5 Written Questions
5 Matching Questions
- If marginal cost equals price, then _____ is at a maximum.
- The Classical view of the economy is characterized by:
- As an economy moves out of a recession into a period of economic growth, consumers tend to increase expenditures on:
- Consumer goods:
- In long-run competitive market equilibrium, price equals _______ and economic profit is ______.
- a A laissez-faire approach.
- b Durable goods.
- c Profit
- d Account for two-thirds of total U.S. output.
- e Minimum average total cost; zero
5 Multiple Choice Questions
- It must be minted by the government in order to have value
- Caused by a price ceiling.
- 1 ÷ MPS.
- Quantity demanded is very responsive to changes in price.
5 True/False Questions
Obstacles that make it difficult or impossible for additional producers to begin producing or selling in a new market are referred to as: → In the long-run economic profit is impossible.
The most desirable rate of output is the one that: → The market mechanism without government interference.
A natural monopoly is a firm that: → Charges a higher price than a competitive firm, ceteris paribus.
The demand for such items as salt, sugar and hand soap tend to be: → Relatively inelastic
Which of the following is not consistent with a monopoly industry? → Many firms produce identical or similar products.