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5 Written questions

5 Matching questions

  1. The primary force encouraging the entry of new firms into a purely competitive industry is:
  2. The demand for a necessity whose cost is a small portion of one's total income is:
  3. If the demand for farm products is price inelastic, a good harvest will cause farm revenues to:
  4. In the short run a purely competitive firm will always make an economic profit if:
  5. Consider This) Newspapers dispensing devices seemingly "trust" people to take only a single paper but the devices actually rely on the law of:
  1. a relatively price inelastic.
  2. b economic profits earned by firms already in the industry.
  3. c diminishing marginal utility.
  4. d P > ATC.
  5. e decrease

5 Multiple choice questions

  1. Alex's behavior is consistent with the endowment effect.
  2. less price elastic than the demand for Honda Accords.
  3. a change in price will have no effect on the quantity supplied.
  4. to firms in all types of industries.
  5. can influence decision-making with irrelevant information.

5 True/False questions

  1. 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.


  2. For a linear demand curve:to firms in all types of industries.


  3. In which of the following market structures is there clear-cut mutual interdependence with respect to price-output policies?oligopoly


  4. 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.


  5. (Last Word) Oil wells and seasonal resorts will often shut down temporarily because:change from being monopolistic to being competitive.


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