The demand for gasoline in the short run is

Question 29 options:

unit elastic because people tend to consume a stable amount of gasoline per period

inelastic because there are very few good substitutes for gasoline

perfectly inelastic because people have no choice but to buy gasoline

elastic because people can easily switch to public transportation

The difference between a change in supply and a change in the quantity supplied is that the latter is

Question 30 options:

produced by a change in product's own price, while the former is caused by a variety of variables other than the product's price

shown as a shift in the supply curve while the former is displayed graphically as a movement along a supply curve

conditional upon a change in the former, but not vice versa

determined by the willingness of producers to sell while the former is set by the ability of firms to produce

When a perfectly competitive firm finds that its market price is below its minimum average variable cost, it will sell

Question 31 options:

any positive output the entrepreneur decides upon because all of it can be sold

nothing at all; the firm shuts down

the output where marginal revenue exceeds marginal cost.

the output where average total cost equals price

One reason why the "fast-casual" restaurant market is competitive is that

Question 32 options:

it is trendy and therefore is likely to have a customer following

barriers to entry are low

consumption takes place in public

demand for "fast -casual" food is very high

Which of the following will shift the demand curve for a good?

Question 35 options:

a decrease in the price of the good

a decrease in the price of a complementary good

an increase in the price of the good

a change in the technology used to produce the good

The cost incurred from the production of an additional unit of a product

Question 37 options:

is called a loss

must be zero for a firm to be efficient

is called opportunity cost

is a marginal cost to the firm

Which of the following would cause both the equilibrium price and equilibrium quantity of cotton (assume that cotton is a normal good) to increase?

Question 39 options:

a drought that sharply reduces cotton output

an increase in consumer income

a decrease in consumer income

unusually good weather that results in a bumper crop of cotton

Which of the following is an example of economies of scale?

Question 43 options:

An international firm is having problems with global communications. As a result, its costs are increasing

A car company invests $10 million into research and development for hybrid cars so it can make a higher profit in the future

An oil company decides to build a new refinery so it can meet the future needs of its customers

A technology firm increases production of mobile phones to decrease the average total cost of production

An economic ________ is a simplified version of some aspect of economic life used to analyze an economic issue

Question 44 options:

tradeoff

variable

model

market

What is "natural" about a natural monopoly?

A natural monopoly

Question 45 options:

develops automatically due to economies of scale

is the only firm legally allowed to produce a product due to a government patent

produces a product whose usefulness increases with the number of consumers who use it

develops automatically due to diseconomies of scale

An oligopoly is a market structure

Question 46 options:

where only one firm supplies the entire market

where only one firm buys an input in a factor market

where a small number of interdependent firms compete

where many sellers compete by selling an identical product