Question 1 2 pts
Opportunity cost is shown on the production possibilities frontier (PPF) graph
Group of answer choices
when we move from an inefficient point to the origin.
when we move from one point on the frontier to another point on the frontier.
at any one single point on the graph.
when we move from one unattainable point to an efficient point on the frontier.
when we move from the origin to any inefficient point.
Flag question: Question 2 Question 2 3 pts
Because of free entry and exit, companies in perfectly competitive markets
Group of answer choices
can earn positive or negative economic profits, but in the long run, firms have zero economic profits.
can earn positive economic profits, but in the long run, firms have zero economic profits.
can earn negative economic profits, but in the long run, firms have zero economic profits.
can earn positive or negative economic profits, but in the long run, firms have negative economic profits.
Flag question: Question 3 Question 3 3 pts
A price taker
Group of answer choices
will always make economic profits.
must set the price equal to the price charged by other sellers.
is a characteristic held by a monopolistically competitive firm.
has some control over the price it charges.
Flag question: Question 4 Question 4 3 pts
A monopoly charges ________ prices and produces a ________ quantity than a competitive market.
Group of answer choices
higher; higher
lower; higher
lower; lower
higher; lower
Flag question: Question 5 Question 5 3 pts
Price discrimination exists when a firm sells ________ goods at more than one price to ________ groups of customers based on their ______.
Group of answer choices
different; similar; willingness to pay
discounted; large; age
existing; distinct;age
identical; different; willingness to pay
Flag question: Question 6 Question 6 3 pts
Product differentiation
Group of answer choices
occurs in perfectly competitive markets and monopolistically competitive markets.
may occur in any market structure if the companies advertise to promote the differences in their product.
only occurs in monopolistically competitve markets.
occurs when a company has a monopoly because they are the only one selling the good or service.
Flag question: Question 7 Question 7 2 pts
The price elasticity of demand tells us
Group of answer choices
the movement along a supply curve when there is a change in demand.
how much more consumers will demand when incomes rise.
the extent to which demand increases as additional buyers enter the market.
none are correct
how sensitive buyers are to a change in price.
Flag question: Question 8 Question 8 3 pts
If barriers to entry are high and products are very differentiated, then (hint: think about which market structure it would resemble with the given characteristics)
Group of answer choices
the industry will look like monopoly
the industry is probably monopolistically competitive.
the industry is probably perfectly competitive.
the industry is probably a differentiated monopsony.
Flag question: Question 9 Question 9 3 pts
Which of the following is true for profit-maximizing firms operating in a competitive market, monopolistic competition, and monopoly?
Group of answer choices
Profits are maximized when marginal cost equals marginal revenue.
Firms earn positive economic profits in the long run.
Firms earn zero economic profits in the long run.
Price equals marginal revenue.
Flag question: Question 10 Question 10 3 pts
If there are only a few companies in an oligopoly, the total quantity of the good they produce jointly will likely be ________ the total quantity on the market if the market were perfectly competitive and ________ the total quantity on the market if the market were controlled by a monopoly.
Group of answer choices
greater than; less than
less than; less than
less than; greater than
greater than; greater than
Flag question: Question 11 Question 11 2 pts
If the income elasticity of demand for X is negative it means that X is
Group of answer choices
a normal good.
a complement
a necessity.
a substitute
an inferior good.
Flag question: Question 12 Question 12 3 pts
Economists typically measure the likely level of oligopoly power present in an industry by calculating the
Group of answer choices
concentration ratios.
capital ratios.
competition ratios.
reserve ratios.
Flag question: Question 13 Question 13 3 pts
Firms in this market structure are likely to advertise because they need to differentiate themselves from the other firms in the market.
Group of answer choices
oligopoly, perfect competition, and monopolistic competition
perfect competition and monopolistic competition
perfect competition and monopolistic competition
monopolistic competition
Flag question: Question 14 Question 14 3 pts
One of the fundamental causes of Perfectly Competitive markets is that
Group of answer choices
accounting profits become zero because of price wars.
there are more buyers than sellers, giving the buyers market power.
there are more sellers than buyers, giving the sellers market power.
there are so many buyers and sellers that each has no impact on the market price and the market output
Flag question: Question 15 Question 15 3 pts
In both perfect competition and monopolistic competition, each firm
Group of answer choices
has many competitors.
is likely to advertise.
sells a product that is at least slightly different from those of other firms.
has some monopoly power.
Flag question: Question 16 Question 16 3 pts
The law of demand states that, other things equal:
Group of answer choices
consumers will buy more of a product at high prices than at low prices.
the larger the number of buyers in a market, the lower will be product price.
price and quantity demanded are inversely related.
price and quantity demanded are directly related.
Flag question: Question 17 Question 17 3 pts
If there is currently a surplus of a product in a market, the price of the product
Group of answer choices
will rise in the near future.
is in equilibrium.
is below the equilibrium level.
is above the equilibrium level.
Flag question: Question 18 Question 18 3 pts
An increase in demand will cause
Group of answer choices
the demand curve to shift to the left, the price to decrease, and the quantity to decrease
the demand curve to shift to the left, the price to decrease, and the quantity to increase
the demand curve to shift to the right, the price to increase, and the quantity to increase
the demand curve to shift to the right, the price to increase, and the quantity to decrease
Flag question: Question 19 Question 19 3 pts
If there is an increase in supply,
Group of answer choices
there will be a movement along the supply curve
the supply curve will shift to the right causing the price to decrease.
the supply curve will shift to the left causing the price to decrease
the supply curve will be upward sloping
Flag question: Question 20 Question 20 3 pts
Assuming orange juice and Sunny Delight are substitutes, a lower price for Sunny Delight would result in a(n)
Group of answer choices
increase in demand for orange juice causing the quantity to decrease and the price to increase.
decrease in demand for orange juice causing the quantity to decrease and the price to decrease.
None of the above
increase in supply of Sunny Delight causing the quantity to increase and the price to decrease
Flag question: Question 21 Question 21 3 pts
A drought in California causes a major decrease in the amount of almonds that are harvested. As a result of the drought, the consumer surplus in the market for almonds (hint what will happen to the price?)
Group of answer choices
increases, and the consumer surplus in the market for almond milk increases.
increases, and the consumer surplus in the market for almond milk decreases.
decreases and the consumer surplus in the market for almond milk decreases.
decreases, and the consumer surplus in the market for almond milk increases.
Flag question: Question 22 Question 22 2 pts
Producer surplus at a price of $70 will be
Group of answer choices
$175
$50
$100
none of the above
Flag question: Question 23 Question 23 6 pts
Please use the graph above to CALCULATE the following at the equilibrium price:
Consumer Surplus =
Producer Surplus =
Flag question: Question 24 Question 24 2 pts
A price maker
Group of answer choices
is a characteristic held by a perfectly competitive firm
can sell its product at any price.
must set the price at the market price.
will always make economic profits.
has some control over the price it charges.
Flag question: Question 25 Question 25 2 pts
When two or more companies set prices or quantities, economists refer to them as
Group of answer choices
monopoly.
perfectly competitive market.
monopolistically competitive market.
colluding.
predatory pricing unit.
Flag question: Question 26 Question 26 2 pts
A player’s best strategy regardless of the strategies other players choose is called a(n)
Group of answer choices
efficient strategy.
dominant strategy.
equilibrated strategy.
surplus maximization strategy.
efficient strategy.
Flag question: Question 27 Question 27 2 pts
The ________ illustrates the combinations of two goods that a society can produce if all of its resources are being used efficiently.
Group of answer choices
law of positive statements
principle of comparative advantage
law of demand
production possibilities frontier (PPF)
concept of absolute advantage
Flag question: Question 28 Question 28 2 pts
A market is in equilibrium:
Group of answer choices
at all prices above that shown by the intersection of the supply and demand curves.
whenever the demand curve is downsloping and the supply curve is upsloping.
if there is no surplus of the product.
if the amount producers want to sell is equal to the amount consumers want to buy.
Flag question: Question 29 Question 29 2 pts
Consumer surplus is the
Group of answer choices
number of units that consumers want to buy at the market price.
total revenue earned from producing and selling a good.
difference between the price the seller receives and the willingness to sell it.
difference between the willingness to pay for a good and the price.
difference between the willingness to pay for a good and the willingness to sell it.
Flag question: Question 30 Question 30 2 pts
When looking at a graph, the area below the demand curve and above price is
Group of answer choices
external benefit.
dead-weight loss
spending surplus.
tax revenue.
consumer surplus.
Flag question: Question 31 Question 31 2 pts
The cross-price elasticity of demand can tell us whether goods are
Group of answer choices
elastic or inelastic.
complements or substitutes.
normal or inferior.
luxuries or necessities.
Flag question: Question 32 Question 32 2 pts
When your income increases from $400 to $450 per week, you buy 2 muffins instead of the 3 you used to buy. What is the income elasticity of demand?
Group of answer choices
-3.4
3.4
11.8
-2
Flag question: Question 33 Question 33 8 pts
Using the graph, please find the following after the tax is imposed:
Consumer Surplus
[ Select ]
[”
$150
“, ”
$125
“, ”
$60
“, ”
$45
“]
Producer Surplus
[ Select ]
[”
$20
“, ”
$120
“, ”
$45
“, ”
$60
“]
Total Tax Revenue
[ Select ]
[”
$60
“, ”
$80
“, ”
$8
“, ”
$120
“]
DWL
[ Select ]
[”
$120
“, ”
$80
“, ”
$40
“, ”
$128
“]
Flag question: Question 34 Question 34 2 pts
If Sima can make either 6 shirts or 7 vests per week, what is her opportunity cost of producing 1 vest?
Group of answer choices
6/7 vests
7/6 shirts
7/6 vests
6/7 shirt
Flag question: Question 35 Question 35 2 pts
If Pablo has the comparative advantage in producing a good, it means that he
Group of answer choices
he is more efficient at producing it
he has a lower opportunity cost of producing it
he can produce it using fewer materials
he is able to produce more than other producers
Flag question: Question 36 Question 36 2 pts
If a market is characterized by a negative externality,
Group of answer choices
the price that is being charged is higher than what is socially optimal because the government imposed a corrective tax.
the quantity produced in the market is too low because producers aren’t including all of the costs when deciding how much to produce
the quantity produced in the market is too high because producers aren’t including all of the costs when deciding how much to produce
the external cost should be added price that is charged
Collepals.com Plagiarism Free Papers
Are you looking for custom essay writing service or even dissertation writing services? Just request for our write my paper service, and we'll match you with the best essay writer in your subject! With an exceptional team of professional academic experts in a wide range of subjects, we can guarantee you an unrivaled quality of custom-written papers.
Why Hire Collepals.com writers to do your paper?
Quality- We are experienced and have access to ample research materials.
We write plagiarism Free Content
Confidential- We never share or sell your personal information to third parties.
Support-Chat with us today! We are always waiting to answer all your questions.