5 Written Questions
5 Matching Questions
- If the demand for farm products is price inelastic, a good harvest will cause farm revenues to:
- Consider This) Newspapers dispensing devices seemingly "trust" people to take only a single paper but the devices actually rely on the law of:
- Which type of goods is most adversely affected by recessions?
- The MR = MC rule applies:
- a Goods for which the income elasticity coefficient is relatively high and positive.
- b to firms in all types of industries.
- c decrease
- d can influence decision-making with irrelevant information.
- e diminishing marginal utility.
5 Multiple Choice Questions
- a change in price will have no effect on the quantity supplied.
- Alex's behavior is consistent with the endowment effect.
- less price elastic than the demand for Honda Accords.
- increases the amount of health care consumed by reducing the price of additional units of care.
- prices for their output temporarily fall below their average variable costs of production.
5 True/False Questions
Allocative efficiency is achieved when the production of a good occurs where: → P = MC.
(Last Word) When patents on new medications expire, the market for those drugs: → change from being monopolistic to being competitive.
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: → change from being monopolistic to being competitive.
The demand for a necessity whose cost is a small portion of one's total income is: → less price elastic than the demand for Honda Accords.
The process by which new firms and new products replace existing dominant firms and products is called: → creative destruction.