The sale of goods abroad at a price below their cost and below the price charged in the
domestic market is called
a. priming.
b. coping.
c. invading.
d. dumping.
Suppose a consumer is purchasing Coke (c) and pretzels (p) in quantities such that he is
achieving consumer equilibrium. Then the price of Coke increases. Which of the
following will be true?
a. MUC/PC = MUP/PP
b. MUC/PC > MUP/PP
c. MUC/PC < MUP/PP
d. We cannot say for certain what will happen to the MUC/PC relative to the MUP/PP.
A side effect of an action that affects the well-being of third parties is
a. a marginal cost.
b. a marginal private benefit.
c. an externality.
d. a and b
e. all of the above
The minimum wage is an example of a
a. price door.
b. price wall.
c. price floor.
d. price ceiling.
In short-run equilibrium, the perfectly competitive firm may be making __________
economic profits.
a. positive
b. zero
c. negative
d. a or b
e. any of the above
Exhibit 20-9
What is the price elasticity of demand between $4 and $6?
a. 0.825
b. 0.833
c. 1.25
d. 1.20
The question of how a tax change might impact U.S. economic output is most closely
associated with the study of
a. microeconomics.
b. managerial economics.
c. macroeconomics.
d. consumer economics.
University A sets tuition at the equilibrium level based on price and then imposes
entrance requirements in the form of minimum high school GPA and SAT scores.
Enrollment at this school will likely be
a. at the equilibrium level.
b. below the equilibrium level because of the use of non-price rationing devices.
c. above the equilibrium level because of the combination of price and the use of
non-price rationing devices.
d. none of the above
In the United States, patents are granted to inventors of a product or process for a period
of
a. unlimited time.
b. 10 years.
c. 20 years.
d. 25 years.
Exhibit 31-4
If a negative externality exists, then the market ____________output by the amount
________________.
a. overproduces; Q1
b. underproduces; Q2
c. overproduces; Q1 – Q2
d. underproduces; Q2 – Q1