What happens to Total Revenue with an increase in total supply and inelastic demand?
Increase in inelastic revenue goes up
100
Who is the softest kid?
Massie
100
Define Oligopoly
A market where there are at least two firms controlling the entire market.
100
Based on the Lorenz curve you learn that the Canada has a Gini ratio of .25 and United States has a Gini ratio of .85. Based on this fact you may conclude that...
The United States has more unequal distribution of wealth because more Americans have college degrees.
200
Within the circular flow, there are two markets. These markets are the...
Goods market and factor market
200
The slope of a demand curve is almost always...
negative, because with everything else equal, the same people will buy more of a good when its price is lower.
200
Kevin Kearney’s fixed cost of mowing lawns is $250 and his marginal cost is constant at $10 per lawn. If Kevin mows 5 lawns in one day, what is Bush’s average total cost?
$300
200
True or False: McDonalds is apart of the food market which is perfect competition.
False
200
Why is a lighthouse a "purely public good"?
Because anybody can use it, there are no restrictions or pricing
300
If there is unemployment in the economy, then the...
The economy is producing at a point INSIDE the PP Curve
300
Why does quantity demanded decrease when price increases?
People choose to reduce consumption of the item.
People "drop out" of the market for the item.
People find substitutes for the item.
300
The law of diminishing marginal returns is responsible for...
MC that first falls but eventually rises as output increases
300
In perfect competition, if one firm lowers prices the other firms...
Must lower prices
300
Your roommate blasts music while you're trying to study for the AP Micro Exam
What is a negative externality
400
If Toni has an absolute advantage in both sewing and ironing when compared to Tom, then
they might benefit from trading, but we need more information to determine in which task they should specialize.
400
If oranges and grapefruit are close substitutes, an increase in the price of oranges will shift the demand curve of
grapefruit to the right.
400
AFC= (Formula)
AVC - ATC
400
What is a cartel?
An organization created from a formal agreement between a group of producers of a good or service, to regulate supply in an effort to regulate or manipulate prices.
400
Production of energy creates a negative externality in the form of air pollution. What is the most effective policy to put in place to remove this negative externality...
A per unit tax on producers of energy
500
Carl's opportunity cost of creating a Web site is 40 pages of typing; Charles can produce one Web site for every 60 pages of typing. Hence the opportunity cost of typing one page for Carl is
1/40 of a website
500
If a commodity is inexpensive and its total utility great...
it is plentiful
500
What is the difference between economic and accounting profit?
Economic profit includes implicit costs
500
a particular "game" between two captured prisoners that illustrates why cooperation is difficult to maintain even when it is mutually beneficial.
What is prisoners dilema
500
Shepro earns $1,000 a week and pays a total of $200 in taxes. Hines earns $2,000 a week and pays a total of $300 in taxes. Based on the income and tax rates we can assume that the government has implemented a ______ tax rate.