Micro Economics

Front 1

An externality exists when,

Back 1

A person engages in an activityinfluences the well-being of a bystander and yet neither pays nor receives

Front 2

On the foreign exchange market, an increase in a country’s exchange ratees

Back 2

Decrease the quantity demand of its currency

Front 3

averagefixed cost

Back 3

increase as output increases

Front 4

Economists can be college professor as business analysis. If an increasein businesses’ need for econ analysis

Back 4

less economists will decide to become professors

Front 5

At a price of $9.50/pound, people buy 45 pounds of lamb. At a price of $10.50/pound, people buy 35pounds of lamb. What is the arcelasticity of demand for lamb in this price range?

Back 5

2.5

Front 6

Anexternality exists when

Back 6

a person engages in an activity that influencesthe well-being of a bystander and yet neither pays nor receives payment forthat effect.

Front 7

What is true for monopolythat is not true for perfect competition?'>

Back 7

the firm and the industry are exactly the same entity

Front 8

Theamount of money that a wheat farmer could have earned if he had planted barleyinstead of wheat is

Back 8

an implicit cost

Front 9

The term which means whatever must begiven up to obtain an item is

Back 9

opportunity cost

Front 10

1. Scarcity, every economic decisioninvolves

Back 10

trade off (giving up something)

Front 11

1. Milk can be used to make yogurt andcheese, other things equal, if consumption starts demanding more yogurt

Back 11

demand of milk will increase

Front 12

1. if resources are owned by individualsinstead of government

Back 12

resources used will be guided by changing related to prices as owners attempt to maximize self interest

Front 13

demand for cocaine is uni elastic price of cocaine were to rise 10%

Back 13

dealer income from the sale of cocaine would fall 10%

Front 14

1. Price for a 27 TV = $450. Consumers buy 1000 of them, prices rises to$550 by 600 of them. What is the priceelasticity of demand in this range?s

Back 14

2.5

Front 15

1. In economics “short run” is definedasan

Back 15

a. As a period of time when at least oneof the four factors of production is fixed in supply

Front 16

1. The total cost to build 8 tracthouses is $1,000,000. total cost to build 9 tract houses $1,050,000. What is the Margin cost of the 9thtract house.

Back 16

MC = Change in TC / Change inQuantitytract house.

Front 17

1. Once it becomes obvious that a commonresource is being overused

Back 17

as a period of time when at least one of the four factors of production is fixed

Front 18

if the equilibrium of a dollar in terms of pesos is 20. what is the equilibrium price in terms of dollars

Back 18

.05

Front 19

accounting profit is equal to

Back 19

total revenue minus the explicit cost of producing goods and services

Front 20

1. Comparative advantage is based on?

Back 20

opportunity costs

Front 21

1. Which of the following would nottend to lower the price of VCR?

Back 21

increasing price of pay per view movies on cable tv

Front 22

1. Fresh tuna can be canned or used tomake sushi. Other things equals, ifconsumers starts demanding more sushi?

Back 22

less tuna will be canned and more will be used in tuna sushi

Front 23

1. At a price of $9.50/pound, people buy45 pounds of lamb. At a price of$10.50/pound, people buy 35 pounds of lamb. What is the arc elasticity of demand for lamb in this price range?

Back 23

2.5

Front 24

in economics short run is defined as

Back 24

a period of time during which at least one production input is fixed

Front 25

1. Compared to perfect competition,monopoly in the long run?

Back 25

restricts outputs

changes a higher price

produces at greater than the minimum average total cost

is able to make greater profits

Front 26

1. A foot-Loofah is worth $15 toEdna. But she buys one on sale at Bathand Body works for just $8 what is the consumer surplus that results fromedna’s purchase?

Back 26

$7

Front 27

1. If purchases power parity exists andthe exchange rate is 1.50 u.s. dollars per British pound, then a latte that hasa price of $4.00 in Northridge, California, has a price of _ in London,England?

Back 27

2.67

Front 28

because of scarcity every economic decision involves

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trade off

Front 29

1. Anincrease in demand for a product will

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draw more resources into the production of the good

Front 30

in a market economy

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resources move to higher valued uses in response to change in price

Front 31

1. Ineconomics, short run is defined as?

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a. Aperiod of time during which at least one production input is fixed.

Front 32

1. The entryof new firms into a competitive industry will very likely

Back 32

shift theshort run industry supply curve to the right

cause themarket price to fall

reduce theprofits of firms in the industry

cause themarket quantity sold to rise

Front 33

1. whichof the following would cause an increase in the demand for us dollars.

Back 33

an interest rate cut in Europe

Front 34

Costof $500,000 a year to rent and buy stock. 50,000 a year at working foraccounting and wants to quit what is the opportunity cost?

Back 34

550000

Front 35

Whatwill cause outward shift of the Demand curve for electricity?

Back 35

increase in price of heating oil

Front 36

a raise in the demand for a resource to produce some product (x) will

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raise the cost of using the resource for an alt. product

Reduce the use of that resource in alt lower valued production

Increase the value of the resource

Front 37

Economistscan be college professor as business analysis. If an increase in businesses’need for econ analysis

Back 37

less economists willdecide to become professors

Front 38

Priceelasticity of demand body

Back 38

percentage change of quality demand divide change in price

Front 39

Helena does her bathroom Saturday night and she wants to see a movie andsurf the web. If she doesn’t clean her bathroom and surf the web what is thevalue (note she can not see the movie and surf the web).

Back 39

Value to Helena ofsurfing the web

Front 40

Nodoubt ticket is $45 and you want to illegally sell it (scalp) for $75 what isthe opportunity cost?

Back 40

75

Front 41

Lawof demand states

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Price and quantity demand of a good are inverserelated

Front 42

Morebuyers enter a market Demand increases….

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Quantity supply lends to increase

The product are able to use resourcing with higher opportunity cost

Price of good will raise (or increase)

Front 43

Elasticdemand at any time

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cigarettes

Front 44

GoodA has many substitutes and Good B has none what is true

Back 44

Demand for Good B is likely to be inelastic andGood A is elastic

Front 45

Ineconomics the cost of something is?

Back 45

what you must give to get it

Front 46

InLA sushi and sashimi are very similar food. What effect will an increase in price of sushi have on the demand curve forsashimi in LA?

Back 46

the sashimi demand curve will shift to the right

Front 47

Airlineknow from exp. Vacation travel haveelastic demand for travel whereas business travels have an inelastic demand fortravel in order maximize the airline should?

Back 47

Try to decrease price for vacationtravelers and increase price for business travelers.

Front 48

Monopolistsets price a $12 and sells 250 units. The marginal revenue cost corresponding to this level of output are $6and $8 respectively. What recommendation would you give this monopolist.

Back 48

lower price

Front 49

Consumersurplus is equal the area below the _________ and above___________

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Demand Area; Price

Front 50

On the foreign exchange market, an increase in a country’s exchange rate

Back 50

decrease the quantity demand of its currency

Front 51

Ifyou want to know the long-run equilibrium output of one perfectly competitivefirm, and you are permitted to see only one curve, which one below is mosthelpful?

Back 51

average total cost

Front 52

an increase in demand for a product will

Back 52

draw more resources into the production of the good

Front 53

The entry of newfirms into a competitive industry will very likely

Back 53

shift the short run industrysupply curve to the right

cause the market price to fall

reduce theprofits of firms in the industry

cause themarket quantity sold to rise

Front 54

Apositive consumption externality occurs when

Back 54

When jack receives abenefit from johns consumption of a certain good

Front 55

Video store gave an estimate it will cost 500,000 and to quit her jobshe makes 50,000 and the revenue will be 530,000 what is her econ profit?

Back 55

30k