If the price of salmon increases relative to the price of cod, the demand for: A) cod will decrease. B) cod will increase. C) salmon will decrease. D) salmon will increase. ANSWER B
Date: September 10th, 2020
The slope of the isocost line: A) changes as the combination of labor and capital is altered by the firm. B) is equal to the ratio of the marginal productivities at all points along the isocost line. C) is equal to the negative of the ratio of the prices of the outputs. D) is equal […]
Date: September 10th, 2020
Higher expected profits and business confidence ________ investment spending. A) decrease B) increase C) do not affect D) none of the above. ANSWER B
Date: September 10th, 2020
Appreciation of the U.S. dollar will ________ exports and ________ imports, other things equal. A) increase; increase B) increase; decrease C) decrease; decrease D) decrease; increase ANSWER D
Date: September 10th, 2020
A movement down along a given isoquant causes the marginal rate of technical substitution to: A) increase. B) stay the same. C) decrease. D) cannot be determined without additional information. ANSWER C
Date: September 10th, 2020
One of the surprising conclusions of many of the noncooperative models of oligopoly is that firms end up better off with the noncooperative outcome than they would by cooperating with one another. Indicate whether the statement is true or false ANSWER FALSE
Date: September 10th, 2020
Mutual interdependence among firms is one of the key characteristics of an oligopoly market that distinguishes it from the other three major market structures. Indicate whether the statement is true or false ANSWER TRUE
Date: September 10th, 2020
Why are isoquants negatively sloped? A) Along a single isoquant, the firm can substitute the use of one input for another while holding the total level of output constant. B) Due to the effects of diseconomies of scale. C) Because the farther the isoquant is from the origin, the higher the level of output. D) […]
Date: September 10th, 2020
A demand elasticity coefficient is a measure of the sensitivity of quantity demanded to a change in one of the determinants of demand. Indicate whether the statement is true or false ANSWER TRUE
Date: September 10th, 2020
All else constant, as more firms substitute alternative materials, e.g., plastic, for copper, the market price of copper would be expected to: A) increase. B) stay the same. C) decrease. D) cannot be determined with the information given. ANSWER C
Date: September 10th, 2020
