Bxg ECON 2 - Assignment Essays

question

As a result of a decrease in the price of a hamburger, consumers buy more hamburger and more steak. This is an illustration of:

answer

D: Income effect

question

Which statement best illustrates the concept of diminishing marginal utility?

answer

B: The more bags of potato chips a person eats, the less additional satisfaction the person gets from eating another bag

question

Which is a determinant of the demand for housing?

answer

C: The price of housing

question

If service stations raise the price of gasoline an experience a decrease in demand for automobile tires, then gasoline and tires are:

answer

D: Complementary goods

question

Refer to the above graph. A decrease in demand would best be reflected by a change from:

answer

D: Line A to C

question

If farmers withhold some of their own current corn harvest from the market because they anticipate a higher price of corn in the future, then this would cause a decrease in the

answer

B: Supply of Corn

question

An improvement in the technology of production for a specific good is expected to cause:

answer

B: Lower prices and increased quantity sold

question

The price elasticity of demand is a measure of the:

answer

C: Responsiveness of quantity demanded to a change in price

question

Total revenue falls as the price of a good increases if price elasticity of demand is:

answer

A: Elastic

question

As price increases along a downloading linear demand curve:

answer

A: Price elasticity of demanded increases

question

The supply curve for cars will be more elastic the:

answer

B: Longer the time interval considered

question

Cross elasticity of demand is:

answer

A: Negative for complementary goods

question

Children who refuse to eat Brussels sprouts at dinner are making the statement that the marginal utility of Brussels sprouts is:

answer

B: Negative

question

If a rational customer is in equilibrium, then:

answer

C: The marginal utility per last dollar spent is the same for all goods consumed

question

Assume that a consumer purchases a combination of product A and product B such that the MUa/Pa=8 and MUa/Pa = 6. To maximize utility without spending more money, the consumer should:

answer

B: Purchase more of product A and less of product B

question

The assumed objective of a rational consumer is to maximize:

answer

D: Total Utility

question

The price ratio of the two products is the:

answer

A: Marginal rate of substitution

question

Assume that a consumer purchases two products and there is an increase in the consumer's money income. All other things equal, the most likely effect is:

answer

C: An outward shift in the budget line because the consumer can now purchase more of both products

question

All the combinations of two products which will yield the same total utility to a consumer are reflected in:

answer

B: An indifference curve

question

If a firm's revenues just cover all its opportunity costs, then:

answer

B: Economic profit is zero

question

Which statement is true?

answer

B: Underlying the law of diminishing returns is the assumption that at least one input remains fixed

question

At what point does marginal product equal average product?

answer

C: Where marginal product is equal to its minimum value

question

The reason the marginal cost curve eventually increases as output increases for the typical firm is because:

answer

C: of the law of diminishing returns

question

If marginal costs exceeds average variable cost, then:

answer

A: Average variable cost must be increasing

question

If a more efficient technology was discovered by a firm, there would be:

answer

D: A downward shift in the MC curve

question

If long-run average total cost decreases as output increases, this is due to:

answer

B: The law of diminishing returns

question

Diseconomies of scale occur mainly because:

answer

C: Of the inherent difficulties involved in managing and coordinating a large

question

Which is true under conditions of pure competition?

answer

C: No single firm can influence the market price by changing its output

question

In pure competition, the average revenue of a firm always equals:

answer

C: Marginal Revenue

question

A profit-maximizing firm in the short run will expand output:

answer

D: As long as marginal revenue is greater than marginal cost

question

A firm sells a product in a purely competitive market. The marginal cost of the product at the current output of 1000 units is $2.5

answer

A: Continue producing 1000 units

question

The individual firms short-run supply curve is that part of its:

answer

A. Average total cost revenue

question

The representative firm in a purely competitive industry:

answer

D. Will earn an economic profit of zero in the long run.

question

Which is true of normal profits?

answer

A. They are necessary to keep a firm in the industry in the long run

question

Productive efficiency refers to:

answer

A. Cost minimization, where P = minimum ATC

question

Allocative efficiency occurs when the:

answer

C. Marginal cost equals the marginal benefit to society

question

Under conditions of pure monopoly

answer

D. Entry is blocked

question

The demand curve confronting a non discriminating pure monopolist is

answer

B. Same as Industry Demand Curve

question

Under pure monopoly, a profit maxamizing firm will produce:

answer

A. in the inelastic range of its demand curve

question

Refer to the above table. The monopolist will realize a:

answer

C. profit of $4.50

question

Refer to the above table. Equilibrium price of the monopolist will be:

answer

B. $2.25

question

Many people believe that monopolies charge any price they want to without affecting sales, but:

answer

D. Marginal cost = Marginal revenue

question

The data below relate to a pure monopolist and the product it produces. What is the profit-maximizing output and price for this monopolist?

answer

B. P = $14; Q=4

question

When compared with the purely competitive industry with identical costs of production, a monopolist will produce:

answer

B. product differentiation allows each firm some degree of monopoly power

question

Which would be evidence of price discrimination at a local bar called the stabilizer?

answer

C. charging lower prices to customers wearing stabalizer tshirts

question

Monopolistic competition is characterized by firms;

answer

A. producing different products

question

A feature of monopolistic competiton is:

answer

C. Considerable control over price

question

Demand and marginal revenue curves are downward sloping for monopolistacally competitve firms because:

answer

B. Product differentiation allows each firm some degree of monopoly power.

question

In long-run equilibrium in a monopolistacally competitive industry:

answer

A. P= min AC

question

#52

answer

C. few sellers

question

#53

answer

D. All of the above

question

#54

answer

D. Mutual Interdependence

question

#55

answer

D. Greater the degree of market power in an industry

question

#56

answer

D. Collusion

question

#57

answer

C. Gain $75 million in profit and firm will lose $50 million in profit

question

#58

answer

A. Rivals will ignore price increases and match price cuts

question

#59

answer

C. price leadership

question

#60

answer

A. provides useful information to reduce search cost for consumers.

1 of 58

question

As a result of a decrease in the price of a hamburger, consumers buy more hamburger and more steak. This is an illustration of:

answer

D: Income effect

question

Which statement best illustrates the concept of diminishing marginal utility?

answer

B: The more bags of potato chips a person eats, the less additional satisfaction the person gets from eating another bag

question

Which is a determinant of the demand for housing?

answer

C: The price of housing

question

If service stations raise the price of gasoline an experience a decrease in demand for automobile tires, then gasoline and tires are:

answer

D: Complementary goods

question

Refer to the above graph. A decrease in demand would best be reflected by a change from:

answer

D: Line A to C

question

If farmers withhold some of their own current corn harvest from the market because they anticipate a higher price of corn in the future, then this would cause a decrease in the

answer

B: Supply of Corn

question

An improvement in the technology of production for a specific good is expected to cause:

answer

B: Lower prices and increased quantity sold

question

The price elasticity of demand is a measure of the:

answer

C: Responsiveness of quantity demanded to a change in price

question

Total revenue falls as the price of a good increases if price elasticity of demand is:

answer

A: Elastic

question

As price increases along a downloading linear demand curve:

answer

A: Price elasticity of demanded increases

question

The supply curve for cars will be more elastic the:

answer

B: Longer the time interval considered

question

Cross elasticity of demand is:

answer

A: Negative for complementary goods

question

Children who refuse to eat Brussels sprouts at dinner are making the statement that the marginal utility of Brussels sprouts is:

answer

B: Negative

question

If a rational customer is in equilibrium, then:

answer

C: The marginal utility per last dollar spent is the same for all goods consumed

question

Assume that a consumer purchases a combination of product A and product B such that the MUa/Pa=8 and MUa/Pa = 6. To maximize utility without spending more money, the consumer should:

answer

B: Purchase more of product A and less of product B

question

The assumed objective of a rational consumer is to maximize:

answer

D: Total Utility

question

The price ratio of the two products is the:

answer

A: Marginal rate of substitution

question

Assume that a consumer purchases two products and there is an increase in the consumer's money income. All other things equal, the most likely effect is:

answer

C: An outward shift in the budget line because the consumer can now purchase more of both products

question

All the combinations of two products which will yield the same total utility to a consumer are reflected in:

answer

B: An indifference curve

question

If a firm's revenues just cover all its opportunity costs, then:

answer

B: Economic profit is zero

question

Which statement is true?

answer

B: Underlying the law of diminishing returns is the assumption that at least one input remains fixed

question

At what point does marginal product equal average product?

answer

C: Where marginal product is equal to its minimum value

question

The reason the marginal cost curve eventually increases as output increases for the typical firm is because:

answer

C: of the law of diminishing returns

question

If marginal costs exceeds average variable cost, then:

answer

A: Average variable cost must be increasing

question

If a more efficient technology was discovered by a firm, there would be:

answer

D: A downward shift in the MC curve

question

If long-run average total cost decreases as output increases, this is due to:

answer

B: The law of diminishing returns

question

Diseconomies of scale occur mainly because:

answer

C: Of the inherent difficulties involved in managing and coordinating a large

question

Which is true under conditions of pure competition?

answer

C: No single firm can influence the market price by changing its output

question

In pure competition, the average revenue of a firm always equals:

answer

C: Marginal Revenue

question

A profit-maximizing firm in the short run will expand output:

answer

D: As long as marginal revenue is greater than marginal cost

question

A firm sells a product in a purely competitive market. The marginal cost of the product at the current output of 1000 units is $2.5

answer

A: Continue producing 1000 units

question

The individual firms short-run supply curve is that part of its:

answer

A. Average total cost revenue

question

The representative firm in a purely competitive industry:

answer

D. Will earn an economic profit of zero in the long run.

question

Which is true of normal profits?

answer

A. They are necessary to keep a firm in the industry in the long run

question

Productive efficiency refers to:

answer

A. Cost minimization, where P = minimum ATC

question

Allocative efficiency occurs when the:

answer

C. Marginal cost equals the marginal benefit to society

question

Under conditions of pure monopoly

answer

D. Entry is blocked

question

The demand curve confronting a non discriminating pure monopolist is

answer

B. Same as Industry Demand Curve

question

Under pure monopoly, a profit maxamizing firm will produce:

answer

A. in the inelastic range of its demand curve

question

Refer to the above table. The monopolist will realize a:

answer

C. profit of $4.50

question

Refer to the above table. Equilibrium price of the monopolist will be:

answer

B. $2.25

question

Many people believe that monopolies charge any price they want to without affecting sales, but:

answer

D. Marginal cost = Marginal revenue

question

The data below relate to a pure monopolist and the product it produces. What is the profit-maximizing output and price for this monopolist?

answer

B. P = $14; Q=4

question

When compared with the purely competitive industry with identical costs of production, a monopolist will produce:

answer

B. product differentiation allows each firm some degree of monopoly power

question

Which would be evidence of price discrimination at a local bar called the stabilizer?

answer

C. charging lower prices to customers wearing stabalizer tshirts

question

Monopolistic competition is characterized by firms;

answer

A. producing different products

question

A feature of monopolistic competiton is:

answer

C. Considerable control over price

question

Demand and marginal revenue curves are downward sloping for monopolistacally competitve firms because:

answer

B. Product differentiation allows each firm some degree of monopoly power.

question

In long-run equilibrium in a monopolistacally competitive industry:

answer

A. P= min AC

question

#52

answer

C. few sellers

question

#53

answer

D. All of the above

question

#54

answer

D. Mutual Interdependence

question

#55

answer

D. Greater the degree of market power in an industry

question

#56

answer

D. Collusion

question

#57

answer

C. Gain $75 million in profit and firm will lose $50 million in profit

question

#58

answer

A. Rivals will ignore price increases and match price cuts

question

#59

answer

C. price leadership

question

#60

answer

A. provides useful information to reduce search cost for consumers.

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