5 Written questions
5 Matching questions
- The ability of a good or service to satisfy wants is called:
- A supply curve that is a vertical straight line indicates that:
- Suppose a purely competitive, increasing-cost industry is in long-run equilibrium. Now assume that a decrease in consumer demand occurs. After all resulting adjustments have been completed, the new equilibrium price:
- In the short run a purely competitive firm will always make an economic profit if:
- The MR = MC rule applies:
- a P > ATC.
- b a change in price will have no effect on the quantity supplied.
- c utility.
- d to firms in all types of industries.
- e and industry output will be less than the initial price and output.
5 Multiple choice questions
- buyer responsiveness to price changes.
- Alex's behavior is consistent with the endowment effect.
- They all help explain the downsloping demand curve.
- The firms in the market are part of a decreasing-cost industry.
5 True/False questions
Because of "mental accounting:" → people isolate purchases and sometimes make irrational decisions.
The demand for autos is likely to be: → to firms in all types of industries.
The primary force encouraging the entry of new firms into a purely competitive industry is: → economic profits earned by firms already in the industry.
Josh will receive a salary of $300,000 next year. According to prospect theory: → Josh will only be happy with that salary if his cost of living has not increased.
If a firm can sell 3,000 units of product A at $10 per unit and 5,000 at $8, then: → both allocative efficiency and productive efficiency are being achieved.