5 Written questions
5 Matching questions
- An industry in which a few large firms supply most or all of a product is known as:
- Which of the following is an example of the interest-rate effect, assuming the U.S. price level decreases?
- A monopolist:
- For a monopolist, marginal revenue is:
- Ceteris paribus, if the average price level falls, then the _____ effect will result in _____ in the purchases of goods and services.
- a Real balances; an increase
- b Charges a higher price than a competitive firm, ceteris paribus.
- c Always less than price, after the first unit.
- d The demand for loans decreases so interest rates decline and loan-financed purchases increase
- e An oligopoly.
5 Multiple choice questions
- How best to allocate scarce resources.
- A duopoly.
- The market price is below equilibrium
- In the long-run economic profit is impossible.
5 True/False questions
A HEADLINE article in the text, titled "Music Firms Settle Lawsuit" discusses price fixing by music companies and retailers. Which market structure is most likely to be successful in price fixing? → The cost of producing frozen yogurt decreases.
The labor force is smaller than the total population because the labor force does not include: → Cyclical unemployment should increase and real GDP should decline.
A price floor: → Charges a higher price than a competitive firm, ceteris paribus.
In a graph of the aggregate demand curve, a decrease in investment by businesses is represented by a: → A business owner uses his profits to play the lottery and wins.
Which of the following is most likely a fixed cost? → Toys produced by a U.S. firm located in China