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ECON 201 Test | Questions with Answers 100% Verified Correct|
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ECON 201 Test | Questions with Answers 100% Verified Correct|
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ECON 201 Test | Questions with Answers 100%Verified Correct|
Factors that determine labor supply - ✔✔-change in consumer tastes
-change in alternative opportunities
-immigration
Price elasticity of Demand - ✔✔Percentage change in quantity/ percentage change in price
Explicit Costs - ✔✔direct payment made in order to run business e.g. wage, rent
Implicit Costs - ✔✔Opportunity cost taken if explicit cost was not expended e.g. wages
employees could have earned without vacation
Accounting Profit - ✔✔Total Revenue - Total Explicit Costs
Economic Profit - ✔✔Total Revenue - (explicit+implicit)
Command and Control Policy - ✔✔remedies of an externality by legally limiting a specific
behavior by a specific entity
Rivalry in consumption - ✔✔the property of a good by which one persons use diminishes
other peoples use
Tragedy of the Common - ✔✔Describes concept that individuals acting independently to
consume a good will, eventually, diminish the supply of the good and every additional unit will
negatively benefit consumers
, diminishing marginal product - ✔✔the property whereby the marginal product of an input
declines as the quantity of the input increases
average variable cost - ✔✔variable cost divided by the quantity of output
average fixed cost - ✔✔fixed cost divided by the quantity of output
price discrimination - ✔✔the business practice of selling the same good at different prices to
different customers
signaling - ✔✔an action taken by an informed party to reveal private information to an
uniformed party
screening - ✔✔an action taking by an uniformed party to induce an informed party to reveal
information
Law of Supply and Demand - ✔✔market price of any good will adjust to bring the quantity
supplied and the quantity demanded into balance
cross price elasticity of demand - ✔✔measures the responsiveness of the quantity
demanded of one good to a change in the price of a related good
Perfect Competition - ✔✔All firms sell an identical product; price takers
Monopoly - ✔✔Control of the market by one company providing a service/product
Demand Increase - ✔✔Price Increases, Quantity Increases
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