econ final

If resources are overallocated to production of a good, this means that

With conventional supply and demand curves, If both demand and supply increase,

Which of the following best describes the law of demand?

Which of the following best describes the law of supply

Which of the following are determinants for the supply of paper?
I. A change in expectations about future prices of paper II. A change in the number of companies selling paper III. A change in the price of wood pulp used to make paper IV. A change in the price of substitutes for paper

Which of the following do economists expect to occur when the government sets effective price ceilings or floors in markets that are currently allocatively efficient?

Which of the following correctly describes a goal of the government when imposing a price control?

The cross-elasticity of demand coefficient for lettuce and tomatoes is −2.4. Based on this information, what is the relationship between these two goods?

If the government wants to increase revenue by imposing a per-unit excise tax, which of the following types of goods would allow it to BEST achieve that objective?

All of the following are determinants of elasticity of demand EXCEPT

If the coefficient for elasticity of demand is 0, the demand is

A bookstore raises the price of its coffee by 10%, and the spending by its customers on coffee (the total revenue) does not change.
This indicates that, in this price range, demand for this store's coffee is

If the elasticity of demand coefficient for sunglasses is 0.25, which of the following price changes would decrease the quantity demanded by 10%?

If total gate receipts for sales of concert tickets decrease when the price is increased

As income increases from $10,000 to $20,000, the quantity of hot dogs demanded decreases from 100 to 20.
This means that hot dogs

Eggs and bacon are complements, and eggs and cereal are substitutes. Which of the following could be true based on this information?

The computer market includes two manufacturers, Peach and Kiwi. When the price in the market is $100, Peach will produce 100 computers and Kiwi will produce 200.
When the price rises to $200, Peach will produce 200 computers, and Kiwi will produce 300.
When the market price increases from $100 to $200, what is the market elasticity of supply using the midpoint formula?

Which of the following is an example of producer surplus?

Which of the following explains why the law of diminishing marginal returns occurs?

A unique short-run problem in the production of a particular good is the Law of Diminishing Marginal Returns.
Which of the following statements best explains this phenomenon?

In the long run, a firm increases its inputs by 15%, and its outputs increase by 25%. Which of the following is TRUE?

All of the following can be used to explain why a firm experiences economies of scale EXCEPT

Each year you give the workers of your company an increase in wages. This would cause

Consider the following market structure types.
In which of the market structures above are long-run economic profits possible?

Which of the following below would be subtracted from total revenue to calculate economic profits?
I. Property taxes
II. Electricity costs
III. Wages from job sacrificed to start new business
IV. Interest forgone when funds are used to buy equipment

Which of the following describes a situation in which a firm is earning normal profits?

Which of the following describe(s) the output at which an individual firm would be profit-maximizing?
I. ​ Marginal cost exceeds marginal revenue by the greatest amount. II. Marginal revenue is equal to marginal cost. III. Total revenue exceeds total cost by the greatest amount. IV. Marginal revenue exceeds marginal cost by the greatest amount.

Which of the following correctly describe methods for calculating a firm's economic profits or losses?

If positive externalities exist in a perfectly competitive market with no government intervention, which of the following is TRUE?

Which of the following is an example of a positive externality?

If the production of doughnuts creates a pleasant smell that benefits those who live near the doughnut factory, even though they are not involved in the production or purchase of the doughnuts.
Assuming doughnuts are produced and sold in a perfectly competitive market, which of the following would be TRUE?

Which of the following describes an appropriate remedy for a specific market failure?

Assuming it should produce, if a perfectly competitive firm is currently producing output such that the price of the last unit produced is $15 and the marginal cost of the last unit is $10, that firm could increase its profit by

In which of the following situations will a perfectly competitive firm produce the productively efficient output?

Which of the following statements can be said of a perfectly competitive firm in long-run equilibrium?

If a firm shuts down in the short-run, its losses will equal

A perfectly-competitive firm should always shut down in the short-run if which of the following is true?

Which of the following is true about a perfectly competitive firm’s supply curve?

A perfectly-competitive firm will operate in the short-run only if

The wool industry is perfectly competitive and currently in long-run equilibrium. The government grants a lump-sum subsidy to firms operating in the wool industry. Assuming the government continues to provide the lump-sum subsidy, what do economists predict will happen to the profit-maximizing output and price for individual producers of wool as it adjusts to a new long-run equilibrium?

As compared to a perfectly-competitive industry with the same costs, the equilibrium price for a monopoly would be

A pharmaceutical company owns a patent for an antibiotic, and it is currently earning positive economic profits from sales of the medication. Following the expiration of the patent, what is the most likely impact on the market price and the company's profit for this medication?

Entry barriers that lead to the creation of monopolies include

Regardless of whether a firm is a monopoly or a member of an oligopolistic or monopolistically competitive industry, a graph of any non-discriminating, imperfectly competitive firm will have which of the following characteristics?

In which of the following situations is a firm likely to have the GREATEST market power?

Which of the following is NOT a characteristic of a monopoly?

The relative elasticity of the slope of the monopolist’s demand curve is impacted significantly by the level of barriers to entry by rival firms.
Which of the following statements reflects an accurate relationship between barriers to entry and the price elasticity of demand for the monopolists’ product?

The following are the four different types of market structures for product markets.
I. Perfect Competition II. Monopolistic Competition III. Oligopoly IV. Monopoly
In which of the above market structures would a firm be a price maker (searcher)?

The minimum condition for a monopoly to continue to operate in the long run is that it must​

Which of the following describes how perfect price discrimination by a monopoly affects the amount of consumer surplus?

Which of the following is true at the profit-maximizing output for a perfectly competitive firm but NOT for a monopoly, if both are earning economic profits?

Which of the following statements regarding the allocation of resources is NOT true?