microeconomics // ECON // ECONOMICS

Monopolistic competition means: <a market situation where competition is based entirely on product differentiation and advertising. <a large number of firms producing a standardized or homogeneous product. <many firms producing differentiated products. <a few firms producing a st...

A 1) Which of the following is NOT a characteristic of the market structure for monopolistic competition? A) Firms are price takers. B) There are a large number of firms. C) Firms are free to enter and exit. D) Firms compete on product quality, price, and marketing. C 2) Brand names are an ...

Economists typically define money as: A. anything in which its value can be inflated. B. a means of payment that lacks intrinsic value. C. currency that is issued by a central bank. D. a widely accepted means of payment. - ANSWERS D Are checking accounts money? A. No, because checking accou...

When the central bank decides it will sell bonds using open market operations - ANSWER the money supply decreases When the central bank decides to increase the discount rate, the interest rates - ANSWER increase Atlantic Bank is required to hold 10% of deposits as reserves. if the central bank...

1. Suppose an economy produces only ice cream cones. If the price level rises, the value of currency a. rises, because one unit of currency buys more ice cream cones. b. rises, because one unit of currency buys fewer ice cream cones. c. falls, because one unit of currency buys more ice cream...

Free goods - ANSWER Goods that are not scarce and therefore available without limits. Zero opportunity cost e.g. Air Economic goods - ANSWER A consumable item that is useful to people but scarce in relation to its demand Opportunity cost - ANSWER The value of the next best alternative foregone...

The short run is a period of time in which... a) The amount of output is fixed. b) Nothing the firm does can be altered. c) Prices and wages are fixed. d) The quantities of some resources the firm uses are fixed. - ANSWER D The Short Run is a period of time in which? a) Nothing the firm does ...

When reference is made to the ____________, it means the specific amount of income needed for a basic standard of living. A. poverty trap B. income line C. income gap D. poverty line - ANSWER D A situation of __________ arises when one group receives a higher share of total income or wealth...

When reference is made to the ____________, it means the specific amount of income needed for a basic standard of living. A. poverty trap B. income line C. income gap D. poverty line - ANSWER D A situation of __________ arises when one group receives a higher share of total income or wealth...

d. y to x Refer to Figure 4-24. All else equal, an increase in the productivity of turkey farmers would cause a move from a. DA to DB. b. DB to DA. c. x to y. d. y to x. a. DA to DB Refer to Figure 4-24. All else equal, a sale on chicken would cause a move from a. DA to DB. b. DB to DA. ...

Which of the following is NOT a topic studied in Macroeconomics? A) gross domestic product B) the unemployment rate C) the price of IBM computers D) the inflation rate - ANSWER C Which of the following is a topic studied in Macroeconomics? A) gross domestic product B) the wage of auto w...

When the price goes down, the quantity demanded goes up. The price elasticity of demand measures: A) how much the price goes down. B) how much the equilibrium price goes up. C) the responsiveness of the price change to an income change. D) the responsiveness of the quantity change to the price ...

Price elasticity of demand is a measure of the responsiveness of quantity demanded to changes in a. interest rates. b. price. c. supply. d. demand. - ANSWER b. price. Price elasticity of demand is the ratio of the a. absolute change in quantity demanded to the absolute change in price....

1. In the federal penitentiary at Lompoc, California, inmates used packages of mackerel to buy items such as haircuts at the prison barber shop and laundry services. What function do these packages of mackerel serve? A) They functioned as money. B) They served as a corruption deterrent. C) Th...