micro economics
_____________ predicted that economic activity would evolve in cycles of misery and catastrophe.
thomas malthus
Assume that you expect a "normal profit" of $40,000 on $100,000 invested in your new business. Explicit costs are $70,000 and your total revenue is $120,000, then your economic profit is $ ______________ .
10,000
Figure 8.2. Monopoly cost and revenue relationships. In Figure 8.2, Total Cost at the profit maximizing output is $ ____________ .
1197
In America during the early 1900's ________________ became an economic force as the role of workers became fundamental for economic growth.
labor unions
Many firms exercise ____________________ such as when different prices are charged by telephone companies for individuals compared to businesses.
price discrimination
In this Circular Flow example ... if shifts in Supply and Demand (driven by "choices") change the "Average Price" to $4.00 then the total dollar value of Consumer Spending would be ____________ .
$7500 *$10,000* $8000 $4000
In Figure 4.7 if MB is greater than MC as is the case in a price of ______ then, under production is present and a deadweight loss is incurred in social benefit.
$9 $8.50 *$8* $7.50
What is the benefit of moving from B to C ?
***3 units of clothing*** 9 units of clothing 2 computers 4 computers
Karl Marx argued that ___________ would lead to socialism and then to communism as armies of unemployed workers would force economic change.
***capitalism*** fascism democracy totalitarianism
Entrepreneurs are well compensated in a market economy if they provide high utility to consumers at a relatively low ___________ .
***cost*** utility profit rent
The process of production is determined by the ____________ which are the economic resources used for creating output.
***factors of production*** consumer utilities national sovereignties labor and land
Productive efficiency is gaining the most _________ with a given amount of input, but not relating output to consumer utility.
***output*** sovereignty resources satiation
__________ economists support production of some public goods such as national defense.
*Most* Only a few All No
In Table 4.3 the ___________ is $3.00 .
*Total Surplus* Consumer Surplus Producer Surplus Producer Surplus Both a. and b. are correct
If __________ supply is demanded by consumers, suppliers are often able to increase the product price and provide a larger quantity.
*a larger* a smaller the same no (zero)
Stability is the goal of economics seeking to ______________ so that an economy does not experience high inflation.
*allocate resources* avoid too much endorphin avoid too little adrenaline have the right amount of oxytocin
Macroeconomics analyzes how we choose to use our resources on an aggregate (national) level and includes measures of performance such as _________________.
*both b and c* inflation unemployment consumer utility patterns
Allocation of resources within the ___________ system is accomplished through a market approach where buyers and sellers meet.
*capitalistic* autocratic traditional command
If consumers think that prices would go down in the future, they will __________ their present demand.
*decrease* not change increase none of the above
The Law of Supply states that there is a(n) _________ relationship between price and quantity.
*direct* indirect positive negative
There is much _____________ among economists about what goals should be emphasized and how government policy and choices should be made.
*disagreement* angst agreement gnashing of teeth
Economists assume that consumer satisfaction (consumer surplus) and supplier satisfaction (producer surplus) are maximized when resources are ____________ allocated.
*efficiently* minimally optimally none of the above
If increased taxes are imposed on producers, ___________ products will be provided in the market at each price (shift left).
*fewer* more the same amount of none of the above
If price decreases, a consumer is willing to buy __________.
*more* less none of the above
Being "rational" means being able to clearly understand a) what one needs and b) the __________ in gaining the fulfillment of each need.
*reality of cost* absence of risk absence of uncertainty lack of any benefit
Consider the data in the table below. Assume that the price and marginal revenue are $25. If this firm produced at Q = 1, then it would incur a loss of $ ______.
$0
In Figure 9.1 above the Monopolistic Competitor would produce with an economic profit of _________ per unit is $1.00 with 285 as the quantity resulting in a total profit of $285 ($1.00 * 285 = profit of $285).
$1.00
Use the following table of total cost (TC) related to output (quantity produced) to answer this question: What is the Marginal Cost of the 5th unit of output ?
$100
Use the following table of total cost (TC) related to output (quantity produced) to answer this question: For an out put of 3 units, what is the Total Fixed Cost ?
$110
Use the following table of total cost (TC) related to output (quantity produced) to answer this question: For an out put of 3 units, what is the Total Variable Cost ?
$150
Figure 7.1 Competitive supply and demand relationships, industry and firm. The equilibrium price for this product is $ ______.
$3
In this Circular Flow example ... if shifts in Supply and Demand (driven by "choices") change the "Average Price" to $3.00 then the total dollar value of Goods and Services produced would be ____________ .
$3000 $6000 $2500 *$7500*
The ATC of producing four Brownies is $ _________ .
.70
These utility concepts can be applied to a decision of what to purchase given utility patterns for two goods as listed in the figure below. If you assume that good R and good S both cost $2 each, how many of each would you purchase if you have an income of $8?
1 R and 3 S
In Figure 4.6 the Producer Surplus is $ _________ .
1.5
If the coefficient of elasticity equals 1.7 on a product's demand line, then a 1% decrease in price will yield a __________ in quantity demanded.
1.7% increase
In the table below, for every price that the D#1 increases, the Quantity Demanded indicates _______ more sales than the original demand schedule D. Price Quantity Demanded Quantity Demanded #1 $10 1 5 9 2 6 8 3 7 7 4 8 6 5 9
2 3 * 4* 5
What is the benefit of moving from B back to A ?
2 units of clothing 4 units of clothing 9 computers ***3 computers***
If the coefficient of elasticity of demand is 2, then a 1 percent increase in price would cause a _________ in quantity demanded.
2% decrease
Figure 8.2. Monopoly cost and revenue relationships. In Figure 8.2, the profit maximizing output is _____________ units.
285
Consider the following pure competition application of a total revenue approach. A normal profit is found at a quantity of _______ units.
4
Price Quantity $10 1 9 2 8 3 7 4 6 5 When the price in the table above changes from $6 to $9, the quantity demanded will change from 5 to __________ units.
4 3 *2* 1
Assume that you expect a "normal profit" of $20,000 on $100,000 invested in your new business. Explicit costs are $60,000 and your total revenue is $120,000, then your economic profit is $ ______________ .
40,000
In Figure 8.3 above, the maximum profit output is at Quantity of ________ .
8.0
In Figure 4.1 individuals who prefer clothing would be worse off with a movement from D to _______ and this would, therefore, not be a move toward Pareto Optimality.
A
In Figure 6.3 above the minimum of the _______ and the AVC curves are at the intercept with the MC curve
ATC
Economies of scale reduce _____________.
All of the above
Adam Smith explained that the purpose of Government was to facilitate the market and, therefore, it should have a very ________ role in an efficient market system
Ceteris Paribus Semper Fidelis ***Laissez Faire*** Nonus Abovus
In the graph above, the point __________ represents values which are unattainable with current resource use and current technology.
E, far right outlier
The coefficient of price elasticity of demand ( or ______ ) is a quantitative measure of responsiveness (or sensitivity) to price change.
Ed
Pure competition is important to economists because it is __________________ .
all of the above
Which of the following economists closely analyzed how consumers behave and why ?
all the above
In the graph above, the point _______ represents values resulting in unemployment.
D, middle
_____________ of concepts is one important means of understanding Economics.
Digitizing Nono-engineering ***Visualization*** Mastication
In Figure 4.11 with an increase in demand from_________, public wellbeing can be increased by the granting of government subsidies.
Do to D1
_____________ are "social scientists"(concerned with human behavior and cultural values) who seek to optimize the allocation of scarce resources toward the maximum satisfaction possible for individuals, communities, and entire societies.
Entrepreneurs Capitalists Socialists *Economists*
The transition away from ___________________ systems began as the manor life yielded to the city life in the 17th and 18th centuries in Europe.
Fantasy and Utopian Market and Autocratic Command and Market ***Traditional and Autocratic***
According to the Neoclassical Theory of Economics in the early 1900's and evolving into ________________ Economics in the 1920's, the greater the satisfaction an individual adds to the economy, the greater the prosperity for this individual and society.
Keynesian Pareto *Welfare* Coase
As less additional output is added by each additional worker (MP), the ______ will increase.
MC
In Figure 8.3 below, the minimum of the ATC curve is where _________ = MC.
MC
All firms, including the one illustrated in the table above, will maximize profits (or minimize losses) where ___________ and set price on the demand curve at this quantity.
MR=MC
The equilibrium utility rule is expressed algebraically as:
MUa/Pa = MUb/Pb = MUc/Pc
In Figure 4.10 a reallocation takes place by decreasing the supply line from So to S1 in Graph 2 so that quantity decreases from ________________ .
Q to QO *QO to Q1* Q1 to 0 Q1 to 0
Which of the following names would be most closely associated with the idea that pleasure attained by individuals is difficult to measure since it is often subjective and social in nature ?
Thorstein Veblen
MC is a _____-shaped curve due to the Law of Diminishing Returns.
U
Any point inside the frontier (curve) describes an economy with___________ of one or more of the four basic resources.
Under-employment Unemployment ***a. or b.*** None of the above
Figure 7.5. Graphic approach to finding maximum profit. Using the letter labels on Graph 7.5 above, a firm with these costs and taking a market price of E would have a total economic profit box of ___________ .
ZERO
If seasonal conditions favor ___________ in the sale of an item, then the second schedule or graph line (D1) lies to the right of the first schedule (D).
a decrease *an increase* no change any of the above is correct
A Fallacy of Composition exists when we conclude that something that is good for ___________ is also good for the entire society.
a female a male *an individual* none of the above
______________ is often challenged as being an inefficient allocation of resources because it promotes monopoly power for some firms and these expenditures by multiple firms are often self-canceling rather than productive.
advertising
_________ production involves the human resource called Labor.
all
In a ____________ firm there is a separation between the demand line and the MR.
all of the above
An illustration of an increase in the supply schedule is shown below with a change from S1 to S2. Price Quantity Supply 1 Quantity Supply 2 $10 8 10 9 7 9 8 6 8 7 5 7 This shift could be caused by ___________________.
an increase in resource costs *an increase technology* an increase in price of the product an increase in taxes on the producers
is concerned with how we choose to use our scarce resources on ___________________.
an unlimited number of projects only Normative economic projects only Positive economic projects *a limited variety of different projects*
An efficient, modern economy assumes that there is an invisible hand through "maximum competition", when:
and allocations rationed by price through the mechanisms of supply and demand
By finding the total cost and dividing by the number of units produced ______________ are found.
average or per unit costs
_____________ are illegal in the United States.
cartels
Elasticity of supply measures the amount of change in quantity brought to the market by a ______________.
change in price
Demand elasticity analyzes the degree of sensitivity and the _________________ resulting from a change in price.
change in total revenue
The "marginal _________" of going to a particular concert is the additional benefit (satisfaction or pleasure) that is gained.
cost *utility* peanut butter road rage
Demerit goods which are externalities that involve spillover __________ will decrease the welfare of third parties.
costs
________________ most significant theory was Comparative Advantage, arguing that a nation will gain through trade by producing what is most efficient and exchanging with other nations.
david ricardo
In Figure 4.8 if MC is greater than MB as is the case in a price of $9 then, over production is present and a _____________ is incurred in social benefit.
deadweight loss
When goods are allocated without full costs to the consumer & producer, the maximum total surplus is not realized, resulting in inefficiency, a market failure and a _______________ .
deadweight loss
As an Oligopoly firm produces at a higher output, economies of scale allow the costs per unit (ATC) to _____________ significantly.
decline
An increase in demand (shift right) with supply remaining constant will yield a(n) ___________ in equilibrium price and an increase in equilibrium quantity.
decrease not change *increase* none of the above
If consumers expect prices to increase in the future, they would ________ their demand for an item now.
decrease not change *increase* none of the above
When the average cost curves (ATC or AVC) are ____________ , then the marginal cost curve is below them.
decreasing
The market clearing price where the _____________ by consumers equals the quantity supplied by producers.
demand *quantity demanded* either a. or b. all the above
Silicon and other basic elements used to make computer chips are ________ from the factor of production we call land.
derived
More expensive product __________________ in a retail store may cause us to ask if we want lower prices by accepting waiting lines, limited choices, and a more austere store.
differentiations
The total revenue approach determines elasticity or inelasticity by comparing the ___________ of a price change with the ___________ of the resulting change in total revenue.
direction
The substitution effect is the concept that if the price of X goes ________ , there will be an increase (shift right) to X away from substitute goods.
down
Over a reasonable period of time __________ must choose to balance its trade within the global markets in order to prosper.
each business every person each industry *a nation*
While in the short run a(n) ___________ profit is more likely in an unregulated monopoly, that will attract competition and technology may break down the existing barriers.
economic
_____________ are the total sacrifices that must be made to do something or acquire something.
economic costs
The elasticity of supply coefficient is determined mainly through the effects of time because a(n) ____________ market is assumed to exist for most goods and services.
efficient
A value of 1.5 to 2.5 for the elasticity coefficient (Ed) is considered very ________ .
elastic
All consumers and suppliers are __________ to large price changes, but for analysis economists assume a moderate amount of price change.
elastic
In the figure above, this product is price ___________ between Point B and Point C.
elastic
Prices are relatively more _________ at the upper end of a sloped demand line.
elastic
You would tend to be price ___________ in the purchase of a new home, but not price sensitive to the purchase of salt (a small percentage of the household budget).
elastic
The transition away from Traditional and Autocratic systems began as the manor life yielded to the city life in the 17th and 18th centuries in ____________.
europe
____________ costs are also called accounting costs and include payments to workers, suppliers of materials, and building or equipment costs.
explicit
A balance of responsibilities taken on by all people in each sector of the economy results in ________________ (equity) for all people.
fairness of results *fairness of opportunity* a full shot of adrenaline a full shot of oxytocin
"Time" relative to utility is not a consideration in consumer behavior.
false
Assume you own a widget manufacturing plant. In the short run you could build a larger plant or purchase an existing operation to combine with your own firm.
false
Barriers to entry always allow a monopoly to maintain economic profits even in the long run.
false
Figure 7.1 Competitive supply and demand relationships, industry and firm
false
In figure 6.4, Plant 2 has higher costs due to diseconomies of scale.
false
In the field of Marketing the concepts of marginal values and marginal utility per dollar are not used for brand comparisons because measuring "pleasure" is difficult.
false
Monopolistic competition is thought to be the ultimate of efficiency within microeconomics.
false
The price of eggs is much less today than 50 years ago. But consumers are inelastic to the price decrease, thereby spending more on eggs today than 50 years ago.
false
If government provides subsidies (grants to produce), suppliers will provide _________ goods at every price level (shift right).
fewer *more* the same amount of none of the above
Part of the Economic Problem is that resources are limited. That is, we have a(n) _________ amount of these available at any one time.
fixed
When some individuals gain from the public production of a good, but they do not incur any cost compared to their individual benefit received, the economic problem is called _____________ .
free rider
Production analysis is essential in order for a firm to make __________ among the various possible allocations of resources.
good choices
Supply is provided by ____________ and demand is created by consumers.
government households *producers* Federal Reserve
Supply is provided by ____________ and demand is created by consumers.
government households *producers* Federal Reserve
The higher the value of the elasticity coefficient (Ed) above 1.0, the ________ is the price sensitivity (elasticity).
greater
In Figure 4.9 a government price floor is creating a deadweight loss when minimum wage legislation results in marginal costs that are ____________ than marginal benefits and a __________ of demand for labor at that price.
greater...shortage
Workers formed unions and eventually these were recognized as a legal entity having the right of _________________ .
habeus corpus ***collective bargaining*** a fair trial multiple votes
When businesses raise prices and consumers are relatively insensitive to the price increase, total revenue will ___________.
increase
When people decide that one particular cell telephone is less acceptable than the others, the demand for this cell phone will ____________.
increase and shift to the left increase and shift to the right *decrease and shift to the left* decrease and shift to the right
An decrease in quantity supplied is a movement along a given supply line caused by a(n) __________ .
increase in technology decrease in resource prices increase in price of the product *decrease in price of the product*
Consider the information below for a purely competitive firm : If output is two units, then MR > MC > AVC and output should be _________ .
increased
In Figure 4.10 taxes imposed on cars that pollute, ______________ the prices for consumers through decreased supply and as a result, a decreased quantity of cars that pollute.
increases
If a pure competition firm is producing where MR>MC>AVC, the firm will increase profits or reduce losses by ______________ the level of production.
increasing
According to Pareto's theory, a (an) ______________ system exists when no change in allocation among participants can be made that would yield greater welfare to one individual without reducing another individual's welfare.
inefficient, optimal efficient, less than optimal inefficient, less than optimal *none of the above*
Businesses assume an _________ demand when they increase prices to raise total revenue.
inelastic
Consumers are generally _____________ to medical and gasoline prices within a moderate price range.
inelastic
In the graph above, the point D represents values resulting in ____________.
inflation efficiency ***unemployment*** growth
"Full cost" means that the payments to the following economic resources employed in the production of an item are specifically provided by the supplier:
land capital labor and entrepreneurship *all the above*
A small decrease in price will cause ______________ in the total revenue for firms selling products having a very elastic demand.
large increase
The short run (assumes a fixed capacity) average total cost (SRATC) curve is U-shaped because of the _____________________________ .
law of diminishing returns
A shift in a PPC/PPF to the______________ illustrates Growth which may be generated by better utilizing existing resources (improved Technology) or by acquiring more resources over time.
left (or inward) right( or outward) ***first (or low) gear*** none of the above
Barriers to entry that can create a monopoly include ______________ .
legal barriers
A__________ failure exists when a resource allocation continues to produce units at a surplus or shortage position.
legislative presidential judicial *market*
An expensive automobile purchased by a wealthy individual may be viewed as a necessity by that individual and, therefore, have a coefficient of elasticity _________ "1.00".
less than
In Figure 4.5 if MC is greater than MB, then additional costs are _______ additional benefits. An inefficiency exists and a ________ quantity should be produced.
less than ... higher more than ... higher less than ... lower *more than ... lower*
In the short run a firm in any of the market models where the ATC is above the price is incurring a short-term ______________.
loss
____________ cost is the additional cost of producing one more unit of output.
marginal
___________ as value is the reason consumers purchase an additional good in microeconomic theory.
marginal benefit
The relationship between the number of inputs and the additional output that is added is called ________________ .
marginal product
_______________ is the major criteria suppliers use to determine whether or not to produce an additional good in microeconomic theory.
marginal revenue *marginal cost* marginal benefit marginal propensity to consume
Consider the case of a melon farmer when his crop will mature within a week and the market demand is high. The farmer cannot change quantity supplied by planting more melons. The farmer can only ration existing supply by raising the price. This is an example of the ____________ .
market period
In the ____________ the Elasticity of Supply is perfectly inelastic (supply line is vertical) because no adjustments can be made immediately in the amount produced.
market period
Because of ____________ competition in the pure competition model, the lowest costs to consumers are realized with efficiency of resource use.
maximum
Ecological balance is the goal that assumes the global economy can achieve _____________ economic conditions while maintaining a sustainable, living, planet.
maximum only minimum *balanced* none of the above
Government ____________ laws exist so that creative people have incentive to be productive and can have sole supplier status on their unique product for a reasonable time period.
minimum wage rent control *patents and copyright* all the above
For the ________________ model within imperfect competition there is no likely collusion and little or no price interdependency.
monopolistic competition
Retail stores and make goods and services different by the design of marketing appeal including special features. This is characteristic of __________________ .
monopolistic competition
Because the ______________ firm produces the entire output of the industry, average revenue and marginal revenue are not equal.
monopoly
The Monopolistic Competition model has the same graphic representation with the same basic price and quantity maximum profit outputs as the ________________ .
monopoly
The Sherman Anti-Trust Act was passed in 1890 to restrain the _________ power which had been created in the U.S. economy.
monopoly
As a person continues to consume more of an item, at some point s/he will get ___________ additional satisfaction (utility).
more *less* none of the above all of the above
When the elasticity of supply coefficient is greater than 1, producers will increase the percentage of quantity supplied ___________ the percentage increase in price.
more than
In Figure 4.5 if MC is less than MB, then additional benefits are _______ additional costs. An inefficiency exists and a ________ quantity should be produced.
more than... higher
Total Costs (TC) = Average Total Cost (ATC) _______ Quantity (Q)
multiply by
There is/are ______ supply curve(s) possible when a downward sloping demand line exists because there is _______ price(s) where a monopoly firm will supply a given quantity.
no
The goal of "Growth" is to increase the ___________ (adjusted to not include inflation) value of GDP in an economy.
nominal fantasy *real* fifo
In an Oligopoly industry a change in price by one firm will _____ impact the other firms in the industry.
none of the above
Oligopoly firms will seldom change prices but if one firm increases their price, others may follow if costs have ____________ .
none of the above
The _________ run considers the intensity of use with a fixed plant size.
none of the above
A firm must make a(n) "_________ profit" to survive since the funds invested could have been used for alternative purposes and received a positive return.
normal
In the "dilemma of regulation" the fair-return price (P = ATC) yields a(n) _____________ profit to assist the continued operation of the monopoly firm, but falls short of allocative efficiency from society's perspective.
normal
"Demand" is a series of prices and the related quantities that consumers are willing and able to buy at a particular _____________.
north east corner of the street *moment in time* government outlet Federal Reserve meeting
Changes in technology such as computer automation that reduce production costs will __________ the supply line (shift right).
not change *increase* decrease none of the above
_______________ is a market condition with only a few sellers supplying all or most of the total output in the industry.
oligopoly
As a person continues to consume more of an item, ________ s/he will get less additional satisfaction (utility).
on the third unit on the fourth unit on the fifth unit *at some point*
Price Quanity Demanded Quantity Supplied $9.5 1 5 9 2 4 8.5 3 3 8 4 2 7.5 5 1 In the table above __________ would have been willing to pay $9.50, with the price in equilibrium at $8.50 they will have to pay only $8.50.
one person
________________ is the next best alternative that had to be sacrificed (given up) to pursue a certain undertaking.
opportunity cost
In Figure 4.4 each point on the market supply line is the amount of value relative to __________________________ that suppliers are willing to forgo of making other products.
opportunity costs
When two goods are substitutes, a change in the price of one will cause a change in the demand for the other in the ________ direction.
opposite *same* upward downward
A market disequilibrium or market failure is present when consumers _________ the true market price for a product and/or suppliers do not pay the ongoing full cost of production.
pay *do not pay* angrily refuse to pay very happily pay
__________ competition assumes perfect market information (everyone in the market knows the price of the good or service).
perfect
With ________________ demand the total revenue declines as the price drops because a lower price with a constant quantity results in lower total revenue.
perfect inelastic
Superior or normal goods have a ___________ coefficient of income elasticity relationship; therefore, the greater the income, the higher the quantity-demanded response.
positive
_____________ goods are exclusive and sold in a competitive market, meaning the goods are produced with rivalry and are only available to those who pay for the benefits of the goods. Example: ______________
private... a cheeseburger
A point slightly outside a specific PPC/PPF describes a combination of goods which is ______________ for the short run by working resources in an "overtime" mode.
produceable
When costs are fully allocated for a good and benefits/costs are fully paid, market equilibrium will result and maximum _________________ surplus.
producer consumer *total consumer and producer* none of the above
The __________________ is the relationship between the number of inputs (such as units of labor) that a firm uses and the resulting units of output (such as quantity of widgets produced).
production function
Elasticity of demand is unitary when there is a _____________ (but inverse)change in quantity demanded for a given price change.
proportional
Many _____________ expenditures such as ____________ are largely non-excludable.
public ... cheeseburgers private .... cheeseburgers *public ... national defense* private ... national defense
____________________ is a unique market structure providing output at the lowest cost over the long run.
pur competition
When a consumer purchases a product, a demand is created for this item to be __________ by the merchant.
re-peated re-fined *re-stocked* re-integrated
Assume you are going to lunch and have a choice of two meals. The first meal would give an increase in marginal utility of 100 with a $25 price. The second meal would give you an increase of only 10 with a $1 price. The third meal will give you an increase of 50 with a $10price. Which meal should you logically choose ?
second
The __________ run is a time period too brief to increase capacity, but sufficient to increase operations to the maximum of the existing capacity .
short
he ability of people to ____________ is determined by their skill, knowledge, and training.
sleep ***produce*** reproduce get along
Oligopoly has a ____________ number of producers.
small
Thomas Malthus' theory did not take into account the role of _______________ .
sunspots and global warming shifts from optimism to pessimism ***technology and systems changes*** adrenaline and endorphin changes
When price increases, the _____________ by consumers decreases if all other influences remain the same.
supply quantity supplied demand *quantity demanded*
Fixed costs (such as property taxes, insurance, depreciation, etc.) are costs that _____________________ .
that remain the same regardless of output
The economic and logical position of a firm in an oligopoly industry can be well understood through ___________.
the game theory
Monopolies charge a higher price than competitive firms (actually like imposing a private tax) and increase income for _________ of monopoly firms.
the owner's
A monopoly compare to pure competition has ____________ forces of increasing and diminishing returns to determine cost relationships.
the same
A shopper at a convenience store is ________ sensitive, but price insensitive.
time
____________ approaches brought stability to the social as well as the economic system, but did not allow for much progress or change.
traditional
For an individual the utility obtained per unit of consumption may vary based upon "need at the moment" such as with police or doctor services.
true
Given the following revenue data for a individual producer in a purely competitive industry - This addition of three more units sold will increase average revenue by the amount of the price of a single product.
true
Given the following revenue data for a individual producer in a purely competitive industry - Price (set by the market in pure competition) always remains the same.
true
In the Indifference Diagram above, Point J has higher satisfaction than position I but is not attainable with the given budget.
true
In the Monopolistic Competition model in the longer run there will be an adjustment to a new equilibrium where TR = TC and only normal profits exist.
true
Savings (non-consumption) can have a utility function.
true
Some individuals receive a high value of utility from not spending all of their income and therefore choose to save a reasonable amount of money.
true
The basic U-shape of the LRATC curve is consistent among industries, but the framework of when economies and diseconomies begin relative to output does change.
true
A major principle of microeconomics is that an increase in expenditure (including public expenditure) is justified as long as the marginal costs are greater than the marginal benefits of the additional production.
true *false*
Economists normally consider costs of operation in ______ time frame(s).
two
A ________ cost of choosing to attend a concert is not only the out-of-pocket $ $ $ cost, but also the "opportunity cost" (lost wages or maybe extra sleep). Every activity we undertake requires us to not pursue other opportunities.
un-real book keeping *real* fantasy
The Principles of Economics are the generally accepted theories about ___________.
uncertainty and probability risk management *resource allocation* return on investment
When prices are ____________, greater quantities will be provided by producers at all price levels all other things remaining the same.
unchanged lower *higher* changed
Apply the total revenue test to the information in the table above. A decrease in price from $6 to $5 reveal a(n) _____________ situation.
unitary elastic
________________ of demand occurs when the total revenue remains the same whether a price is increased or decreased.
unitary elasticity
Economic efficiency is gaining the most output to maximize consumer ______ with a given amount of input.
utility
Average Variable Cost (AVC) = Total ___________ Cost (TVC) / Quantity (Q)
variable
The utility functions of individuals __________ according to personal values and tastes.
vary widely
In the Product Markets of the Circular Flow model, Households provide Consumption Spending (or Revenues) to the Business sector in exchange for _____________ .
wages rent profit *goods and services*
The characteristics of monopolistic competition are ____________ represented within a capitalistic economy.
widely
_________________ developed the algebraic basis of marginal utility theory to find the maximized total utility (pleasure) with a given income.
william jevons
In Figure 6.1 above the TP curve is at a maximum at seven units of input because the MP equals __________ at this point.
zero
