Micro Econ
the cross elasticity of glass & plastic is 1.25. if the price of glass increased by 12%, what was the percent change in the quantity demand of plastic
15%
which of the following is not a characteristic of a monopolistically competitive market?
firms must take the market price as given
unemployment is caused by
a surplus of labor
mara gets a free flu shot from her campus clinic. as a result, mara and her roommates avoid the flu all season. which of the following is true?
all of the above are true
total surplus is
consumer surplus + producer surplus
marginal cost is the
cost of producing one more good
of the following scenarios, which would cause a movement along a demand curve
ford increases the price of the explore
under monopolistic competition, entry typically causes price to __ & profits to __
decrease; decrease
___ is the goods & services people want & can afford
demand
for a monopolistically competitive firm, the firm's demand curve is
downward sloping
which of the following characteristics does not describe an oligopoly
economic profits are zero in the long run
paying $5 on amazon to stream a movie is an example of a service that is:
excludable and non-rival in consumption
an increase in the labor supply causes equilibrium wages to __ and employment to __
fall;rise
if the price of stamps increases 20% & the quantity demanded decreases by 10%, what type of demand are stamps
inelastic
compared with a competitive market, a cartel as a whole will produce:
less output in order to increase prices
if an unregulated industry generates pollution, the market price is __ than the socially optimal price, & the market quantity is ___ than the socially optimal quantity
less; greater
if there are many firms in an industry producing goods that are similar but slightly different, this is an example of:
monopolistic competition
when all the players within a game maximize their expected outcome given the information they have, this is called a:
nash equilibrium
passing gas in crowded classroom would certainly cause a ___
negative externality
why does the demand curve slope downward
people prefer paying less to paying more
gail wishes to sell onions she grew in her garden at the farmer's market. what type of market would she be competing in?
perfect competition
building a pedestrian tunnel under w. university drive for seniors entering and exiting the Lifelong Learning building would create a ___ for all drivers who would no longer need to wait at the very long light each time the crosswalk button is pushed
positive externality
If consumers believe that an extremely hot summer is approaching and more purchase fans, what will happen to the fan market?
price and quantity increase
in order to make automakers more competitive, the government decides to stop taxing automakers. what changes take place to the equilibrium price & quantity of vehicles
price decreases, quantity increases
which of the following is not a characteristic of a monopoly?
price taker
the lowest wage rate at which you would be willing to work is your:
reservation wage
what type of government policy is used when a positive externality is present
subsidies
with the flu season approaching, the gov't wants tissue produce more tissues, & decreases the taxes on the producers. what will happen to the tissue market?
supply will increase, causing price to decrease & quantity to increase
when an individual labor supply curves bends backward:
the income effect is stronger than the substitution effect
what is similar between a monopolist & a producer in a perfectly competitive market in regards to their production strategy
the quantity they produce is where MR = MC
as his wage increases, peter parker decides he will work more hours. this is an example of:
the substitution effect
a strategy in which a firm takes the same action that the other firm did in the last period is a:
tit-for-tat strategy
which of the following is considered leisure in terms of labor economics
you put hurricane shutters on your neighbor's house for nothing in return