5 Written questions
5 Matching questions
- The primary force encouraging the entry of new firms into a purely competitive industry is:
- The demand for a necessity whose cost is a small portion of one's total income is:
- If the demand for farm products is price inelastic, a good harvest will cause farm revenues to:
- In the short run a purely competitive firm will always make an economic profit if:
- Consider This) Newspapers dispensing devices seemingly "trust" people to take only a single paper but the devices actually rely on the law of:
- a relatively price inelastic.
- b economic profits earned by firms already in the industry.
- c diminishing marginal utility.
- d P > ATC.
- e decrease
5 Multiple choice questions
- Alex's behavior is consistent with the endowment effect.
- less price elastic than the demand for Honda Accords.
- a change in price will have no effect on the quantity supplied.
- to firms in all types of industries.
- can influence decision-making with irrelevant information.
5 True/False questions
The fact that most medical care purchases are financed through insurance: → increases the amount of health care consumed by reducing the price of additional units of care.
For a linear demand curve: → to firms in all types of industries.
In which of the following market structures is there clear-cut mutual interdependence with respect to price-output policies? → oligopoly
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.
(Last Word) Oil wells and seasonal resorts will often shut down temporarily because: → change from being monopolistic to being competitive.