According to the text, the price elasticity of demand for oranges has been estimated to be -0.62. This implies that a doubling of the price of oranges would cause the quantity demanded of oranges to: A) increase by 6.2 percent. B) decrease by 6.2 percent. C) increase by 62 percent. D) decrease by 62 percent. […]
Date: September 10th, 2020
The market structure that is characterized by a small number of large firms that have some market power is called: A) perfect competition. B) monopolistic competition. C) oligopoly. D) monopoly. ANSWER C
Date: September 10th, 2020
According to the text, the price elasticity of demand for bath tissue has been estimated to be -2.42. This implies that a 10 percent decrease in the price of bath tissue would cause the quantity demanded of bath tissue to: A) increase by 2.4 percent. B) decrease by 2.4 percent. C) increase by 24.2 percent. […]
Date: September 10th, 2020
Which of the following market structures is most similar to perfect competition? A) Monopsony. B) Monopolistic competition. C) Oligopoly. D) Monopoly. ANSWER B
Date: September 10th, 2020
A strong Japanese yen: A) induced Japanese auto manufacturers to increase their production of cars in Japan. B) induced Japanese auto manufacturers to shift their production of cars to the U.S. C) made Japanese exports more price competitive globally. D) had no meaningful impact on Japanese auto manufacturers. ANSWER B
Date: September 10th, 2020
The key characteristic of an oligopolistic market is: A) production of a homogeneous product. B) mutual interdependence among firms in the market. C) the absence of market power by any one firm. D) ease of entry into, and exit out of, the market. ANSWER B
Date: September 10th, 2020
Which of the following would be considered an example of a macroeconomic problem? A) Should Microsoft reduce the price of its Windows operating system? B) Should the federal government extend the eligibility period for unemployment benefits? C) Should Mitsubishi eliminate one of its production shifts? D) Should JP Morgan Chase increase the interest rate it […]
Date: September 10th, 2020
Information on the price elasticity of demand is particularly important to managerial decision making because: A) the higher the price elasticity of demand for a product is, the more profitable it will be to produce more of it. B) depending on the elasticity coefficient, decision makers will immediately know if a price change will cause […]
Date: September 10th, 2020
Which of the following would be an illustration of a microeconomic issue affecting U.S. auto manufacturers? A) An introduction of new, more fuel efficient models by Japanese competitors. B) A recession in Europe that causes U.S. auto exports to Europe to decline. C) A decline in the demand for new cars in the U.S. due […]
Date: September 10th, 2020
Which of the following statements about monopoly is false? A) A single firm serves the market. B) There are no close substitutes for the monopolist’s output. C) There are usually significant barriers to entry. D) Because there is a single firm serving the entire market, the monopolist can charge whatever price it wants to for […]
Date: September 10th, 2020
