MC equals
private MC +2
7
the optimal amount of information to acquire before making a purchase is
the amount where the marginal cost of acquiring information equals the marginal benefit
8
market power measures the firms ability to
raise its prices without losing all of its sales
9
suppose all firms in a perfectly competitive industry are experiencing economic profits, one can hypothesize that
the numbers of firms will not change
10
during thanksgiving you participated in a pumpkin pie eating contest since you love pumpkin pie. you really enjoyed the first two pies, third one was on, but as soon as you ate the 4th you became I’ll and lost the contest.
decreases
11
which of the following determinants will cause movements along the supply curve of good x
the price of good x
12
which one of the following determinants will cause movements along the supply curve of good X?
the price of good x
13
if a monopolist could perfectly price discriminate
the marginal revenue curve and the demand curve would coincide
14
which of the following strategies could be used in collecting information about a good or service 1. visit stirs and ask a salesperson about the product or service 2. ask friends and family members for opinion 3. read consumer reports
1,2,3
15
the percentage change in quantity demanded that results from the percentage change in price is known as the
price elasticity of demand
16
given the total cost function TC=120+12*Q the average cost function is
120/Q+12
17
if the price is 10$ the quantity sold will be an amount that
sellers offer
18
the quantity of revlon nail polish demanded by Jen decreased after the price of revlon nail polish increased. Jen decides to find a cheaper brand of nail polish, this is called.
substitution effect of a price change
19
if a monopolist is facing a market demand curve equal to P=70-14*Q, then the slope of the monopolists marginal revenue curve is
-28
20
the principle of scarcity applies ti
everyone; consumers, firms, governments and nations
21
Marginal utility
Additional utility gained by consuming an extra unit of a good.
22
if Leslie can produce two pairs of pants an hour while Eva can make one pair an hour, then it must be the case that
Leslie has an absolute advantage
23
in a competitive labor market, the equilibrium wage rate is determined by
the interesection of labor demand and labor supply
24
between USA and Nepal, Nepal invests less in new favorites and equipments. This will cause
usas production possibilities curve will shift outward faster than Nepal
25
The economic surplus of a particular action is
The difference between the benefit and the cost of the action.
26
a variabel factor of production
is variable in both the short run and the long run
27
constants returns to scale occur when doubling of all inputs
exactly doubles output
28
the reason an efficient market outcome may not be considered a good outcome is
incomes of consumers are taken as given
29
if the equilibrium quantity is less than the socially optimal quantity, one can infer that
the production of this good has a positive externality
30
constant returns to scale occur when a doubling of all inputs
exactly doubles output
31
deadweight loss is
positive in markets where equilibrium is distorted by price controls or taxes
32
a profit maximizing perfectly competitive firm must decide
only on how much to produce, taking the price of the good as fixed.
33
choosing to study for an exam until the extra benefit (improved score) equals the extra cost (mental fatigue) is
an application of the cost-benefit principle
34
market power measures the firms ability to
raise its price without losing all of its sales
35
constant returns to scale occur when a doubling of all inputs
exactly doubles output
36
if the firms demand curve is perfectly elastic the firm must be
a perfect competitor
37
for a given question to be considered an economic question it would need to involve
limited resources and making a choice
38
as the price of gasoline increases, the quantity demanded of gasoline decreases, this is an application of
the law of demand
39
the general rule governing the hiring of workers it to
equate marginal labor costs to marginal labor benefits
40
the economic surplus of a particular action is
the difference between the benefit and the cost of the action
41
the reason we observe the law of diminishing marginal returns is that
the production facility eventually becomes congested if the firm keeps hiring workers
42
given the total cost function; TC=200+20*Q marginal costs are
20$
43
the economic surplus of a particular action is
the difference between the benefit and the cost of the action
44
if the price is 10$ each the quantity exchanged in the market if soccerbrough will be
more than 200 balls.
45
if a nation has the lowest opportunity cost of producing a good, that nation has an
comparative advantage
46
as the price of gasoline increases, the quantity demanded of gasoline decreases. this is an application of
the law of demand
47
which of the following circumstances does not involve game theory
firm behavior in a perfectly competitive market
48
a single price, profit maximizing monopolist
chooses the output level at which marginal revenue begins to increase
49
if the price is $15, the quantity sold will be an amount that
buyers wish to buy
50
to increase total revenues, firms with ….. demand should lower price and firms with ….:. demand should increase price
elastic; inelastic
51
the relationship between the cost of an activity and the amount of the acitivity consumers want is
negative
52
which of the following is an example of an activity with and external cost?
dumping chemicals in a lake
53
marginal utility is defined as the
additional utility gained by consuming an extra unit of a good
54
Deadweight loss is
positive in markets where equilibrium is distorted by price controls or taxes
55
the law of demand indicates that as the cost of an acitivity
falls, more of the activity will occur
56
the tradegy of the commons refers to the
overuse of resources that have no price
57
of the following characteristics, which one applies exclusively to a perfectly competitive firm
it can sell all it wants to at the market price
58
in order ti understand how the price of a good is determined in the free market, one must account for
the desires of demanders and suppliers
59
which of the following factors of production is likely to be variable in the short run?
the number of of employee-hours
60
if the price elasticity of demand for a pineapple is 0.75, a 4% increase in the price of pineapple will lead to a
3% decrease in the quantity demanded of pineapple
61
a profit maximizing perfectly competitive form must decide
only on how much to produce, taking price of the good as fixed
62
for two goods A and B, the rational spending rule is expressed as
(MU A/ P A)= MU B / P B)