5 Written questions
5 Matching questions
- According to the law of diminishing marginal utility:
- Which of the following events would cause a rightward shift in the supply curve for automobiles?
- The Classical view of the economy is characterized by:
- A flat or horizontal demand curve for a firm indicates that:
- A market is said to be in equilibrium when:
- a Marginal utility of a good declines as more of it is consumed in a given time period
- b The firm has no market power.
- c The quantity demanded equals the quantity supplied.
- d An improvement in the technology used to produce automobiles.
- e A laissez-faire approach.
5 Multiple choice questions
- Market structure.
- MPC = 1 - MPS
- Price and quantity demanded are inversely related.
- Oligopoly but not perfect competition.
- Opportunity costs are experienced whenever choices are made.
5 True/False questions
One HEADLINE article in the text has the title "Fed cuts key interest rate half-point to 1 percent." Assuming the economy is in the upward sloping portion of the eclectic aggregate supply curve, what should happen to the price level and output as a result of the Fed's action, ceteris paribus? → Oligopoly but not perfect competition.
Which of the following is not consistent with a monopoly industry? → Wages.
Obstacles that make it difficult or impossible for would-be producers to enter a market are known as: → Barriers to entry.
Under both monopoly and perfect competition, a firm → operates where marginal revenue equal marginal cost.
If the price of battery-powered flashlights falls and the demand for flashlight batteries rises, then flashlights and batteries are: → Complements.