5 Written questions
5 Matching questions
- In long-run competitive market equilibrium, price equals _______ and economic profit is ______.
- If demand is elastic, then:
- 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?
- Unemployment that occurs when there are not enough jobs for the number of people in the labor force is referred to as:
- a Minimum average total cost; zero
- b Oligopoly but not perfect competition.
- c Are owned by one individual.
- d Cyclical unemployment.
- e Quantity demanded is very responsive to changes in price.
5 Multiple choice questions
- The source of the free-rider dilemma.
- Flexible wages and prices
- To distinguish a movement along a demand curve from a shift of the demand curve.
- Decreases and the demand curve shifts to the left.
5 True/False questions
An individual wheat farmer has no market power because: → It must accept the equilibrium market price.
Suppose during a year an economy produces $10 trillion of consumer goods, $4 trillion of investment goods, $6 trillion in government services, and has $4 trillion of exports and $5 trillion of imports. GDP would be: → -$76.
Suppose a monopoly firm produces software and can sell 10 items per month at a price of $50 each. In order to increase sales by one item per month, the monopolist must lower the price of its software by $1 to $49. The marginal revenue of the 11th item is: → $39.
Externalities are the: → Avoid fixed costs in the short run.
Which of the following events would cause a rightward shift in the supply curve for automobiles? → Investment in telecommunications networks.