Price leadership: A) has rarely occurred in U.S. history. B) is always illegal in the United States. C) is usually the result of a dominant firm in the industry. D) usually results in the smaller firms in the industry incurring economic losses. ANSWER C
Date: September 10th, 2020
Consider an indifference curve drawn for movies and pizzas. Which of the following statements about this indifference curve is false? A) As an individual consumes more pizzas, the amount of movies the consumer is willing to give up for an additional pizza increases. B) If the individual consumes more pizzas, the amount of movies consumed […]
Date: September 10th, 2020
An index, based on a telephone survey of 500 households conducted by the University of Michigan, that measures households’ attitudes regarding expected business conditions, personal financial conditions, an consumer confidence about purchasing furniture and major household appliances is called the: A) Consumer Sentiment Index. B) Consumer Confidence Index. C) Consumer Satisfaction Index. D) Consumer Consumption […]
Date: September 10th, 2020
The technique that estimates long-run costs and the minimum efficient scale by determining the scale of operation at which most firms in an industry are concentrated is called the: A) engineering estimation technique. B) statistical cost estimation technique. C) survivor approach. D) back-of-the-envelope approach. ANSWER C
Date: September 10th, 2020
Which of the following is not a basic assumption underlying the theory of consumer behavior? A) Consumers prefer more to less. B) Consumer preferences depend on the amounts of goods they consume as well as the amounts being consumed by other consumers. C) Goods are continuously divisible, that is, consumers can always purchase one more […]
Date: September 10th, 2020
Monetary policy consists of changes in taxes, which in turn affects the amount of money households can spend on consumption. Indicate whether the statement is true or false ANSWER FALSE
Date: September 10th, 2020
Assuming that C = $6,200, I = $1,300, G = $1,100, Exports = $630, Imports = $750, and Depreciation = $600 (all in billions of dollars), GDP equals $7,880. Indicate whether the statement is true or false ANSWER FALSE
Date: September 10th, 2020
Assume the LRAC curve for a particular industry hits its minimum point at a relatively low level of output and then increases, and the demand for industry output is quite large. In this case, consideration of the minimum efficient scale of operation suggest that the market should be served by: A) a large number of […]
Date: September 10th, 2020
Which of the following pairs of goods would be expected to have a positive cross-price elasticity of demand? A) coffee and tea. B) gasoline and large SUVs. C) tennis racquets and tennis balls. D) hot dogs and hot dog buns. ANSWER A
Date: September 10th, 2020
Comparing the situation of a nominal interest rate of 10 percent and an inflation rate of 9 percent with a nominal interest rate of 6 percent and inflation rate of 2 percent, consumers would borrow more in which situation? A) Nominal interest rate of 10 percent since real interest rate is 1 percent. B) Nominal […]
Date: September 10th, 2020
