Use LEFT and RIGHT arrow keys to navigate between flashcards;
Use UP and DOWN arrow keys to flip the card;
H to show hint;
A reads text to speech;
40 Cards in this Set
- Front
- Back
the fundamental problem of economics is?
|
the scarcity of resources relative to human wants
|
|
the four factors of production are?
|
Land labor capital and entrepreneurship
|
|
opportunity costs may b defined as
|
the good and services that are forgone in order to obtain something else.
|
|
a production possibility curve indicates ?
|
the maximum combinations of good and services given its available resources and technology
|
|
which determinant of demand changes in the personal computer market as more consumers are laid off from their work and cannot use the internet
|
income
|
|
the amount of satisfaction from consumption of an additional unit of a good or service is
|
marginal utility
|
|
price elasticity of demand is deined as
|
percentage change in quantity demanded divided by the percentage change in price
|
|
production function
|
is a technological relationship between factors of production and output.
|
|
profit
|
the diffrence between total revenue and total cost
|
|
the market value of all resources used in producing a good or service is expressed by
|
total cost
|
|
in short run, when a firm produces zero output total costs equals
|
fixed cost
|
|
which of the following would most liekly be a fixed cost.
|
property insurance because it doesnt change in production process and is constant
|
|
which of the following is equivalent to ATC
fc+mc fc+VC (FC+VC)/Q |
(FC+VC)/Q
|
|
equation for profit is
|
(P X Q) - TC
|
|
if a firm can change market prices by altering its output then it has
|
market power
|
|
a competitive firm is one
|
whose output is so small relative to the market supply that is has no effect on market price
|
|
the demand curve confronting a competitive firm
|
equals the marginal revenue curve
|
|
profit per unit equals
|
(TR-TC)/Q
|
|
if economic profit are earned in a competitive market then over time
|
additional firms will enter the market
|
|
which of the following is a barrier to entry
patents control of distribution outlets well-established brand loyalty all the above |
patents
control of distribution outlets well-established brand loyalt |
|
in a competitive market
|
neither buyer nor seller have market power
|
|
which of the follwoing is true for a monopolist
1faces a downward slope 2it must lower its price on all of its units to sell additional units 3, its marginal revenue is below its demand curve. all the above |
all the above
|
|
the demand curve faced by an individual monopolist
|
is the same as the market demand curve
|
|
price discrimination allows a producer to
obtain greater total revenue, obtain higher profits, charge both higher and lower price- all the above |
obtain greater total revenue, obtain higher profits, charge both higher and lower price- all the above
|
|
which of the following may characterize an oligopoly
a few firms, high barriers to entry, significant market power, all the above |
a few firms, high barriers to entry, significant market power, all the above
|
|
if an oligopolist is going to change its price or output, its initial concern
|
- the repose of its competitors
|
|
oligopolists will maximize total profits for all of the firms in the market at the rate of output where
|
MR=MC for the market
|
|
if a monopolistically competitive firm raises its price it will
|
if a monopolistically competitive firm raises its price it will
|
|
which of the following problem is associated with output regulation of a natural monopoly
|
loss of quality
|
|
the case for deregulation of an industry rests on the argument that
|
regulations are most costly to implement than the market failure that is to be corrected
|
|
13 the reason pollution occurs is because people trend to
|
maximize their personal welfare balancing private benefits against private costs
|
|
14 the pursuit of a pollution-free environment is
|
probably not in society’s best interest, in view of the extremely high opportunity costs
|
|
individual farmers cannot influence market prices because
|
- they have no market power
|
|
in order to continue earning an economic profit, individual farmers must
|
- continue to improve their productivity
|
|
derived demand means increase in someone’s wages as a result of
|
- increase in demand of goods the worker produces
|
|
when the minimum wage is raised in a competitive market, ceteris paribus
|
some workers are better off and some workers are worse off
|
|
the trend in the us toward the merger of unions is driven by the labor movements’s desire to
|
enhance their political power
|
|
12 the purpose of the initial public offerings is to
|
- raise funds for investment and growth by selling shares of the company to the public
|
|
the us federal tax system results in a slight reduction in inequality of after
|
tax income because- of the progressive nature of the federal income tax
|
|
social security benefits paid by the federal government
|
are in-kind transfers financed by taxes on workers and employers.
|