Econ Test 4

Front 1

the concept of monopoly is ambigious because

Back 1

anyone can be shown to be a monopolist if the product is defined narrowly enough

Front 2

suppose we wish to use the strict definition of "monopoly". Then we could claim that Hallmark is not a monopoly because, in the real world

Back 2

there ARE substitutes for Halmark cards

Front 3

suppose we wish to use the strict definition of "monopoly". Then we could claim that Hallmark IS a monopoly because

Back 3

Hallmark is the sole producer of Hallmark cards

Front 4

suppose we wish to use the strict definition of "monopoly". Then we could claim that Harvard University IS NOT a monopoly because

Back 4

there are alternatives to a Harvard education

Front 5

Using the definition of monopoly as the "sole seller" of a good, pick the true statement below

Back 5

Both of these are true
A. McDonald's is not a monopoly because it is not the sole seller of hamburgers
b. McDonald's IS a monopoly because it's the sole seller of big mac's

Front 6

No seller is a monopolist in the strict sense of the word because

Back 6

no demand curve is completely inelastic

Front 7

Market power is ____ related to the elasticity of demand

Back 7

inversely

Front 8

Why were business corporations so frequently identified with MONOPOLIES in the early 19th century?

Back 8

corporations at this time very commonly enjoyed goverment-granted priviliges not available to others

Front 9

Price-takers differ from price-searchers in which of the following ways? Price-searchers

Back 9

will not loose all their sales if they raise their prices above what competitors are charging

Front 10

The demand curve faced by an airline selling tickets from LA to NY will tend to be more elactic

Back 10

the larger the number of airlines competing on the route

Front 11

The logical principle for maximization can be stated as follows:

Back 11

Do it if the benefit from doing it is greater than the cost of doing it

Front 12

Marginal revenue for price taker is

Back 12

equal to price

Front 13

When does a price-searcher's marginal revenue curve lie below its demand curve?

Back 13

when it cannot confine price reductions to the new sales it's trying to attract by lowering its price

Front 14

A firm selling in price-takers market

Back 14

faces a perfectly elastic demand curve

Front 15

Sellers who find that the demand for their product is relatiely inelastic at the price currently being charged

Back 15

could increase their net revenue by raising the price

Front 16

Price discrimination by sellers usually results in

Back 16

new and additional opportunities for some buyers

Front 17

Price discrimination by sellers is usually observed only in situations where

Back 17

seelers can effectively identify customers by their demand for the product

Front 18

The fuction of the financial statement which colleges ask parents to fill out to make their children eligible for tuition scholarships is to

Back 18

provide information about the deman curves of potential customers

Front 19

Why are prices for groceries and household items typically higher at a 24 hour convenience store compared to similar stores that are open from 6am to 11 pm?

Back 19

shoppers options are generally fewer in the middle of the night

Front 20

Movie theaters usually set lower prices for children than for adults because

Back 20

they suspect that,at the regular or adult price, the deman for children is very elastic

Front 21

Restaurants catering to both a lunch and a dinner trade are likely to mark their prices up above the cost of the food nore for dinner than for lunch because

Back 21

the deman is less elastic at dinner

Front 22

If grocery stores in high-crime areas charge higher prices than stores elsewhere, it is because

Back 22

there is less competition in high crime areas

Front 23

Publishers charge much higher prices for a book in hardcover than for the same book in paper cover because

Back 23

the demand for hardcover books is less elastic at the same price

Front 24

The word olligopoly means

Back 24

few sellers

Front 25

Government licensing of occupations or trades

Back 25

is often controlled by firms in the licensed industry to prevent competition

Front 26

The basic federal "antitrust" law prohibiting combinations in restraint of the trade and attempts to monopolize is the

Back 26

The Sherman act

Front 27

The merger of two daily new york city newspapers would be an example of a

Back 27

horizontal merger - The combining of two companies in the same industry

Front 28

Mergers between companies that previously existed in a supplier-buyer relationship is called a

Back 28

vertical merger

Front 29

who is most likely to benefit from a law that requires people who want to enter the taxicab business to prove that they are thoroughly competent, honest, and reliable before they can obtain a license

Back 29

owners of taxicab licenses

Front 30

If Safeway reduced its grocery prices below cost in a particular metropolitan area and kept them there until all other grocery stores in the area had been force into bankrupcy, Safeway would almost certainly sustain a huge net loss

Back 30

in the short run and the long run because grocery stores would reappear quickly when Safeway subsequently set very high prices

Front 31

Who is likely to be most persistent about complaining to state regulatory authorities taht unlicensed movers are defrauding customers?

Back 31

licensed movers

Front 32

Cartels rarely succeed for long because the find it difficult to

Back 32

keep members from offering discounts and new firms from entering

Front 33

Fill in the blanks: Other things constant, if the elasticity of demand _____, the market power of the firm _______

Back 33

decreases (less competition), increases (more profit)

Front 34

T/F-In a real free-market or capitalist economy, corporations would still be able to get corporate welfare and they would enjoy the benefits of trade restrictions such as quotas and tariffs to protect them from foreign competition

Back 34

false

Front 35

T/F-In a real free-market, people would have to suffer the consequences of second-hand smoke at bars and restaurants

Back 35

false - NO because nobody would force them to be at those bars

Front 36

T/F-In a real free-market, there would be no discrimination laws telling businesses who they could and could not serve or hire

Back 36

TRUE

Front 37

T/F-John Stossel in Greed argued that John D. Rockeffeller is an example of somebody who took advantage of consumers and taht it was customers who complained about him?

Back 37

false

Front 38

T/F-One major point of the Greed video was that the profit-seeking motive was a good way to benefit customers?

Back 38

true - because better products would be made

Front 39

T/F-In is America#1?, it was clear that socialism worked much better than capitalism in India?

Back 39

false -socialism hindered the economy

Front 40

T or F -Dinesh D'Souza argued that one clear, objective measure of whether or not a country is doing well is to see how many people want to leave the country

Back 40

false

Front 41

T o F -William anderson in his article claimed that wal-mart destroys communities

Back 41

false

Front 42

T or F -I argued that it is hypocritical when people claim price gouging or rip-offs on the part of business but they feel perfectly fine when they are the sellers or when they want to pay as little as possible

Back 42

true

Front 43

T or F -In a real free-market, I or any other guy would be able to use power of gvt through legislation to date Pam Anderson or Lindsay Lohan

Back 43

False

Front 44

T o F - Thomas Di Lorenzo in "Anti-trust, Anti-truth" claimed that John D. Rockefeller and other "robber barons" restricted output and lowered prices on their products

Back 44

False

Front 45

I mentioned that James Barksdale, former CEO of Nestcape, wa a hypocrite because

Back 45

Netscape Navigator had about 80-90% of the market and that he had no problem with that and did not view himself as a monopolist

Front 46

T/F -According to supporters of free-markets the only real monopolies are the gvt or businesses that have gvt-granted privilege?

Back 46

True

Front 47

T/F - I argued in my article "antitrust is anticompetitive" and in class that it is anticompetitive if Starbucks demanded that a mall prevent the opening of a competing coffee chain as the condition for them to open shop in the mall?

Back 47

False

Front 48

T/F - In the same article, it was argued that Las Vegas tourists would be exploited by higher prices if the merger between MGM and Mandalay takes place?

Back 48

False

Front 49

T/F - Discrimination in one form or another is practiced by everybody?

Back 49

True

Front 50

In the capitalism.org readigs, antitrust laws were characterized as necessary for an efficient competitive market to operate?

Back 50

false