5 Written questions
5 Matching questions
- 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:
- Under what conditions would an increase in demand lead to a lower long-run equilibrium price?
- If for a firm P = minimum ATC = MC, then:
- Josh will receive a salary of $300,000 next year. According to prospect theory:
- If the demand for farm products is price inelastic, a good harvest will cause farm revenues to:
- a Alex's behavior is consistent with the endowment effect.
- b both allocative efficiency and productive efficiency are being achieved.
- c decrease
- d The firms in the market are part of a decreasing-cost industry.
- e Josh will only be happy with that salary if his cost of living has not increased.
5 Multiple choice questions
- buyer responsiveness to price changes.
- P > ATC.
- and industry output will be less than the initial price and output.
- increases the amount of health care consumed by reducing the price of additional units of care.
5 True/False questions
The process by which new firms and new products replace existing dominant firms and products is called: → utility.
(Last Word) Oil wells and seasonal resorts will often shut down temporarily because: → prices for their output temporarily fall below their average variable costs of production.
The ability of a good or service to satisfy wants is called: → utility.
Anchoring → can influence decision-making with irrelevant information.
The primary force encouraging the entry of new firms into a purely competitive industry is: → buyer responsiveness to price changes.