ECON 2000 FINAL SHARKEY - Assignment Essays

question

A higher price of the good

answer

A lower quantity demanded of a good reflects, ceteris paribus,

question

A decrease in the demand for airline tickets

answer

Ceteris paribus, if buyers expect the price of airline tickets to fall in the future, then right now there should be

question

An increase in the demand for pens

answer

Assume that pencils and pens are substitutes. If the price of pencils rises ceteris paribus, then we will see

question

An increase in the price of perfume

answer

Ceteris Paribus, which of the following is most likely to cause an increase in the quantity supplied of perfume?

question

A decrease in the supply of corn syrup

answer

Ceteris Paribus, if the subsidies given to corn syrup producers decrease, then we can expect

question

An increase in the demand for the other

answer

Peanut butter and jelly are complements. A decrease in the price of one will result in

question

the price of wheat changes

answer

If corn and wheat are alternative pursuits for a farmer, a change in the supply of corn will take place when, ceteris paribus,

question

The quantity supplied has a large increase in response to an increase in price

answer

Supply is very elastic when

question

That price is greater than the equilibrium price

answer

If there is a surplus at a given price, then

question

An increase in the demand for electricity

answer

An increase in the equilibrium price of electricity can be caused by

question

Shortages of building materials and a slower recovery from the storm

answer

Suppose a hurricane hits Alabama, causing widespread damage to houses and businesses. The governor of Alabama places price ceilings on all building materials to keep the prices reasonable. Which of the following is the most likely result?

question

Willingness to pay - Actual Price

answer

Consumer surplus=

question

The supply curve will shift to the left

answer

Assume that steel is used to produce monkey wrenches. Ceteribus Paribus, if the price of steel rises, then

question

Left

answer

When the price of an item increases then the supply curve will shift

question

Right

answer

When the price of an item decreases then the supply curve will shift

question

Demand is inelastic

answer

A price decrease will cause total revenue to fall if

question

A decrease in the quantity demanded for digital cameras

answer

Ceteris paribus, if the price of a digital camera rises, then we can expect

question

Increase in price, quantity indeterminant

answer

At a University, what happens to the equilibrium price and equilibrium quantity when enrollment increases and at the same time the university destroys several older residence halls and apartment buildings

question

Lower his prices to increase revenue

answer

Sam owns a taco restaurant, and he conducted a consumer survey that indicates that the price elasticity of demand for his restaurant is 3.5. You would advise Sam to

question

Medicine

answer

Which of the following products will have more inelastic demand?

question

Factor mobility

answer

When workers move from one industry to another in response to demand changes, this is an example of

question

Regressive

answer

Suppose that if your income is 50,000, your tax is 5,000, but if your income is 100,000 your tax is 8,000. Such a tax is

question

Increases more rapidly than the population increases.

answer

Per Capita GDP will rise if GDP

question

Greater production of one good requires increasingly larger sacrifices of other goods

answer

According to the law of increasing opportunity costs,

question

Reflects the inability to exclude an individual from the benefits of someone else's purchase

answer

The free rider problem

question

On its own may not always provide the optimal mix of goods and services

answer

The Market

question

marginal cost equals marginal revenue

answer

Profit is maximized when

question

Is the short-run supply curve for a competitive firm at prices above the AVC curve

answer

The marginal cost curve

question

Additional firms will enter the market

answer

If economic profits are earned in a competitive market, then over time

question

Maximize total profit

answer

A profit-maximizing producer seeks to

question

P>ATC

answer

If a firm decides to make the investment decision to expand its capacity, then it must have discovered that

question

Price is driven down to minimum ATC

answer

A perfectly competitive market results in efficiency because

question

Increases at a decreasing rate

answer

As more satisfaction is achieved from consuming a good with diminishing marginal utility, then total utility

question

The marginal utility per dollar and their budget constraint

answer

When choosing among products, consumers look at

question

One end of her budget constraint will move away from the origin

answer

Assume Anna buys peanut butter and bread. If the price of peanut butter falls, then

question

fixed cost

answer

Sam's surf shop has a total costs of 2,000 dollars when they aren't producing surfboards. 2000 dollars is the what

question

Above the average total cost curve

answer

When the average total cost curve is rising, the marginal cost curve will be

question

Marginal revenue is equal to marginal costs

answer

Short-run profits are maximized at the rate of output where

question

P - ATC

answer

Profit per unit is equal to

question

If a firm must lower its price to sell additional output

answer

The marginal revenue curve is below the demand curve

question

will produce an output level smaller than the one that would minimize its average total costs

answer

The excess capacity theorem states that a monopolistic competitor:

question

Charging one price at all times for all customers

answer

Which of the following is not an example of price discrimination by the only movie theater in town?

question

Its market share will not be affected

answer

If a firm is producing at the kink in its demand curve and it decides to decrease its price, according to the kinked demand model

question

The profit of one firm depends on how its rivals respond to its strategic ways

answer

When firms are interdependent,

question

Mean that the long-run average total cost curve is downward-sloping

answer

Economies of scale over the entire range of market output

question

Price leadership

answer

Sky-High Skywriters raises its price, and the other four firms in the industry raise their prices in response. Coordination in this industry is accomplished by

question

Lower output and charge a higher price

answer

Compared to the outcome under a marginal cost pricing strategy, a monopolistically competitive firm will produce a

question

Entry eliminates economic profit, and exit eliminates losses

answer

In monopolistic competition, a firm's demand curve is tangent to the ATC curve in the long run because

question

Marginal benefit of regulation exceeds its marginal costs

answer

In cost- benefit analysis, regulatory intervention can be justified if the

question

Giving the firm a subsidy

answer

Adherence to marginal cost pricing will require

1 of 50

question

A higher price of the good

answer

A lower quantity demanded of a good reflects, ceteris paribus,

question

A decrease in the demand for airline tickets

answer

Ceteris paribus, if buyers expect the price of airline tickets to fall in the future, then right now there should be

question

An increase in the demand for pens

answer

Assume that pencils and pens are substitutes. If the price of pencils rises ceteris paribus, then we will see

question

An increase in the price of perfume

answer

Ceteris Paribus, which of the following is most likely to cause an increase in the quantity supplied of perfume?

question

A decrease in the supply of corn syrup

answer

Ceteris Paribus, if the subsidies given to corn syrup producers decrease, then we can expect

question

An increase in the demand for the other

answer

Peanut butter and jelly are complements. A decrease in the price of one will result in

question

the price of wheat changes

answer

If corn and wheat are alternative pursuits for a farmer, a change in the supply of corn will take place when, ceteris paribus,

question

The quantity supplied has a large increase in response to an increase in price

answer

Supply is very elastic when

question

That price is greater than the equilibrium price

answer

If there is a surplus at a given price, then

question

An increase in the demand for electricity

answer

An increase in the equilibrium price of electricity can be caused by

question

Shortages of building materials and a slower recovery from the storm

answer

question

Willingness to pay - Actual Price

answer

Consumer surplus=

question

The supply curve will shift to the left

answer

Assume that steel is used to produce monkey wrenches. Ceteribus Paribus, if the price of steel rises, then

question

Left

answer

When the price of an item increases then the supply curve will shift

question

Right

answer

When the price of an item decreases then the supply curve will shift

question

Demand is inelastic

answer

A price decrease will cause total revenue to fall if

question

A decrease in the quantity demanded for digital cameras

answer

Ceteris paribus, if the price of a digital camera rises, then we can expect

question

Increase in price, quantity indeterminant

answer

question

Lower his prices to increase revenue

answer

Sam owns a taco restaurant, and he conducted a consumer survey that indicates that the price elasticity of demand for his restaurant is 3.5. You would advise Sam to

question

Medicine

answer

Which of the following products will have more inelastic demand?

question

Factor mobility

answer

When workers move from one industry to another in response to demand changes, this is an example of

question

Regressive

answer

Suppose that if your income is 50,000, your tax is 5,000, but if your income is 100,000 your tax is 8,000. Such a tax is

question

Increases more rapidly than the population increases.

answer

Per Capita GDP will rise if GDP

question

Greater production of one good requires increasingly larger sacrifices of other goods

answer

According to the law of increasing opportunity costs,

question

Reflects the inability to exclude an individual from the benefits of someone else's purchase

answer

The free rider problem

question

On its own may not always provide the optimal mix of goods and services

answer

The Market

question

marginal cost equals marginal revenue

answer

Profit is maximized when

question

Is the short-run supply curve for a competitive firm at prices above the AVC curve

answer

The marginal cost curve

question

Additional firms will enter the market

answer

If economic profits are earned in a competitive market, then over time

question

Maximize total profit

answer

A profit-maximizing producer seeks to

question

P>ATC

answer

If a firm decides to make the investment decision to expand its capacity, then it must have discovered that

question

Price is driven down to minimum ATC

answer

A perfectly competitive market results in efficiency because

question

Increases at a decreasing rate

answer

As more satisfaction is achieved from consuming a good with diminishing marginal utility, then total utility

question

The marginal utility per dollar and their budget constraint

answer

When choosing among products, consumers look at

question

One end of her budget constraint will move away from the origin

answer

Assume Anna buys peanut butter and bread. If the price of peanut butter falls, then

question

fixed cost

answer

Sam's surf shop has a total costs of 2,000 dollars when they aren't producing surfboards. 2000 dollars is the what

question

Above the average total cost curve

answer

When the average total cost curve is rising, the marginal cost curve will be

question

Marginal revenue is equal to marginal costs

answer

Short-run profits are maximized at the rate of output where

question

P - ATC

answer

Profit per unit is equal to

question

If a firm must lower its price to sell additional output

answer

The marginal revenue curve is below the demand curve

question

will produce an output level smaller than the one that would minimize its average total costs

answer

The excess capacity theorem states that a monopolistic competitor:

question

Charging one price at all times for all customers

answer

Which of the following is not an example of price discrimination by the only movie theater in town?

question

Its market share will not be affected

answer

If a firm is producing at the kink in its demand curve and it decides to decrease its price, according to the kinked demand model

question

The profit of one firm depends on how its rivals respond to its strategic ways

answer

When firms are interdependent,

question

Mean that the long-run average total cost curve is downward-sloping

answer

Economies of scale over the entire range of market output

question

Price leadership

answer

Sky-High Skywriters raises its price, and the other four firms in the industry raise their prices in response. Coordination in this industry is accomplished by

question

Lower output and charge a higher price

answer

Compared to the outcome under a marginal cost pricing strategy, a monopolistically competitive firm will produce a

question

Entry eliminates economic profit, and exit eliminates losses

answer

In monopolistic competition, a firm's demand curve is tangent to the ATC curve in the long run because

question

Marginal benefit of regulation exceeds its marginal costs

answer

In cost- benefit analysis, regulatory intervention can be justified if the

question

Giving the firm a subsidy

answer

Adherence to marginal cost pricing will require

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