ECON 312 Midterm Week 4 + Instructor’s explanations
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1. As a consequence of the condition of scarcity?
2. The opportunity cost of constructing a new public highway is the?
3. Which situation would most likely cause a nation's production possibilities curve to shift inward?
4. Which expression is another way of saying "marginal cost"?
5. Which would not be considered as a capital resource of a business by an economist?
6. Another term for capitalism is?
7. The simple circular-flow model shows that workers, entrepreneurs, and the owners of land and capital offer their services through?
8. Consumers express self-interest when they?
9. Which is one of the five fundamental questions that need to be dealt with in any economic system?
10. A characteristic of centrally planned economies is that?
11. An increase in demand means that?
12. A surplus of a product will arise when price is?
13. Which of the following is a consequence of rent controls established to keep housing affordable for the poor?
14. Which would cause an increase in quantity supplied of Product A?
15. If Product Y is an inferior good, a decrease in consumer incomes will?
16. If the price-elasticity coefficient for a good is .75, the demand for that good is described as?
17. Total revenue falls as the price of a good is raised, if the demand for the good is?
18. You are the sales manager for a software company and have been informed that the price elasticity of demand for your most popular software is less than 1. To increase total revenues, you should:?
19. To economists the main differences between "the short run" and "the long run" are that?
20. When universities announce a large tuition increase and follow it with an announcement that more financial aid will be available, they are assuming that students who pay full tuition?
21. Suppose that you could prepare your own tax return in 15 hours, or you could hire a tax specialist to prepare it for you in two hours. You value your time at $11 an hour. The tax specialist will charge you $55 an hour. The opportunity cost of preparing your own tax return is?
22. If a firm's revenues just cover all its opportunity costs, then?
23. The long run is a period of time, or a time frame, in which?
24. The law of diminishing returns only applies in cases where?
25. The phrase "don't cry over spilt milk" could be rephrased in economic terms by saying?
26. A fast-food company spends millions of dollars to develop and promote a new hamburger on its menu only to find that consumers won't buy it because they don't like the taste. From an economic perspective, the company should?
1. Mutual interdependence would tend to limit control over price in which market model?
2. Local electric or gas utility companies mostly operate in which market model?
3. The fast-food restaurants would be an example of which market model?
4. Sam owns a firm that produces tomatoes in a purely competitive market. The firm's demand curve is?
5. T-Shirt Enterprises is selling in a purely competitive market. It is producing 3,000 units, selling them for $2 each. At this level of output, the average total cost is $2.50 and the average variable cost is $2.20. Based on these data, the firm should?
6. A firm should always continue to operate at a loss in the short run if?
7. In pure competition, each extra unit of output that a firm sells will yield a marginal revenue that is?
8. Which phrase would be most characteristic of pure monopoly?
9. Barriers to entry?
10. The nondiscriminating pure monopolist must decrease price on all units of a product sold in order to sell more units. This explains why?
11. Which would definitely not be an example of price discrimination?
12. Monopolistic competition is characterized by firms?
13. Which set of characteristics below best describes the basic features of monopolistic competition?
14. In an oligopolistic market there are?
15. A high concentration ratio indicates that?
16. A cartel is?
17. The four factors of production are?
18. Refer to the diagram which refers to the Circular Flow Model in Chapter 2. Arrows (1) and (3) are associated with?
19. Refer to the diagram. A decrease in quantity demanded is depicted by a?
20. Refer to the information and assume the stadium capacity is 5,000. The supply of seats for the game?
21. Which type of goods is most adversely affected by recessions?
22. In the diagram Curves 1, 2, and 3 represent?
23. Refer to the diagram. The combination of computers and bicycles shown by Point G is?
24. Assume that the owners of the only gambling casino in Wisconsin spend large sums of money lobbying state government officials to protect their gambling monopoly. Economists refer to these expenditures as?
25. a.) A pure monopolist determines that at the current level of output the marginal cost of production is $2, average variable costs are $2.75, and average total costs are $2.95. The marginal revenue is $2.75. What would you recommend that the monopolist do to maximize profits? b.) Why might a business owner keep their business open but let it deteriorate, rather than shut it down? Will this profitability last?
26. Evaluate how the following situations will affect the demand curve for iPods?