The demand and supply functions for sweatshirts (the basic grey kind) are as follows: Demand Supply Quantity Quantity Demanded Supplied Price (per period) Price (per period) $10 15,000 $10 22,000 9 15,500 9 19,000 8 16,000 8 16,000 7 16,500 7 13,000 6 17,000 6 10,000 5 17,500 5 7,000 4 18,000 4 4,000 3 […]
Date: September 10th, 2020
Assume that as the firms in a perfectly competitive industry expand output, the prices of productive inputs increase. All else constant, this would cause the individual firms’ marginal cost curves to ________ and the market supply curve to become ________. A) shift down; flatter B) shift down; steeper C) shift up; flatter D) shift up; […]
Date: September 10th, 2020
Dennis notices that jackets are on sale for $99. In this case money is functioning as a A) medium of exchange. B) unit of account. C) store of value. D) payments-system ruler. ANSWER B
Date: September 10th, 2020
Because it is based on differences in the price elasticity of demand among different groups of consumers, third-degree price discrimination is a more profitable price discrimination strategy than is first-degree price discrimination. Indicate whether the statement is true or false ANSWER FALSE
Date: September 10th, 2020
When financial intermediaries deleverage, firms cannot fund investment opportunities resulting in A) a contraction of economic activity. B) an economic boom. C) an increased opportunity for growth. D) a call for government regulation. ANSWER A
Date: September 10th, 2020
In many areas of the country, electricity customers pay a set per unit price for each of the first X kilowatts and a lower per unit price for any additional kilowatts of electricity consumed in a month. This is an illustration of second-degree price discrimination. Indicate whether the statement is true or false ANSWER […]
Date: September 10th, 2020
As a store of value, money A) does not earn interest. B) cannot be a durable asset. C) must be currency. D) is a way of saving for future purchases. ANSWER D
Date: September 10th, 2020
If there are five goods in a barter economy, one needs to know ten prices in order to exchange one good for another. If, however, there are ten goods in a barter economy, then one needs to know ________ prices in order to exchange one good for another. A) 20 B) 25 C) 30 D) […]
Date: September 10th, 2020
Because it is a unit of account, money A) increases transaction costs. B) reduces the number of prices that need to be calculated. C) does not earn interest. D) discourages specialization. ANSWER B
Date: September 10th, 2020
A perfectly competitive firm will maximize profits (or minimize losses) so long as price (marginal revenue) is: A) greater than marginal cost. B) greater than average fixed cost. C) greater than average total cost. D) greater than average variable cost. ANSWER D
Date: September 10th, 2020
