X-inefficiency refers to the situation in which firms with market power are operating in the upward-sloping segment of their long-run average cost curve. Indicate whether the statement is true or false ANSWER FALSE
Date: September 10th, 2020
Referring to the previous question, all else constant, a 5 unit increase in the wage index would cause: A) quantity supplied to increase by 9 units and be shown by a movement up the supply curve. B) quantity supplied to decrease by 9 units and be shown by a movement down the supply curve. C) […]
Date: September 10th, 2020
Assume the demand function for a particular good can be written as P = 150 – 6Q. When P = 12, the point elasticity of demand equals 2.08. Indicate whether the statement is true or false ANSWER FALSE
Date: September 10th, 2020
The marginal propensity to consume is 0.75, marginal propensity to invest is 0.3, and the marginal propensity to import is 0.2. What is the size of the multiplier? A) 6.67 B) 5.67 C) 4.67 D) 1.67 ANSWER A
Date: September 10th, 2020
Evidence suggests that as the amount of market power possessed by the firms in an industry increases, the amount of X-inefficiency will decrease. Indicate whether the statement is true or false ANSWER FALSE
Date: September 10th, 2020
The marginal propensity to consume is 0.50, marginal propensity to invest is 0.20, and the marginal propensity to import is 0.05. What is the size of the multiplier? A) 1.00 B) 2.86 C) 3.00 D) 0.50 ANSWER B
Date: September 10th, 2020
In the case of a linear demand curve, average revenue is equal to price, while (with the exception of Q = 1 ) marginal revenue is less than price. Indicate whether the statement is true or false ANSWER TRUE
Date: September 10th, 2020
Over time, the price of personal computers has fallen dramatically. All else constant, this would lead us to expect that demand for personal computers has become more price elastic. Indicate whether the statement is true or false ANSWER FALSE
Date: September 10th, 2020
All else constant, an increase in the level of competition among firms would be expected to reduce the amount of X-inefficiency that exists in a particular industry. Indicate whether the statement is true or false ANSWER TRUE
Date: September 10th, 2020
Which of the following would cause a change in supply, as opposed to a change in quantity supplied, in the market for used homes? A) A decrease in the price of rental housing. B) A decrease in the mortgage rates. C) An increase in the incomes of home buyers. D) An increase in the number […]
Date: September 10th, 2020
