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40 Cards in this Set
- Front
- Back
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the fundamental problem of economics is?
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the scarcity of resources relative to human wants
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the four factors of production are?
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Land labor capital and entrepreneurship
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opportunity costs may b defined as
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the good and services that are forgone in order to obtain something else.
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a production possibility curve indicates ?
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the maximum combinations of good and services given its available resources and technology
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which determinant of demand changes in the personal computer market as more consumers are laid off from their work and cannot use the internet
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income
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the amount of satisfaction from consumption of an additional unit of a good or service is
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marginal utility
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price elasticity of demand is deined as
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percentage change in quantity demanded divided by the percentage change in price
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production function
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is a technological relationship between factors of production and output.
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profit
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the diffrence between total revenue and total cost
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the market value of all resources used in producing a good or service is expressed by
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total cost
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in short run, when a firm produces zero output total costs equals
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fixed cost
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which of the following would most liekly be a fixed cost.
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property insurance because it doesnt change in production process and is constant
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which of the following is equivalent to ATC
fc+mc fc+VC (FC+VC)/Q |
(FC+VC)/Q
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equation for profit is
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(P X Q) - TC
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if a firm can change market prices by altering its output then it has
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market power
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a competitive firm is one
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whose output is so small relative to the market supply that is has no effect on market price
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the demand curve confronting a competitive firm
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equals the marginal revenue curve
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profit per unit equals
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(TR-TC)/Q
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if economic profit are earned in a competitive market then over time
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additional firms will enter the market
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which of the following is a barrier to entry
patents control of distribution outlets well-established brand loyalty all the above |
patents
control of distribution outlets well-established brand loyalt |
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in a competitive market
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neither buyer nor seller have market power
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which of the follwoing is true for a monopolist
1faces a downward slope 2it must lower its price on all of its units to sell additional units 3, its marginal revenue is below its demand curve. all the above |
all the above
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the demand curve faced by an individual monopolist
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is the same as the market demand curve
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price discrimination allows a producer to
obtain greater total revenue, obtain higher profits, charge both higher and lower price- all the above |
obtain greater total revenue, obtain higher profits, charge both higher and lower price- all the above
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which of the following may characterize an oligopoly
a few firms, high barriers to entry, significant market power, all the above |
a few firms, high barriers to entry, significant market power, all the above
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if an oligopolist is going to change its price or output, its initial concern
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- the repose of its competitors
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oligopolists will maximize total profits for all of the firms in the market at the rate of output where
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MR=MC for the market
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if a monopolistically competitive firm raises its price it will
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if a monopolistically competitive firm raises its price it will
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which of the following problem is associated with output regulation of a natural monopoly
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loss of quality
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the case for deregulation of an industry rests on the argument that
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regulations are most costly to implement than the market failure that is to be corrected
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13 the reason pollution occurs is because people trend to
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maximize their personal welfare balancing private benefits against private costs
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14 the pursuit of a pollution-free environment is
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probably not in society’s best interest, in view of the extremely high opportunity costs
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individual farmers cannot influence market prices because
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- they have no market power
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in order to continue earning an economic profit, individual farmers must
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- continue to improve their productivity
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derived demand means increase in someone’s wages as a result of
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- increase in demand of goods the worker produces
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when the minimum wage is raised in a competitive market, ceteris paribus
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some workers are better off and some workers are worse off
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the trend in the us toward the merger of unions is driven by the labor movements’s desire to
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enhance their political power
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12 the purpose of the initial public offerings is to
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- raise funds for investment and growth by selling shares of the company to the public
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the us federal tax system results in a slight reduction in inequality of after
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tax income because- of the progressive nature of the federal income tax
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social security benefits paid by the federal government
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are in-kind transfers financed by taxes on workers and employers.
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