Econ 310 Practice Questions: Chaps. 1-3 1. Explicit
... Negatively-sloped, straight-line indifference curves imply that one of the goods has no effect on utility. that the goods are perfect complements. that the goods are perfect substitutes. that one of the goods is in fact a bad. ...
... Negatively-sloped, straight-line indifference curves imply that one of the goods has no effect on utility. that the goods are perfect complements. that the goods are perfect substitutes. that one of the goods is in fact a bad. ...
Chapter 10 Demand for Inputs (CF))
... output effect of a factor price increase (decrease) When a firm decreases (increases) its output in response to a factor price increase (decrease), this decreases (increases) its demand for all factors. ...
... output effect of a factor price increase (decrease) When a firm decreases (increases) its output in response to a factor price increase (decrease), this decreases (increases) its demand for all factors. ...
Price discrimination - McGraw Hill Higher Education
... should cease production whenever average revenue is less than average variable cost at every level of output. ...
... should cease production whenever average revenue is less than average variable cost at every level of output. ...
Chapter 13 Study Guide
... opponent's quantity is given, an equilibrium can be seen where the two reaction curves intersect. The final output will be identical for each firm, and the total output will be one-third greater than the output that would have resulted from a single-price profitmaximizing monopolist. Another attempt ...
... opponent's quantity is given, an equilibrium can be seen where the two reaction curves intersect. The final output will be identical for each firm, and the total output will be one-third greater than the output that would have resulted from a single-price profitmaximizing monopolist. Another attempt ...
0538469412_256038
... 11. To maximize profits, a monopsonist will hire the quantity of labor to the point where the marginal factor cost is equal to a. marginal physical product. b. marginal revenue product. c. total revenue product. d. any of the above. ANS: b. The MRP curve is the contribution of each worker to total r ...
... 11. To maximize profits, a monopsonist will hire the quantity of labor to the point where the marginal factor cost is equal to a. marginal physical product. b. marginal revenue product. c. total revenue product. d. any of the above. ANS: b. The MRP curve is the contribution of each worker to total r ...
Mankiew Chapter 18
... The Other Factors of Production With land and capital, must distinguish between: • purchase price – the price a person pays to own that factor indefinitely ...
... The Other Factors of Production With land and capital, must distinguish between: • purchase price – the price a person pays to own that factor indefinitely ...
Chapter 4
... 2- Inelastic supply when the value is smaller than unity (<1) It happens when change in price leads to lower change in the Qs (change in Qs, in percentage, is smaller than change in price). For instance, the price of a good increase by 20% leads to increase in Qs by 15%. In this case the absolute va ...
... 2- Inelastic supply when the value is smaller than unity (<1) It happens when change in price leads to lower change in the Qs (change in Qs, in percentage, is smaller than change in price). For instance, the price of a good increase by 20% leads to increase in Qs by 15%. In this case the absolute va ...
Chapter 13
... actions can be guaranteed, the threat of doomsday is diminished. The example of the former USSR and U.S. foreign policy is an example of sequential strategy at work. If a doomsday device is installed that guarantees retaliation when a missile attack is launched, then the likelihood of an attack is d ...
... actions can be guaranteed, the threat of doomsday is diminished. The example of the former USSR and U.S. foreign policy is an example of sequential strategy at work. If a doomsday device is installed that guarantees retaliation when a missile attack is launched, then the likelihood of an attack is d ...
Ch13.pps
... from selling wheat and uses this income to buy goods and services. The amount of wheat she chooses to produce depends on the price of wheat relative to the prices of other goods and services in the economy. If the relative price of wheat is high, she works hard and produces more wheat. If the relati ...
... from selling wheat and uses this income to buy goods and services. The amount of wheat she chooses to produce depends on the price of wheat relative to the prices of other goods and services in the economy. If the relative price of wheat is high, she works hard and produces more wheat. If the relati ...
Price Ceilings, Price Floors, and Excise Taxes
... Price can't rise above this level, so there's always excess demand. ...
... Price can't rise above this level, so there's always excess demand. ...
Demand for Local Public Goods
... Things you once learned, but you probably wanted to forget! How much does quantity demanded change if price changes? What happens to total expenditures? Suppose EP = 0. 0 = % Q / % P If % P is 10, % Q = 0, so total expenditures by 10% - that’s a lot! ...
... Things you once learned, but you probably wanted to forget! How much does quantity demanded change if price changes? What happens to total expenditures? Suppose EP = 0. 0 = % Q / % P If % P is 10, % Q = 0, so total expenditures by 10% - that’s a lot! ...
Chapter 3 - McGraw Hill Higher Education
... If a large number of people petition the government in order to get something, then there is a large demand for that item. WRONG! There is a demand for a product only if people are willing and able to buy the product. ...
... If a large number of people petition the government in order to get something, then there is a large demand for that item. WRONG! There is a demand for a product only if people are willing and able to buy the product. ...
it here
... 1 A farmer’s tomato crop is wilting, and he must decide whether or not to water it. If he waters the tomatoes, or if it rains, the crop will yield £1000 in profits, but if the tomatoes do not get any water, the crop will yield only £500. Operation of the farmer’s irrigation system costs £100. The fa ...
... 1 A farmer’s tomato crop is wilting, and he must decide whether or not to water it. If he waters the tomatoes, or if it rains, the crop will yield £1000 in profits, but if the tomatoes do not get any water, the crop will yield only £500. Operation of the farmer’s irrigation system costs £100. The fa ...
Exam Name___________________________________
... 6) Economists are reluctant to state that price controls are desirable or undesirable because A) sometimes price controls result in increases in economic efficiency and sometimes they result in decreases in economic efficiency. B) it is impossible to evaluate the impact on quantity demanded and quan ...
... 6) Economists are reluctant to state that price controls are desirable or undesirable because A) sometimes price controls result in increases in economic efficiency and sometimes they result in decreases in economic efficiency. B) it is impossible to evaluate the impact on quantity demanded and quan ...
Pure Competition
... produces the quantity associated with its marginal cost curve at that price. o The price taking firm’s short-run supply curve is that part of its marginal cost curve that lies above average variable cost. ©2004 Prentice Hall Publishing ...
... produces the quantity associated with its marginal cost curve at that price. o The price taking firm’s short-run supply curve is that part of its marginal cost curve that lies above average variable cost. ©2004 Prentice Hall Publishing ...
CFO11e_econ_ch13_GE
... a product for which there are no close substitutes in an industry in which all new competitors are barred from entry. Our focus in this chapter on pure monopoly (which occurs rarely) has served a number of purposes. First, the monopoly model describes a number of industries quite well. Second, the m ...
... a product for which there are no close substitutes in an industry in which all new competitors are barred from entry. Our focus in this chapter on pure monopoly (which occurs rarely) has served a number of purposes. First, the monopoly model describes a number of industries quite well. Second, the m ...
Supply and demand
In microeconomics, supply and demand is an economic model of price determination in a market. It concludes that in a competitive market, the unit price for a particular good, or other traded item such as labor or liquid financial assets, will vary until it settles at a point where the quantity demanded (at the current price) will equal the quantity supplied (at the current price), resulting in an economic equilibrium for price and quantity transacted.The four basic laws of supply and demand are: If demand increases (demand curve shifts to the right) and supply remains unchanged, a shortage occurs, leading to a higher equilibrium price. If demand decreases (demand curve shifts to the left) and supply remains unchanged, a surplus occurs, leading to a lower equilibrium price. If demand remains unchanged and supply increases (supply curve shifts to the right), a surplus occurs, leading to a lower equilibrium price. If demand remains unchanged and supply decreases (supply curve shifts to the left), a shortage occurs, leading to a higher equilibrium price.↑