Economics 160
... 1. Price taker: a firm (or individual) that is so small relative to the market that it cannot significantly influence the price of the good it sells. For example, a single orange producer will not be able to significantly influence the price of oranges. It implies that the price taker faces a perfec ...
... 1. Price taker: a firm (or individual) that is so small relative to the market that it cannot significantly influence the price of the good it sells. For example, a single orange producer will not be able to significantly influence the price of oranges. It implies that the price taker faces a perfec ...
Midterm 2
... 35) Suppose that gasoline industry is perfectly competitive and in a long run equilibrium with gas prices of $2.00 per gallon. Also, assume that the gasoline industry is an increasing cost industry. If the government imposes a $.50 tax on each gallon of gas, in the long run, we should ...
... 35) Suppose that gasoline industry is perfectly competitive and in a long run equilibrium with gas prices of $2.00 per gallon. Also, assume that the gasoline industry is an increasing cost industry. If the government imposes a $.50 tax on each gallon of gas, in the long run, we should ...
Chapter 5: Consumer Choice
... affect the budget line? Recall: Normal vs. Inferior Goods: Has nothing to do with quality, but with choices based on income. Normal goods: goods that people demand as their income rises; chosen when the marginal utilities per dollar are equal after an increase in income. Inferior goods: goods ...
... affect the budget line? Recall: Normal vs. Inferior Goods: Has nothing to do with quality, but with choices based on income. Normal goods: goods that people demand as their income rises; chosen when the marginal utilities per dollar are equal after an increase in income. Inferior goods: goods ...
Chapter 3 – Demand Name
... ________________ good: when the price of fish increases and the price of chicken remains constant, a family purchases chicken. 2. In economic terms, the amount of satisfaction that an individual receives from consuming a product is called _______________. 3. _______________ demand exists when a chan ...
... ________________ good: when the price of fish increases and the price of chicken remains constant, a family purchases chicken. 2. In economic terms, the amount of satisfaction that an individual receives from consuming a product is called _______________. 3. _______________ demand exists when a chan ...
Lecture 11 - people.vcu.edu
... profit maximizing decisions of the firm, to be covered in chapter 13. A. Definitions of Costs: Prior to discussing costs for the firm, it is important to distinguish between costs for purposes of planning (economic costs) and out-of-pocket costs maintained for the purposes of accounting for taxes (a ...
... profit maximizing decisions of the firm, to be covered in chapter 13. A. Definitions of Costs: Prior to discussing costs for the firm, it is important to distinguish between costs for purposes of planning (economic costs) and out-of-pocket costs maintained for the purposes of accounting for taxes (a ...
Use a scantron. Mark “A” for “True” and “B” for “False.” 1) EBay A
... B) is a market because buyers and sellers are brought together to buy and sell. C) would be a market if there was only one physical location. D) cannot function as a market. E) is not a market because buyers can buy from only one seller at any point in time. 2) The "quantity demanded" of any good or ...
... B) is a market because buyers and sellers are brought together to buy and sell. C) would be a market if there was only one physical location. D) cannot function as a market. E) is not a market because buyers can buy from only one seller at any point in time. 2) The "quantity demanded" of any good or ...
Short-run Production Costs
... • Fixed, Variable and Total Costs • Fixed Costs (FC) – costs that do not vary with output. These costs are associated with the existence of a firm’s plant and must be paid even if output is zero (e.g. firm debts, bills, insurance premiums) • Variable Costs (VC) – costs are those that change with the ...
... • Fixed, Variable and Total Costs • Fixed Costs (FC) – costs that do not vary with output. These costs are associated with the existence of a firm’s plant and must be paid even if output is zero (e.g. firm debts, bills, insurance premiums) • Variable Costs (VC) – costs are those that change with the ...
Thinking like an Economist
... • Economic profit = Sales Revenue – Economic Cost • Economic cost = closely aligned with the return on invested capital (ROI), such as plant & equipment • Economic profit = Sales Revenue – economic cost – accounting cost ...
... • Economic profit = Sales Revenue – Economic Cost • Economic cost = closely aligned with the return on invested capital (ROI), such as plant & equipment • Economic profit = Sales Revenue – economic cost – accounting cost ...
Product Market Demand
... in income as a rightward shift in the demand curve. For inferior goods (I < 0), I QD . Therefore, one describes an increase in income as a leftward shift in the demand curve. Absolute value of income elasticity describes size of shift. ...
... in income as a rightward shift in the demand curve. For inferior goods (I < 0), I QD . Therefore, one describes an increase in income as a leftward shift in the demand curve. Absolute value of income elasticity describes size of shift. ...
mcq2
... b) a substitute. c) a complement. d) an inferior good. Answer: D Difficulty: Easy 21. Which combination of the properties given below rules out indifference curves that intersect one another? a) Completeness and diminishing marginal rate of substitution. b) Transitivity and more-is-better. c) More-i ...
... b) a substitute. c) a complement. d) an inferior good. Answer: D Difficulty: Easy 21. Which combination of the properties given below rules out indifference curves that intersect one another? a) Completeness and diminishing marginal rate of substitution. b) Transitivity and more-is-better. c) More-i ...
Middle-class squeeze
The middle-class squeeze is the situation where increases in wages fail to keep up with inflation for middle-income earners, while at the same time, the phenomenon fails to have a similar impact on the top wage earners. Persons belonging to the middle class find that inflation in consumer goods and the housing market prevent them from maintaining a middle-class lifestyle, making downward mobility a threat to aspirations of upward mobility. In the United States for example, middle-class income is declining while many goods and services are increasing in price, such as education, housing, child care and healthcare.