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:
- (Last Word) Oil wells and seasonal resorts will often shut down temporarily because:
- The price elasticity of demand coefficient measures:
- The demand for a necessity whose cost is a small portion of one's total income is:
- The fact that most medical care purchases are financed through insurance:
- a prices for their output temporarily fall below their average variable costs of production.
- b buyer responsiveness to price changes.
- c increases the amount of health care consumed by reducing the price of additional units of care.
- d relatively price inelastic.
- e diminishing marginal utility.
5 Multiple choice questions
- can influence decision-making with irrelevant information.
- straight, upsloping line.
- P = MC.
- and industry output will be less than the initial price and output.
- economic profits earned by firms already in the industry.
5 True/False questions
For a linear demand curve: → to firms in all types of industries.
If for a firm P = minimum ATC = MC, then: → both allocative efficiency and productive efficiency are being achieved.
The MR = MC rule applies: → demand is elastic at high prices.
(Last Word) When patents on new medications expire, the market for those drugs: → prices for their output temporarily fall below their average variable costs of production.
Josh will receive a salary of $300,000 next year. According to prospect theory: → Josh will only be happy with that salary if his cost of living has not increased.