DSL and broadband internet service would be considered an example of: A) substitute goods. B) giffen goods. C) inferior goods. D) complementary goods. ANSWER A
Date: September 10th, 2020
For the simple case of a production function with two inputs in which the inputs are perfect complements, each isoquant is represented by: A) a vertical line. B) a horizontal line C) a downward sloping straight line. D) a line that forms a right angle. ANSWER D
Date: September 10th, 2020
One could argue that price competition among oligopolistic firms is highly likely to cause the revenues of individual firms to decline, while competition on the basis of product differentiation could cause demand, and total revenues, of individual firms to increase. Indicate whether the statement is true or false ANSWER TRUE
Date: September 10th, 2020
Many people consider hot dogs to be an inferior good. For such people, all else held constant, a decrease in income would cause their demand for hot dogs to: A) increase. B) stay the same. C) decrease. D) cannot be determined with the information given. ANSWER A
Date: September 10th, 2020
An isocost line represents: A) all the combinations of inputs to a production process that result in the same total costs of production. B) all the combinations of inputs that result in the same amount of output. C) all of the combinations of two inputs for which the amount of money spent on each of […]
Date: September 10th, 2020
The difference between export spending on domestically produced goods and services by individuals in other countries and import spending on foreign produced goods and services by domestic residents is called: A) net export expenditure. B) personal consumption expenditure. C) government expenditure. D) investment expenditure. ANSWER A
Date: September 10th, 2020
Observations of consumer behavior suggest that when the price of gasoline rose above $3.50 per gallon, consumer demand for gas became considerably more price elastic. Indicate whether the statement is true or false ANSWER TRUE
Date: September 10th, 2020
The price elasticity of demand is measured as the percentage change in quantity demanded divided by the percentage change in price. Indicate whether the statement is true or false ANSWER TRUE
Date: September 10th, 2020
Which of the following statements about production isoquants is correct? A) They show all the combinations of two inputs that result in the same level of output. B) They are usually concave to the origin. C) They show all the combinations of two inputs that yield the same cost of production. D) They represent lower […]
Date: September 10th, 2020
From the airlines’ perspective, amenities competition is preferable to price competition because revenues are not adversely affected and it is easier to determine the strategies of one’s competitors. Indicate whether the statement is true or false ANSWER TRUE
Date: September 10th, 2020
