Show:
Basic Concepts
Supply and Demand
Costs of Production
Perfect Competition
Toss Up
100
The crucial problems of economics is a. establishing a fair tax system b. providing public goods and services c. allocating scarce resources to satisfy our wants/needs d. enacting a set of laws that protects resources from overuse
Answer: Scarcity (C).
100
A change in which variable will change the demand for a product? a. the price of the product b. expected future prices c. the number of firms in the market d. the quantity supplied of the product
What is expected future prices.
100
These costs depend on how much a firm produces.
What are variable costs.
100
Perfect competition is characterized by all the following except: a. identical products b. heavy advertising by individual sellers c. sellers are price takers d. a horizontal demand curve for individual sellers
What is heavy advertising by individual sellers
100
"When I find myself in times of trouble, Mother Mary comes to me . . . "
What is Let it Be
200
When one decision is made, the next best alternative not selected is called?
What is "Opportunity Cost"
200
If a decrease in income leads to an increase in the demand for macaroni, then macaroni is . . . a. an inferior good b. a necessity c. a neutral good d. a normal good
What is an inferior good.
200
The additional cost associated with producing an additional unit of some good.
What is marginal cost.
200
A very large number of small sellers who sell identical products imply . . . a. a multitude of vastly different selling prices b. a downward sloping demand curve for each seller's product c. the inability of one seller to influence price d. chaos in the market
What is the inability of one seller to influence price.
200
"Blame it all on my roots, I showed up in boots . . . "
What is Friends in Low Places.
300
According the theory of comparative advantage, a good should be produced where: a. the cost of real resources is the least b. its opportunity costs are the least c. production can occur with the greatest increase in employment d. production can occur with the lowest increase in employment
What is where the opportunity costs are the least.
300
If in the market for apples the supply has decreased, then ... a. the supply curve for apples has shifted to the right b. there has been a movement upwards along the supply curve for apples c. the supply curve for apples has shifted to the left d. there has been a movement downwards along the supply curve for apples
What is the supply curve for apples has shifted to the left.
300
This is left when you subtract explicit costs from revenue.
What is accounting profit.
300
If the market price is $40 in a perfectly competitive market, the marginal revenue from selling the 5th unit is . . . ? a. $8 b. $20 c. $40 d. $200
What is $40.
300
This song begins with the lyrics: "On a dark desert highway . . . "
What is "Hotel California."
400
This economic model shows the possible combinations of output that a country/economy can produce.
What is the production possibilities frontier or production possibilities curve or production possibilities model.
400
Which of the following would cause an increase in the supply of cheese? a. a decrease in the price of crackers (a complement) b. an increase in the price of cheese c. an increase in the price of a product that producers sell instead of cheese d. an increase in the number of firms that produce cheese
What is an increase in the number of firms that produce cheese.
400
As more and more workers are hired to work with a fixed amount of capital, output eventually begins to increase at a slower rate demonstrating this principle.
What is diminishing marginal returns.
400
If a firm shuts down in the short run, it will . . . a. break even b. declare bankruptcy c. suffer a loss equal to its variable costs d. suffer a loss equal to its fixed costs
What is suffer a loss equal to its fixed costs.
400
My loneliness is killing me and I must confess I still believe
What is Baby One More Time
500
These types of statements involve value judgments.
What are normative statements.
500
If a seller raises the price of their product, and as a result they experience a loss of revenue . . . what can we say about the price elasticity of demand for their product?
What is the demand for their product is relatively elastic.
500
A producer increases production from 10 to 20 units. When they do this, their total costs increase from $40 to $120. What is the marginal cost for the last 10 units?
What is $8 per unit.
500
If, for a given output level, a perfectly competitive firm's price is less than its average variable cost, the firm a. is earning a profit b. should shutdown c. should exit but keep producing d. should increase price
What is should shutdown.
500
Goodbye Norma Jean Though I never knew you at all You had the grace to hold yourself While those around you crawled
What is Candle In the Wind