Show:
Unit 1 - Basic Economic Concepts
Unit 2 - Supply and Demand
Unit 3 - Production, Cost and Perfect Competition
Unit 4 - Imperfect Competition
Unit 5 - Factor Markets
100

What is the most desirable alternative given when making a choice?

Opportunity cost 

100

What market condition occurs when quantity supplied is greater than quantity demanded?

surplus

100

What formula determines a firms profit maximizing output level?

MR = MC

100

Where does a monopoly’s marginal revenue curve sit in relation to its demand curve

Below it 

100

Because the demand for resources depends on the demand for the final product, it is called what?

derived demand 

200

What does producing inside a PPC indicate?

inefficiency 

200

What market shortage or surplus is created by a binding price ceiling?

shortage

200

What is the economic time period where at least one input is fixed?

short run

200

What market structure features a few mutually interdependent firms?

oligopoly

200

How do you calculate marginal revenue product of labor?

marginal product times product price 

300
According to the law of demand, what happens to quantity demanded when price rises? 

it decreases

300

If the income elasticity of demand for a good is negative, why type of good is it?

inferior good

300

What is the shape of a perfectly competitive firms demand curve?

horizontal 

300

What occurs when a monopoly charges every customer their maximum willingness to pay?

perfect price discrimination 
300

What is the shape of the marginal resource cost curve for a firms demand in a competitive labor market?

horizontal

400

If a price increase for Good X causes demand for Good Y to rise, what are the goods?

substitutes

400

If an excise tax is placed on an inelastic good, who bears most of the tax burden?

the buyers
400

A firm should shut down in the short run if price falls below the minimum of what cost curve?

AVC

400
In game theory, what is a strategy that is always best, regardless of the opponents choice?

dominant strategy

400

What is a market with only one buyer of a resource called?

monopsony

500

If Country A gives up 2 shirts per bread and Country B gives up 3 shirts per bread, who has the comparative advantage in bread?

Country A

500

If a 10% price increase leads to a 25% drop in quantity demanded, what is the elasticity coefficient?

2.5 

500

What law explains why marginal product eventually decreases as more variable inputs are added?

Law of Diminishing Marginal Returns

500

What type of economic inefficiency do monopolies cause by underproducing?

Deadweight loss

500

What algebraic rule determines the least cost combination of labor and capital?

M PL/PL = M PK/PK