Question
could you help me with the below multiple questions: If a 5 percent increase in price of one good results in a decrease of 2
could you help me with the below multiple questions:
If a 5 percent increase in price of one good results in a decrease of 2 percent in the quantity demanded of another good, then it can be concluded that the two goods are
Select one:
a. Independent.
b. Substitutes.
c. Normal.
d. Complements.
Which is the most accurate statement about trade?
Select one:
a. Trade helps rich nations and hurts poor nations.
b. Trade makes some nations better off and others worse off.
c. Trading for a good can make a nation better off only if the nation cannot produce that good itself.
d. Trade can make every nation better off.
The social cost curve lies above the supply (private cost) curve for the producer in cases of
Select one:
a. public goods
b. near-public goods
c. negative externalities
d. positive externalities
If firms in a monopolistically competitive market are earning positive profits, then
Select one:
a. new firms will enter the market.
b. barriers to entry will be strengthened.
c. firms will likely be subject to regulation.
d. some firms must exit the market.
The economic concept of "opportunity cost" is most closely associated with which of the following management considerations?
Select one:
a. resource scarcity
b. market structure
c. technology
d. product demand
The term ceteris paribus means
Select one:
a. the greatest good for all.
b. the study of scarcity and choice.
c. value free and testable.
d. all other things remaining equal.
Unionized workers may be able to negotiate with management for higher wages during periods of economic prosperity. Suppose that workers at automobile assembly plants successfully negotiate a significant increase in their wage package. How would the new wage contract be likely to affect the market supply of new cars?
Select one:
a. Supply will shift to the left.
b. Supply will not shift, but the quantity of cars produced per month will increase.
c. Supply will shift to the right.
d. Supply will not shift, but the quantity of cars produced per month will decrease.
If the price of a good decreases while the quantity of the good exchanged on markets decreases, then the most likely explanation is that there has been
Select one:
a. an increase in demand.
b. an increase in supply.
c. a decrease in demand.
d. a decrease in supply.
The marginal revenue curve for a monopoly firm starts at the same point on the vertical axis as the
Select one:
a. average revenue curve.
b. supply curve.
c. average total cost.
d. marginal cost curve.
Changes in the output of a perfectly competitive firm, without any change in the price of the product, will change the firm's
Select one:
a. total revenue.
b. marginal revenue.
c. average revenue.
d. All of the above are correct.
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