Although Coca-Cola and PepsiCo are major players in the soft drink industry, the large number of other competing firms means that the industry is most accurately characterized as monopolistically competitive. Indicate whether the statement is true or false ANSWER FALSE
Date: September 10th, 2020
In order to ensure consistency across goods and services, elasticities should always be calculated based on absolute changes in quantity demanded. Indicate whether the statement is true or false ANSWER FALSE
Date: September 10th, 2020
“Demand” is best defined as the relationship between: A) the price of a good and the quantity consumers are willing and able to buy at each price level. B) the current price of a good and the quantity demanded at that price. C) the quantity supplied and the price people are willing to pay for […]
Date: September 10th, 2020
The extent to which investment spending changes with changes to income is called the: A) marginal propensity to consume. B) marginal propensity to save. C) marginal propensity to import. D) marginal propensity to invest. ANSWER D
Date: September 10th, 2020
Isoquants are convex to the origin due to: A) the law of diminishing marginal utility. B) the assumption of the diminishing marginal productivity of each input. C) the fact that as less capital is used, its marginal productivity falls. D) the fact that as more labor is used, its marginal productivity rises. ANSWER B
Date: September 10th, 2020
The marginal rate of technical substitution (MRTS) along an isoquant: A) is equal to the price ratio at all points along an isoquant. B) is equal to the ratio of the marginal utilities of the two goods. C) is equal to the ratio of the marginal products of the two inputs. D) remains constant as […]
Date: September 10th, 2020
The intercept term of the linear investment function measures: A) induced investment expenditures. B) autonomous investment expenditures. C) income. D) none of the above. ANSWER B
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
