question
If no resources had a comparative advantage in the production of any good, the PPC would be:
answer
a downward sloping straight line
question
If both buyers and sellers expect the price of a good to fall in the future, what is the most likely scenario?
answer
Equilibrium price will fall with little change to equilibrium quantity
question
T/F: In a perfectly competitive market, firms set price but not quantities
answer
False
question
T/F: Oligopolistic firms are price takers, since they are not large enough to influence the market price
answer
False
question
GDP is 7 trillion. If consumption is 3.5 trillion, investment is 1.4 trillion and government purchases are 2.1 trillion, then...
answer
exports are equal to imports
question
An increase in nominal GDP implies an increase in
answer
either the price level, or output or both
question
C/K: An increase in unemployment may be due to a higher minimum wage
answer
Classical
question
C/K: Increased unemployment is probably due to a decline in the level of AD
answer
Keynesian
question
C/K: Market economies may recover slowly after they experience a significant decline in AD
answer
Keynesian
question
The best-selling mystery To the Nines by Janet Evanovich was sold in hardback for $25.95 when it was released. One year later, the publisher issued a softcover edition for $7.99. If the marginal cost of printing a softcover book is not much less than the marginal cost of printing a hardback, the pricing difference:
answer
is probably due to price discrimination in which the seller charges a higher price to consumers with less elastic demand.
question
If a monopolistically competitive firm is earning economic profits in the short run:
answer
these profits will be eliminated in the long run as new firms enter the industry.
question
Under monopolistic competition, a firm's ability to influence the price of the product it sells arises because:
answer
the product of each seller is differentiated from that of others.
question
Strategic decision making is most likely to occur in which market structure?
answer
Oligopoly
question
the upward sloping portion of the ATC curve is caused by
answer
the presence of fixed inputs
question
the upward sloping portion of the long run ATC curve is caused by
answer
diseconomies of scale
question
economies of scale
answer
a proportionate saving in costs gained by an increased level of production.
question
economies of scope
answer
cost savings from leveraging core competencies or sharing related activities among businesses in a corporation
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