Supply & Demand
Elasticity
Perfect Competition
Imperfect Competition
Potpourri
100
A decrease in the price of a good will result in this.
What is an increase in the quantity demanded.
100
The price elasticity of demand measures the responsiveness of the change in the:
What is quantity demanded to a change in the price.
100
A cost that does not depend on the quantity of output produced is called a:
What is a fixed cost.
100
A monopoly is a market characterized by:
What is a single seller.
100
Scarcity in economics means:
What is we do not have sufficient resources to produce all the goods and services we want.
200
The market price of airline flights increased recently. Some economists suggest that the price increased because there has been an increase in the number of business travelers. They believe this happened in the market for flights?
What is demand increased?
200
The price elasticity of demand for skiing lessons in New Hampshire is over 1.00. This means that the demand is ________ in New Hampshire.
What is price elastic.
200
The vertical difference between the average total cost curve and the average variable cost curve is this.
What is the average fixed cost.
200
One of the major differences between a monopolist and a purely competitive firm is that the monopolist has a ________ demand curve, while the purely competitive firm has a ________ demand curve.
What is downward-sloping; perfectly elastic
200
Microeconomics deals with:
What is individual decision makers in the economy.
300
The law of demand is illustrated by a demand curve that is:
What is downward sloping.
300
If the demand for golf is price-inelastic and your local public golf course increases the greens fees for using the course, you would expect:
What is an increase in total revenue received by the course.
300
A firm's total output times the price at which it sells that output is:
What is total revenue.
300
The market structure characterized by a few interdependent firms and barriers to entry is called:
What is oligopoly.
300
You decide to join the economics club, but this means you can't join the accounting club because it meets at the same time. This statement best represents this economic concept:
What is the real cost of something is what you must give up to get it.
400
The market equilibrium is found at the:
What is price where quantity demanded equals quantity supplied.
400
If a 20% price increase generates a 20% decrease in quantity demanded, then this is ________ response.
What is a unit-elastic response.
400
The profit-maximizing level of output for a perfectly competitive firm in the short run occurs where:
Where is marginal cost equals price.
400
The practice of charging different prices to different customers for the same good or service, even though the cost of supplying those customers is the same, is:
What is price discrimination.
400
Market failure occurs when the pursuit of self-interest leads to...
What is bad results.
500
This would result in a movement along the demand curve.
What is a change in supply that causes the price of the good available in the market to go up or down.
500
State governments place excise taxes on alcohol because:
What is it discourages drinking alcohol while raising revenue for the government.
500
Some factors that contribute to a firm achieving increasing returns to scale (or economies of scale) in the long run include:
What are size of the firm, opportunities for specialization, and the spreading effect. Larger firms have more opportunities to specialize both labor and capital to certain tasks. A worker, if allowed to specialize in a task, gets more skilled at performing that task as he or she produces more units of output. More skill translates to fewer mistakes and lower average cost. Other factors include spreading a very large initial setup cost over many units of output, managerial, accounting, and other organizational economies, and network externalities.
500
For the monopolistically competitive wild-caught seafood market, the demand curve for any individual firm is ________, and there are ________ producers of seafood.
What is downward sloping; many.
500
The local Taco Hut charges the same price for everything on its menu: $3 will buy a taco, a burrito, or nachos. You buy the taco and think that if you had not purchased the taco, you would have purchased the burrito. The opportunity cost of the taco is:
What is the enjoyment of the burrito.
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