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11 Cards in this Set
- Front
- Back
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The price elasticity of demand for gasoline is 0.2, and the price of gasoline rises 10 percent. As a result, the quantity of gasoline demanded decreases by ___ percent.
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2
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If the demand curve for desktop computers shifts rightward and at the same time the supply curve shifts leftward, then
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more information is needed to determine the effect on the equilibrium
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An unusually sunny growing season causes an increase in french wine production. however, due to France's political positions, Americans have decided to boycott French wine. What is the effect on the equilibrium price and quantity of French wine?
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The equilibrium price of French wine rises, and the equilibrium quantity decreases.
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As the extent to which a natural monopolist can pad its costs under rate of return regulation increases, which of the following occurs?
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The price of the product produced by the regulated firm rises.
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Suppose that Jennifer likes pizza and hotdogs. If her marginal utility per dollar spent on pizza is 6 and the marginal utility per dollar spent on hotdogs is 5, Jennifer
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is maximizing her marginal utility
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If instead of working on his own as a finance consultant making $25,000, Joe takes a job at a circus, the $25,000 is an....
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Opportunity cost
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Which of the following statements regarding the production possibilities frontier is true?
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Points inside the frontier are attainable.
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Which of the following is an example of adverse selection?
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You are more likely to get long-term health care insurance if your family has a history of Alzheimer's.
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At the quantity of 1,000 balloons, the maximum someone is willing to pay for the balloon is 70cents, the marginal cost of the balloon is 40cents, and the price of a balloon is 60cents. The consumer surplus from the 1,000th balloon equals.....
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1/2(.7-.4)(price=.6)
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Firms that can price discriminate between customers do so to.....
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increase their profit.
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Country X has a more equal distribution of income than country Y if...
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country X's Lorenz curve is closer to he line of equality than is country Y's Lorenz curve.
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