5 Written Questions
5 Matching Questions
- Consider This) Newspapers dispensing devices seemingly "trust" people to take only a single paper but the devices actually rely on the law of:
- In answering the next question(s), assume a graph in which dollars are measured on the vertical axis and output on the horizontal axis.
For a purely competitive firm, total revenue graphs as a:
- The primary force encouraging the entry of new firms into a purely competitive industry is:
- A supply curve that is a vertical straight line indicates that:
- Allocative efficiency is achieved when the production of a good occurs where:
- a P = MC.
- b economic profits earned by firms already in the industry.
- c straight, upsloping line.
- d diminishing marginal utility.
- e a change in price will have no effect on the quantity supplied.
5 Multiple Choice Questions
- creative destruction.
- Goods for which the income elasticity coefficient is relatively high and positive.
- change from being monopolistic to being competitive.
- demand is elastic at high prices.
5 True/False Questions
Because of "mental accounting:" → to firms in all types of industries.
The price elasticity of demand coefficient measures: → buyer responsiveness to price changes.
(Last Word) Oil wells and seasonal resorts will often shut down temporarily because: → change from being monopolistic to being competitive.
Alex was willing to pay $50 for the new World Cup soccer ball. When he received it as a gift, he was willing to sell it, but for no less than $80. According to behavioral economists: → utility.
What do the income effect, the substitution effect, and diminishing marginal utility have in common? → They all help explain the downsloping demand curve.