Final

Question 1

Attainable Points on a Production are…

Answer 1

Inside or on the PPF

Question 2

Unattainable Points on a Production are…

Answer 2

Outside the PPF

Question 3

Efficient Points of Production are…

Answer 3

On the PPF

Question 4

Inefficient Points of production are…

Answer 4

Inside the PPF

Question 5

Moving from point E to D demonstrates a

Answer 5

Tradeoff

Question 6

Gaining bikes without giving up phones is…

Answer 6

Free Lunch

Question 7

Gain 1 million phones for three bikes demonstrates the …

Answer 7

Opportunity Cost

Question 8

What are factors that shift supply and demand?

Answer 8

Anything else that does not include price changing

Question 9

Movements along supply and demand…

Answer 9

are a change in price

Question 10

Equilibrium occurs when…

Answer 10

supply equals demand

Question 11

Surplus occurs when

Answer 11

The price is greater then the equilibrium price

Question 12

Shortages occur when

Answer 12

The price is less then the equilibrium price

Question 13

A CED that is less than 0

Answer 13

Complements

Question 14

A CED that is more than 0

Answer 14

Substitute

Question 15

Perfectly elastic

Answer 15

Horizonal

Question 16

Perfectly Inelastic

Answer 16

Vertical

Question 17

Total consumer surplus is the area…

Answer 17

below the demand curve and above price

Question 18

Consumer surplus for a specific unit is the difference between…

Answer 18

marginal benefit and the price

Question 19

Total producer surplus is the area…

Answer 19

above the supply curve and below the price

Question 20

Producer surplus for a specific unit is the difference between…

Answer 20

Marginal Cost and price

Question 21

Total surplus is…

Answer 21

Producer Surplus plus Consumer Surplus

Question 22

Market is efficient when marginal benefit ______ marginal cost

Answer 22

equals

Question 23

Price Ceilings: Marginal Benefit_____ Marginal Cost

Answer 23

is greater than

Question 24

Price Floors: Marginal Benefit_____ Marginal Cost

Answer 24

is greater than

Question 25

Quotas: Marginal Benefit_____ Marginal Cost

Answer 25

greater than

Question 26

Whoever is more elastic (buyer/seller) pays _____ of the tax

Answer 26

Less

Question 27

Whoever is more inelastic (buyer/seller) pays _____ of the tax

Answer 27

More

Question 28

If buyers/sellers are perfectly elastic they pay ____ of the tax

Answer 28

none

Question 29

If buyers/sellers are perfectly inelastic they pay ____ of the tax

Answer 29

all

Question 30

Calculating marginal product= change in ____/ change in ____

Answer 30

Output and labor

Question 31

Total Cost =

Answer 31

Total variable cost plus total fixed cost

Question 32

Average total/variable/fixed cost =

Answer 32

Cost/ Output (quantity produced)

Question 33

Average total cost =

Answer 33

Average variable cost plus average fixed cost

Question 34

Perfectly competitive market:Operate in the short run as long as the price is greater than or equal to...

Answer 34

minimum of the average variable cost

Question 35

Perfectly competitive market:Operate in the long run as long as price is greater than or equal to...

Answer 35

Minimum of the average total cost

Question 36

Perfectly competitive market:Set marginal revenue (which is _____ to price) = _____

Answer 36

equal, marginal cost

Question 37

Perfectly competitive market:In the long run: Firms enter if the price is greater than...

Answer 37

average total cost

Question 38

Perfectly competitive market:In the long run: Firms exit if price is less than...

Answer 38

average total cost

Question 39

Perfectly competitive market: In the long run, economic profit equals...

Answer 39

0

Question 40

Monopoly:Calculate marginal revenue=

Answer 40

change in total revenue divided by change in output

Question 41

Monopoly:Single price monopolist: Set marginal revenue (____ to price) =____

Answer 41

not equal, marginal cost

Question 42

Monopoly:Single price monopolist: Determine price by going up to the ____ curve from the profit-maximizing quantity

Answer 42

demand

Question 43

Monopolistic Competition: Set marginal revenue (_____ to price)=

Answer 43

not equal, marginal cost

Question 44

Monopolistic Competition: Determine price by going up to the _____ curve from the profit-maximizing quantity

Answer 44

demand

Question 45

Monopolistic Competition: Operate in the long run as long as the price is greater than or equal to ______

Answer 45

average total cost

Question 46

Monopolistic Competition:In the long run: Firms enter if the price is greater than____

Answer 46

average total cost

Question 47

Monopolistic Competition:In the long run: Firms exit if the price is less than____

Answer 47

Average total cost

Question 48

Monopolistic Competition:In the long run: Economics profits equal ___

Answer 48

0