What is the law of demand?

Group of answer choices

Other things equal, as price rises, the quantity demanded rises and vice-versa.

The market system must let consumers be free to make choices.

If companies try to change consumer demand, the executives can be arrested.

Other things equal, as price rises, the quantity demanded falls and vice-versa.

Flag question: Question 2Question 22.5 pts

Why do we think marginal revenue is price for a purely competitive seller?

Group of answer choices

The purely competitive seller must drop the price on all units to sell one more unit.

Purely competitive sellers differentiate their products to sell as many units as they can at the going price.

The purely competitive seller has a very small share of the market. It can sell as much as it wants at the going price without affecting the market.

the definition of marginal revenue is price for all market structures.

Flag question: Question 3Question 32.5 pts

Which of the following would not change the demand for cucumbers?

Group of answer choices

A change in the incomes of people in the market.

A change in the price of cucumbers.

A change in the expectations of consumers.

An increase in the number of consumers who want cucumbers.

Flag question: Question 4Question 42.5 pts

Suppose the price of local cable TV service increased from $16.20 to $19.80 and as a result the number of cable subscribers decreased from 224,000 to 176,000. Price elasticity of demand is:

Group of answer choices

.8

1.2

1.6

8

Flag question: Question 5Question 52.5 pts

Which is not a characteristic of pure or perfect competition?

Group of answer choices

There are many firms selling similar products.

Products are differentiated.

There is easy entry and exit.

This market structure benefits consumers, but not firms.

Flag question: Question 6Question 62.5 pts

The marginal revenue = marginal cost rule applies:

Group of answer choices

in the short run, but not in the long run.

in the long run, but not in the short run.

in both the short run and the long run.

only to a purely competitive firm.

Flag question: Question 7Question 72.5 pts

How many sellers are there in a monopoly market?

Group of answer choices

1

2

3

4

Flag question: Question 8Question 82.5 pts

In the vidette entitled "Where You Lead" what was one example given of how competitors can differentiate their products?

Group of answer choices

They can leave the market they are in and enter another market.

They can provide quality add on services like warranties and repairs and keep the consumers returning to them.

They can bribe government officials

They can make the best product possible.

Flag question: Question 9Question 92.5 pts

Which is of the following is not an example of accounting expense, but only economic expense?

Group of answer choices

Expenses for paying salaries

the value of alternative uses of the company's resources

Expenses for paying insurance

Expenses for paying rent of the building.

Flag question: Question 10Question 102.5 pts

What does economies of scale refer to?

Group of answer choices

As the quantity of output goes down the cost per unit goes down.

As the quantity of output goes up, the cost per unit goes up

As the quantity of output goes down, the cost per unit goes down

As the quantity of output goes up, the cost per unit goes down.

Flag question: Question 11Question 112.5 pts

A purely competitive seller is:

Group of answer choices

both a price maker and a price taker

neither a price maker nor a price taker

a price taker.

a price maker.

Flag question: Question 12Question 122.5 pts

Which is true regarding scarcity?

Group of answer choices

Anytime one good is more scarce than another that good is more expensive.

Neither scarcity nor abundance can be manufactured or changed. This is based on physical scarcity of the resources.

If a good is needed, such as water or food, the economic system can make so much of it that it is not expensive.

Necessities always provide higher utility, and are more expensive than luxuries.

Flag question: Question 13Question 132.5 pts

The Production Possibilities Curve (PPC) is where the balance of the production of two products full utilizes all of an economy's factors of production. Since this is true, which point would be drawn almost at the curve, but just a little bit below it?

Group of answer choices

Future Possibility

Depression

Recession

Diamond Water Paradox

Flag question: Question 14Question 142.5 pts

What is shown on each axis of a production possibilities curve?

Group of answer choices

The price of a product is shown on the vertical axis, and the quantity of the product sold is shown on the horizontal axis.

The quantity of one good produced is on the vertical axis, while the quantity of another good is shown on the horizontal axis.

Products are shown on one axis while resources are shown on the other axis.

Rate is shown on one axis while time is shown on the other one.

Flag question: Question 15Question 152.5 pts

Explicit costs are:

Group of answer choices

Non-financial costs

Opportunity costs of using the firm's own resources.

actual cash payments

Alternative uses of the firm's own resources.

Flag question: Question 16Question 162.5 pts

Assuming no change in product demand, a pure monopolist:

Group of answer choices

can increase price and increase sales simultaneously because it dominates the market.

must lower price to increase sales.

adds an amount to total revenue which is equal to the price of incremental sales.

should produce in the range where marginal is negative.

Flag question: Question 17Question 172.5 pts

Which of the following is not one of the four factors of production as discussed in economics?

Group of answer choices

Demand

Land

Labor

Capital

Flag question: Question 18Question 182.5 pts

What does inelastic demand mean?

Group of answer choices

The quantity demanded changes by a higher amount than the price changes.

The quantity demanded changes by a lower percentage than the price changes.

Consumers will buy the same amount even if the price changes.

Consumers will stop buying if the price increases.

Flag question: Question 19Question 192.5 pts

The concept of opportunity cost:

Group of answer choices

may not apply in command economies since they may be ignored by central planners.

suggests that the use of resources in any particular line of production means that alternative outputs must be forgone.

is irrelevant if the production possibilities curve is shifting to the right.

suggests that unlimited wants can be satisfied.

Flag question: Question 20Question 202.5 pts

What is marginal cost?

Group of answer choices

the cost of producing each unit

the average cost of producing each unit

all of the costs of producing a unit

the additional cost of producing one more unit