MICROECONOMICS F201X

The basic difference between macroeconomics and microeconomics is:

In a market-oriented economy, the amount of a good that is produced is primarily decided by the interaction of:

The circular flow diagram of economic activity is a model of the:

Marginal thinking is best demonstrated by:

Scarcity exists because of:

The general pattern that consumption of the first few units of any good tends to bring a higher level of ______________ to a person than consumption of later units is a common pattern.

The lesson of _______________ is to forget about the money that's irretrievably gone and instead to focus on the marginal costs and benefits of future options.

"If I didn't have class tonight, I would save the $4 campus parking fee and spend four hours at work where I earn $10 per hour." The opportunity cost of attending class this evening is:

Most real-world choices aren't about getting all of one thing or another, instead, most choices involve _________________, which involves comparing the benefits and costs of choosing a little more or a little less of a good.

The nature of demand indicates that as the price of a good increases:

_____________________ refers to the total number of units that are purchased at that price.

______________________ are enacted when discontented sellers, feeling that prices are too low, appeal to legislators to keep prices from falling.

When __________________, a firm will supply a higher quantity at any given price for its output, and the supply curve will shift to the right.

Andy views beer and pizza as complements to one another. If the price of pizza decreases, economists would expect:

Which of the following would reduce the supply of microcomputers?

The _______________ is the only price where quantity demanded is equal to quantity supplied.

The elasticity of demand is defined as the percentage change in quantity demanded divided by the percentage change in _______________________.

If the demand curve for a life - savings medicine is perfectly inelastic, then a reduction in supply will cause the equilibrium price to:

A 25 percent decrease in the price of breakfast cereal leads to a 20 percent increase in the quantity of cereal demanded. As a result:

A 10 percent decrease in the price of potato chips leads to a 30 percent increase in the quantity of soda demanded. It appears that:

Taxes on goods with __________ demand curves will tend to raise more tax revenue for the government than taxes on goods with __________ demand curves.

If the supply curve for aspirin is perfectly elastic, then a reduction in demand will cause the equilibrium price to:

When economists are sketching examples of demand and supply, it is common to sketch a demand or supply curve that is close to vertical, and then to refer to that curve as ________________.

The term ______________________________ is used to describe the common pattern whereby each marginal unit of a consumed good provides less of an addition to utility than the previous unit.

Which of the following occurs simultaneously with an income effect?

The term ______________________ describes a situation where a _______________________ causes a reduction in the buying power of income, even though actual income has not changed.

Economists are able to determine total utility by:

Which of the following is considered to be a tell-tale signal that the point with the highest total utility has been found?

The typical pattern revealed in a budget constraint model shows that as the quantity consumed rises,

Firms in a perfectly competitive market are said to be

In a free market economy, firms operating in a perfectly competitive industry are said to have only one major choice to make. which of the following correctly sets out that choice?

________________ are opportunity costs of resources already owned by the firm and used in business.

_________________ is the additional cost of producing one more unit.

in the short run, firms cannot alter _______________.

In the long run, all inputs are ______________.

Economies of scale refers to a situation where as the level of output increase, the average cost _____________.

All of the following conditions occur when firms are in perfect competition expect:

In the long-run, seller profits for a firm in a perfectly competitive industry _________________.

If a firm cannot cover any of it its variable costs, then that firm should __________________.

Monopolists are said to be ______________________.

A monopolist's demand curve ___________________________.

All of the following legal mechanisms protect intellectual property except for ____________________.

____________________ prevent potential competitors from entering a market.

____________________ often arise in industries where the marginal cost of adding an additional customer is very low, once the fixed costs of the overall system are in place.

An _____________________ is given an exclusive right to sell a good buy the government.

____________________________ occurs when a firm dramatically lowers prices and takes a loss in order to drive competitors out of business, and then increases prices again once their competition is gone.

When retailers compete to sell similar but not identical products, they engage in what economists call ___________________________.

The perceived demand curve for a group of competing oligopoly firms will appear kinked as a result of their commitment to

The first step to be undertaken by a profit-maximizing monopolistic competitor wanting to decide what price to charge is to

When entry occurs in a monopolistically competitive industry,

In monopolistic competition, the end result of entry and exist is that firms end up with a price that lies

a diagram that views the economy as consisting of households and firms interacting in a goods and services market and a labor market

an economy where economic decisions are passed down from government authority and where the government owns the resources

the way in which different workers divide required tasks to produce a good or service

the study of how humans make choices under conditions of scarcity

when the average cost of producing each individual unit declines as total output increases

products (goods and services) made domestically and sold abroad

economic policies that involve government spending and taxes

the trend in which buying and selling in markets have increasingly crossed national borders

a market in which firms are sellers of what they produce and households are buyers

measure of the size of total production in an economy

products (goods and services) made abroad and then sold domestically

the market in which households sell their labor as workers to business firms or other employers

the branch of economics that focuses on broad issues such as growth, unemployment, inflation, and trade balance

interaction between potential buyers and sellers; a combination of demand and supply

an economy where economic decisions are decentralized, private individuals own resources, and businesses supply goods and services based on demand

the branch of economics that focuses on actions of particular agents within the economy, like households, workers, and business firms

see theory

policy that involves altering the level of interest rates, the availability of credit in the economy, and the extent of borrowing

system where private individuals or groups of private individuals own and operate the means of production (resources and businesses)

when human wants for goods and services exceed the available supply

when workers or firms focus on particular tasks for which they are well-suited within the overall production process

a representation of an object or situation that is simplified while including enough of the key features to help us understand the object or situation

typically an agricultural economy where things are done the same as they have always been done

a market where the buyers and sellers make transactions in violation of one or more government regulations