Question 1

Externalities exist when:

Accepted Answer

A) private costs equal social costs. 
B) private costs and benefits equal social costs and benefits. 
C) private benefits equal social benefits. 
D) private benefits exceed social benefits. 
A) private costs equal social costs. 
B) private costs and benefits equal social costs and benefits. 
C) private benefits equal social benefits. 
D) private benefits exceed social benefits. D

Question 2

Regulatory costs are partially borne by workers when:

Accepted Answer

A) demand is perfectly inelastic. 
B) supply is perfectly elastic. 
C) supply is perfectly inelastic. 
D) none of these. 
A) demand is perfectly inelastic. 
B) supply is perfectly elastic. 
C) supply is perfectly inelastic. 
D) none of these. B

Question 3

The incidence of a percentage sales tax will fall primarily on business when:

Accepted Answer

A) the tax is collected from businesses. 
B) demand is highly elastic with respect to price. 
C) demand is highly inelastic with respect to price. 
D) the elasticity of demand equals 1. 
A) the tax is collected from businesses. 
B) demand is highly elastic with respect to price. 
C) demand is highly inelastic with respect to price. 
D) the elasticity of demand equals 1. A

Question 4

Holding all else equal, the return on stockholders' equity will rise with a decline in:

Accepted Answer

A) the book value of stockholders' equity. 
B) economic profits. 
C) accounting net income. 
D) prices. 
A) the book value of stockholders' equity. 
B) economic profits. 
C) accounting net income. 
D) prices.

Question 5

When demand is perfectly elastic, regulatory costs are never borne by:

Accepted Answer

A) consumers. 
B) management. 
C) stockholders. 
D) government. 
A) consumers. 
B) management. 
C) stockholders. 
D) government.

Question 6

The perfectly competitive demand curve for a commodity product is:

Accepted Answer

A) upward sloping. 
B) downward sloping. 
C) horizontal. 
D) vertical. 
A) upward sloping. 
B) downward sloping. 
C) horizontal. 
D) vertical.

Question 7

Tradable emission permits:

Accepted Answer

A) are often worthless. 
B) are granted by the government and allow an increase in pollution. 
C) can harm environmentally sensitive firms and consumers, at least on a relative basis. 
D) force polluters to spend millions of euros on new equipment to meet pollution abatement regulations. 
A) are often worthless. 
B) are granted by the government and allow an increase in pollution. 
C) can harm environmentally sensitive firms and consumers, at least on a relative basis. 
D) force polluters to spend millions of euros on new equipment to meet pollution abatement regulations.

Question 8

The burden of a percentage sales tax will fall primarily on business when:

Accepted Answer

A) the tax is collected from businesses. 
B) demand is highly elastic with respect to price. 
C) demand is highly inelastic with respect to price. 
D) the elasticity of demand equals 1. 
A) the tax is collected from businesses. 
B) demand is highly elastic with respect to price. 
C) demand is highly inelastic with respect to price. 
D) the elasticity of demand equals 1.

Question 9

Regulation of business has the potential to yield economic benefits to society by:

Accepted Answer

A) increasing positive and negative externalities. 
B) increasing the availability of substitutes. 
C) restricting entry. 
D) mandating economies of scale. 
A) increasing positive and negative externalities. 
B) increasing the availability of substitutes. 
C) restricting entry. 
D) mandating economies of scale.

Question 10

A per unit tax will typically cause output prices to increase most when:

Accepted Answer

A) average cost is falling. 
B) average cost is constant. 
C) average cost is rising. 
D) none of these. 
A) average cost is falling. 
B) average cost is constant. 
C) average cost is rising. 
D) none of these.

Externalities exist when:

Regulatory costs are partially borne by workers when:

The incidence of a percentage sales tax will fall primarily on business when:

Holding all else equal, the return on stockholders' equity will rise with a decline in:

When demand is perfectly elastic, regulatory costs are never borne by:

The perfectly competitive demand curve for a commodity product is:

Tradable emission permits:

The burden of a percentage sales tax will fall primarily on business when:

Regulation of business has the potential to yield economic benefits to society by:

A per unit tax will typically cause output prices to increase most when:

Nature and Scope of Managerial Economics

Economic Optimization

Demand and Supply

Demand Analysis

Demand Estimation

Forecasting

Production Analysis and Compensation Policy

Cost Analysis and Estimation

Linear Programming

Competitive Markets

Monopoly and Monopsony

Monopolistic Competition and Oligopoly

Game Theory and Competitive Strategy

Pricing Practices

Risk Analysis

Capital Budgeting

Organization Structure and Corporate Governance

Government in the Market Economy

Filters

Exam 11: Performance and Strategy in Competitive Markets

Externalities exist when:

Regulatory costs are partially borne by workers when:

The incidence of a percentage sales tax will fall primarily on business when:

Holding all else equal, the return on stockholders' equity will rise with a decline in:

When demand is perfectly elastic, regulatory costs are never borne by:

The perfectly competitive demand curve for a commodity product is:

Tradable emission permits:

The burden of a percentage sales tax will fall primarily on business when:

Regulation of business has the potential to yield economic benefits to society by:

A per unit tax will typically cause output prices to increase most when:

Nature and Scope of Managerial Economics

Economic Optimization

Demand and Supply

Demand Analysis

Demand Estimation

Forecasting

Production Analysis and Compensation Policy

Cost Analysis and Estimation

Linear Programming

Competitive Markets

Monopoly and Monopsony

Monopolistic Competition and Oligopoly

Game Theory and Competitive Strategy

Pricing Practices

Risk Analysis

Capital Budgeting

Organization Structure and Corporate Governance

Government in the Market Economy

Filters