Question 1

The market structure of the computer industry

Accepted Answer

A)  Was originally a monopoly. 
B)  Was originally perfectly competitive. 
C)  Has become more competitive over time. 
D)  Has become less competitive over time. 
A)  Was originally a monopoly. 
B)  Was originally perfectly competitive. 
C)  Has become more competitive over time. 
D)  Has become less competitive over time.

Question 2

Which of the following is a determinant of market supply but not the supply curve of an individual firm?

Accepted Answer

A)  The price of factor inputs. 
B)  Expectations. 
C)  The number of firms in the market. 
D)  Technology. 
A)  The price of factor inputs. 
B)  Expectations. 
C)  The number of firms in the market. 
D)  Technology.

Question 3

If the price of ricotta cheese, an ingredient in lasagna, increases, then

Accepted Answer

A)  The market supply curve for lasagna will shift to the right. 
B)  The market supply curve for lasagna will shift to the left. 
C)  There will be a movement up along the market supply curve for lasagna. 
D)  There will be a movement down along the market supply curve for lasagna. 
A)  The market supply curve for lasagna will shift to the right. 
B)  The market supply curve for lasagna will shift to the left. 
C)  There will be a movement up along the market supply curve for lasagna. 
D)  There will be a movement down along the market supply curve for lasagna.

Question 4

One World View article titled "Economy Threatens Catfish Industry" describes the increased competition in the catfish market. Which of the following is not true for a perfectly competitive industry in the long run?

Accepted Answer

A)  When economic profits exist in an industry, more producers try to enter. 
B)  As firms enter, prices and economic profits decline. 
C)  Individual firms possess significant market power. 
D)  When losses are incurred, firms begin to exit the industry. 
A)  When economic profits exist in an industry, more producers try to enter. 
B)  As firms enter, prices and economic profits decline. 
C)  Individual firms possess significant market power. 
D)  When losses are incurred, firms begin to exit the industry.

Question 5

In Figure 23.3, diagram "a" presents the cost curves that are relevant to a firm's production decision, and diagram "b" shows the market demand and supply curves for the market. Use both diagrams to answer the following question: In Figure 23.3, the price at which a firm makes zero economic profits is

Accepted Answer

A)  p1. 
B)  p2. 
C)  p3. 
D)  p4. 
A)  p1. 
B)  p2. 
C)  p3. 
D)  p4.

Question 6

In which of the following cases would entry and exit cease?

Accepted Answer

A) P > short-run ATC. B) P = long-run ATC. C) P > long-run ATC. D) P < long-run ATC. A) P > short-run ATC. B) P = long-run ATC. C) P > long-run ATC. D) P < long-run ATC.

Question 7

If a firm finds that its marginal cost is greater than its price, it

Accepted Answer

A)  Should reduce production. 
B)  Is maximizing its profit. 
C)  Should increase production. 
D)  Is maximizing its total revenue. 
A)  Should reduce production. 
B)  Is maximizing its profit. 
C)  Should increase production. 
D)  Is maximizing its total revenue.

Question 8

Refer to Figure 23.4 for a perfectly competitive market and firm. Which of the following is likely to occur in the market in the long run, ceteris paribus?

Accepted Answer

A)  An increase in demand. 
B)  A decrease in demand. 
C)  An increase in supply. 
D)  A decrease in supply. 
A)  An increase in demand. 
B)  A decrease in demand. 
C)  An increase in supply. 
D)  A decrease in supply.

Question 9

Which of the following is characteristic of a perfectly competitive market?

Accepted Answer

A)  A small number of firms. 
B)  Exit of small firms when profits are high for large firms. 
C)  Zero economic profit in the long run. 
D)  Marginal revenue lower than price for each firm. 
A)  A small number of firms. 
B)  Exit of small firms when profits are high for large firms. 
C)  Zero economic profit in the long run. 
D)  Marginal revenue lower than price for each firm.

The market structure of the computer industry

Which of the following is a determinant of market supply but not the supply curve of an individual firm?

If the price of ricotta cheese, an ingredient in lasagna, increases, then

One World View article titled "Economy Threatens Catfish Industry" describes the increased competition in the catfish market. Which of the following is not true for a perfectly competitive industry in the long run?

In which of the following cases would entry and exit cease?

If a firm finds that its marginal cost is greater than its price, it

Refer to Figure 23.4 for a perfectly competitive market and firm. Which of the following is likely to occur in the market in the long run, ceteris paribus?

Which of the following is characteristic of a perfectly competitive market?

Economics: the Core Issues

The Us Economy: a Global View

Supply and Demand

The Role of Government

National Income Accounting

Unemployment

Inflation

The Business Cycle

Self-Adjustment or Instability

Fiscal Policy

Deficits and Debt

Money and Banks

The Federal Reserve System

Monetary Policy

Supply-Side Policy: Short-Run Options

Growth and Productivity: Long-Run Possibilities

Theory Versus Reality

International Trade

International Finance

Global Poverty Glossary Index Reference Tables

International Economics

International Economics

Filters

Exam 9: Aggregate Demand

The market structure of the computer industry

Which of the following is a determinant of market supply but not the supply curve of an individual firm?

If the price of ricotta cheese, an ingredient in lasagna, increases, then

One World View article titled "Economy Threatens Catfish Industry" describes the increased competition in the catfish market. Which of the following is not true for a perfectly competitive industry in the long run?

In which of the following cases would entry and exit cease?

If a firm finds that its marginal cost is greater than its price, it

Refer to Figure 23.4 for a perfectly competitive market and firm. Which of the following is likely to occur in the market in the long run, ceteris paribus?

Which of the following is characteristic of a perfectly competitive market?

Economics: the Core Issues

The Us Economy: a Global View

Supply and Demand

The Role of Government

National Income Accounting

Unemployment

Inflation

The Business Cycle

Self-Adjustment or Instability

Fiscal Policy

Deficits and Debt

Money and Banks

The Federal Reserve System

Monetary Policy

Supply-Side Policy: Short-Run Options

Growth and Productivity: Long-Run Possibilities

Theory Versus Reality

International Trade

International Finance

Global Poverty Glossary Index Reference Tables

International Economics

International Economics

Filters