Econ 201 exam 2 - Study guides, Class notes & Summaries

ECON 201 EXAM 1 BALL STATE; Questions and Answers 100% Correct What is Economics? Correct answer-the study of how people and society manages its scarce resources. How people make everyday decisions, purchases, savings, etc. What is the difference between microeconomics and macroeconomics? Correct answer1. Micro - the study of how households and firms make decisions and how they interact in specific markets. 2. Macro - the study of economy-wide phenomena

In economics, a firm that faces no competitors is referred to as _________________. A. an oligopoly B. a monopoly C. a perfect competitor D. an oligopolizor  B. a monopoly ________________________ arises where many firms are competing in a market to sell similar but differentiated products. A. Oligopolistic competition B. Perfect competition C. Monopolistic competition D. Monogopolised competition  C. Monopolistic competition A firm's ___________ consist of expenditures tha...

willingness to pay (reservation price) - the maximum price that a buyer would be willing to pay for a good or service willingness to sell - the minimum price that a seller is willing to accept in exchange for a good or service surplus - a way of measuring who benefits and by how much producer surplus - the net benefit that a producer receives from the sale of a good or service how to measure producer surplus - the difference between the producer's willingness to sell and the actual price...

Econ 201 Exam 2 With Questions And 100% ALL DETAILED CORRECT ANSWERS

Price ceiling Correct Answer--a legal maximum on the price of a good or service -Example: Rent Control Price Floor Correct Answer--legal minimum on the price of a good or service -Example: Minimum Wage A price ceiling above the equilibrium price is _____ Correct Answer-Not Binding, has no effect on the market outcome The ceiling is a _______ on the price, which causes a shortage Correct Answer--Binding Constraint -Causes a shortage For supply and demand, price is more elastic in...

ECON 201 - FINAL EXAM (JMU) QUESTIONS AND ANSWERS, GRADED A+/ VERIFIED. 4 ways government can react to monopolies - -1. Making monopolized industries more competitive 2. Regulating the behavior of monopolies 3. Turning some private monopolies into public enterprises 4. NOTHING a firm should do what when their P < ATC - -exit a firm should do what when their P < AVC - -shut down a firm should do what when their P > ATC - -enter a firm should do what when their TR < TC - -...

American Military University ECON 201 ECON201 FINAL EXAM Question 1 of 29 One defining characteristic of pure monopoly is that: • A. The monopolist is a price taker • B. The monopolist uses advertising • C. The monopolist produces a product with no close substitutes • D. There is relatively easy entry into the industry, but exit is difficult Question 2 of 29 Which is a barrier to entry? • A. Close substitutes • B. Diseconomies of scale • C. Government licensing ...

ECON 201 FINAL EXAM- Version 1| Questions with Complete Solutions. ECON 201 FINAL EXAM- Version 1| Questions with Complete Solutions.

ECON 101 Final Exam 2024 Questions and Answers Solved 100%;AMU Attempt 1 of 1 Written Apr 26, 2024 11:26 AM - Apr 26, 2024 11:37 AM Attempt Score 100 / 100 - 100 % Overall Grade (Highest Attempt) 100 / 100 - 100 % Question 1 6 / 6 points The representative firm in a purely competitive industry: Will always earn a profit in the short run May earn either an economic profit or a loss in the long run Will always earn an economic profit in the long run Will earn ...

ECON 201 Final Exam Practice Test 2024 (Verified Answers) 1. Profit maximizing firms want to maximize the difference between a. total revenue and total cost. b. marginal revenue and average cost. c. total revenue and marginal cost. d. marginal revenue and marginal cost. - ️️ -A 2. The difference between the firm's total revenues and total cost when all explicit and implicit costs are included is the firm's a. opportunity cost of capital. b. long run average total cost. c. economic p...