Exhibit 2-1
A movement from point B to point D
a. could only happen through economic growth.
b. is necessarily a movement from a productive efficient point to a productive
inefficient point.
c. isa movement from a productive efficient point to another productive efficient point.
d. is necessarily a movement from a productive inefficient point to another productive
inefficient point.
Which of the following is a characteristic of perfect competition?
a. many sellers and few buyers
b. many buyers and few sellers
c. a heterogeneous product
d. buyers and sellers having all relevant information
e. high barriers to entry and exit
Exhibit 20-4
As a consequence of the depicted change in
the supply of X, the demand curve for Y shifted from D1 to D2. It follows that
a. X and Y are substitutes.
b. X and Y are complements.
c. X and Y are inferior goods.
d. demand for Y is price elastic.
Exhibit 23-1
The data in this table are relevant to a perfectly competitive firm because
a. its total revenue is different at different levels of quantities sold.
b. its total revenue is the same at all levels of quantities sold.
c. it doesn’t have to lower price to sell additional units of the product.
d. marginal revenue is greater than price.
Exhibit 22-5
Constant returns to scale are present
between
a. points A and B.
b. points A and C.
c. points B and C.
d. points B and D.
e. points C and D.
Exhibit 27-5
The marginal revenue product of the fifth unit of labor is
a. $270.
b. $20.
c. $330.
d. $120.
If good Z has an income elasticity of 1.0, then demand for good Z is income
__________ and the good is __________.
a. inelastic, normal
b. inelastic, inferior
c. elastic, normal
d. elastic, inferior
e. unit elastic, normal
Variables A and B are directly related. If we plot A on the horizontal axis and B on the
vertical axis, the line that connects combinations of A and B in a two-variable diagram
is
a. parallel to the horizontal axis.
b. downward-sloping (left to right).
c. parallel to the vertical axis.
d. upward-sloping (left to right).
e. a or c
The Justice Department considers a Herfindahl index
____________________________ to be representative of a concentrated industry.
a. less than 1,000
b. between 1,000 and 1,800
c. greater than 1,800
d. greater than 10,000
Every time you make a __________, you incur a(n) __________.
a. decision; efficient effect
b. choice; opportunity cost
c. competitive move; price
d. decision; mistake
e. none of the above
If the firms of an industry form a cartel, their goal is to
a. collectively increase output and thereby earn higher profits.
b. cut back on output and raise the price of their product to earn higher profits.
c. maintain a constant level of output, but increase price to earn higher profits.
d. maintain a constant price level, but increase output to earn higher profits.
Exhibit 39-1
Given the target price PT, the total deficiency payment made by the government is the
area of
a. 0P1CQ2.
b. 0PTBQ2.
c. PTBCP1.
d. PTBEP2.
Exhibit 2-2
If PPF2 is the relevant production possibilities frontier, a significant loss of resources
will
a. move this society from point D to point G on PPF .
b. move this society to PPF .
c. move this society to PPF .
d. not affect this society.
The major components of a bond include all of the following except its
a. maturity date.
b. face value.
c. price.
d. coupon rate.