If the percentage change in quantity demanded is less than the percentage change in price, we would say that over this range, demand is: A) elastic. B) unit elastic. C) inelastic. D) perfectly elastic. ANSWER C
Date: September 10th, 2020
A decrease in price will result in an increase in total revenue if: A) the percentage change in quantity demanded is less than the percentage change in price. B) the percentage change in quantity demanded is greater than the percentage change in price. C) demand is inelastic. D) the consumer is operating along a linear […]
Date: September 10th, 2020
If the percentage change in quantity demanded is greater than the percentage change in price, we would say that over this range, demand is: A) elastic. B) unit elastic. C) inelastic. D) perfectly inelastic. ANSWER A
Date: September 10th, 2020
The soft drink industry can best be described as: A) an oligopoly. B) a monopoly. C) perfectly competitive. D) monopolistically competitive. ANSWER A
Date: September 10th, 2020
Which of the following statements about the circular flow model is false? A) Consumers earn income by selling resources they own to businesses. B) Businesses supply goods and services to the household sector. C) Households supply resources to the business sector. D) Business firms buy goods and services from the household sector. ANSWER D
Date: September 10th, 2020
The key distinguishing characteristic of an oligopoly is the: A) presence of long-run economic profits. B) fact that in all cases firms produce a standardized product. C) mutual interdependence of the firms in the market. D) near total absence of advertising. ANSWER C
Date: September 10th, 2020
Which of the following is not a characteristic of an oligopolistic industry? A) Substantial barriers to entry. B) The output produced by the firms in the industry may be homogeneous or differentiated. C) A small number of large firms. D) One dominant firm and low entry barriers. ANSWER D
Date: September 10th, 2020
Which of the following statements is false? In the circular flow model: A) the funds needed to finance investment spending come from the saving of households. B) GDP can be measured either by the income received or by the expenditures made. C) factor payments are made to business firms. D) consumption expenditures are made by […]
Date: September 10th, 2020
If electricity demand is inelastic, and electric rates increase, which of the following is likely to occur? A) Quantity demanded will fall by a relatively large amount. B) Quantity demanded will fall by a relatively small amount. C) Quantity demanded will rise in the short run, but fall in the long run. D) Quantity demanded […]
Date: September 10th, 2020
An industry characterized by a small number of dominant firms that face downward-sloping demand curves is best described as: A) a monopoly. B) monopolistically competitive. C) an oligopoly. D) perfectly competitive. ANSWER C
Date: September 10th, 2020
