question
Choices must be made by individuals, firms and the economy as a whole because of...
answer
Scarcity
question
The microeconomic perspective
answer
studies the rate of productivity growth in each sector and is a bottom-up view of the economy
question
(T/F) A firm makes decisions in pursuit of its own self-interest
answer
False. They make decisions to maximize profit
question
Tom decided to spend $100 on CD and cassette tapes. The price of a CD is $10 and the price of a cassette is $5. Which response is true.
answer
The opportunity cost of a CD is giving up 2 cassette tapes
question
Which is false when there are diminishing returns
answer
As more inputs are used, output decreases
question
If Japan has a comparative advantage in the production of computers, then...
answer
the relative cost of producing computers is lower in Japan and Japan will export computers
question
Along an individual demand curve, a decrease in the quantity demanded occurs when...
answer
price has increased
question
A leftward shift in the demand curve can NOT be caused by...
answer
an increase in the price of a substitute good
question
An increase in the price of apples is likely to result in...
answer
a decrease in quantity demanded of apples
question
Given a rise in the price of sugar (an input used in candy bars), the supply curve for candy bars would shift to the _________, the equilibrium quantity would ________, and the equilibrium price would _________.
answer
left; fall; rise
question
Which of the following is FALSE
answer
On the supply curve, a point at higher output level has a higher elasticity of supply
question
If a firm raises the price of its product and finds that its total revenues have decreased, that indicates that...
answer
demand for the product is price-elastic
question
If the price is set below the equilibrium price...
answer
then it is a price ceiling and there will be a shortage
question
If there is excess demand at the existing price(supply scarcity)...
answer
the price of the good tends to increase
question
If demand for a product is perfectly price-elastic, the demand curve is...
answer
horizontal
question
Which is NOT a possible consequence of rent controls
answer
all those who wish to rent apartments at going rents are able to find apartments that are available
question
If the price of a normal good decreases...
answer
the income and substitution effects each lead to increased consumption of the good
question
Which of the following is FALSE
answer
as the price rises, both substitution and income effects for inferior will work in the same direction
question
Which statement about income elasticity of demand is FALSE
answer
Income elasticity for an inferior good is less than one
question
A consumer is willing to pay $11 for his first beer, $7 for his second, and $4 for his third. If the price is $4, his total consumer surplus is...
answer
$10 = (11-4) + (7-4) + (4-4)
Order an Essay Now & Get These Features For Free:
Turnitin Report
Formatting
Title Page
Citation
Outline
