Eco

Posted on Apr 16, 2019 in Language

     1.   A firm characterized as a price taker

     2.   All of the following are characteristics of perfect competition EXCEPT

     3.   The perfectly competitive firm cannot influence the market price because

     4.   Each firm in a perfectly competitive industry

     5.   Which of the following is NOT a characteristic of a perfectly competitive industry?

     6.   Under perfect competition what would happen to a firm that sets its price slightly above market price?

     7.   What is the consequence of a firm in a competitive market selling a homogenous product?

     8.   Which of the following is the closest example of a perfectly competitive market?

     9.   In competitive markets

   10.   In competitive markets

   11.   In competitive markets

   12.   Because of market forces, firms have ________ when competition is widespread.

   13.   Which of the following lists three main characteristics of a competitive market?

   14.   Real-life examples of competitive markets

   15.   Which is an example of an almost perfectly competitive market?

   16.   Competitive markets exist when

   17.   A farmers’ market is close to being a perfectly competitive market. Which characteristic of a perfectly competitive market do most farmers’ markets violate?

   18.   The presence of many buyers and sellers is an important characteristic of competitive markets because it allows

   19.   The market for hot dogs on the streets of New York City can be considered close to a perfectly competitive market. Because there are so many individuals buying and selling hot dogs

   20.   In a competitive market, if one firm raises its price relative to the other firms in the market, consumers are willing to go to another firm because

   22.   Which characteristic of competitive markets is mainly responsible for ensuring that prices will be kept low?

   23.   Which characteristic of competitive markets is mainly responsible for firms making zero economic profits in the long run?

   25.   Profit per unit is the difference between

   26.   If a perfectly competitive firm is maximizing profits in the short run, what does this mean?

   27.   Firms in every market structure

   30.   Total revenue minus total cost equals

   31.   Marginal revenue is the change in total

   32.   Profit maximization occurs when

   33. When marginal revenue equals marginal cost

   43.   At what point does the profit-maximizing perfectly competitive firm produce?

   44.   When marginal revenue is greater than marginal cost, the firm should

   45.   If the price is greater than both the marginal cost and the average variable cost, what should

the firm do?

   53.   Where is a perfectly competitive firm’s break-even output level?

   55.   In the short run, under what conditions should the firm shut down?

   57.   A firm will shut down in the short run

   58.   What should the firm do if there is no possible output where the price would at least be equal to average variable costs?

   59.   If a competitive firm can make enough revenue to cover its variable costs, the firm will

   60.   Which of the following conditions will result in the firm making an economic profit?

   61.   Which of the following conditions will result in the firm making zero economic profits?

   62.   Firms will always make a positive economic profit if the price they charge is

   63.   Firms will break even if the price they charge is

   64.   When talking about economic profits in a perfectly competitive market, the difference between the long run and the short run is that in the short run, firms

   97.   In the long run, if a firm is making a loss, it will

MONOPOLY

     1.   A monopoly

     2.   Monopolists

     3.   Barriers to entry

     4.   Two conditions allow a single seller to become a monopolist. Those two conditions are that the

firm must

     5.   Monopoly power is a measure of

     6.   In the movie Forrest Gump, the title character’s Bubba Gump Shrimp Company is able to gain monopoly power in its market because of

     7.   Which of the following is NOT a necessary characteristic of monopolies?

     8.   The typical result of monopoly is ________ prices and ________ output than we find in a competitive market.

   10.   Control of resources, problems raising capital, and economies of scale are all examples of

   11.   Three natural barriers to entry are

   12.   Control of resources is an example of

   13.   The best way to limit competition is to

   14.   Ash is the preferred wood to be used in the production of baseball bats. If a company was to buy the rights to harvesting the ash trees out of all the forests in North America, which of the following barriers of entry has this company created?

   15.   Problems raising capital is an example of

   16.   Raising capital to compete against an entrenched monopolist

   17.   Reginald has developed a new social media site that he feels can compete heavily with Facebook. Unfortunately, he cannot find someone to lend him enough money to market his product to consumers. Reginald is facing which kind of barrier to entry?

   18.   Economies of scale exist

   19.   Economies of scale is an example of

   20.   A natural monopoly

   21.   In the soda industry, production costs per unit continue to fall as the firm expands. In this type of industry, smaller rivals trying to enter the industry

   22.   Two government-created barriers to entry are

   23.   Market-created and government-created barriers

   24.   Licensing

   25.   In instances when having a single firm in the market makes sense, governments ________ to minimize negative externalities.

   26.   What is the usual rationale for governments to issue monopoly-promoting licenses to firms providing services such as trash collection?

   27.   Apple and Google apply for hundreds of patents every year. These patents

   28.   Patents and copyright law

   29.   Patents and copyrights can

   30.   After a patent on a product expires,

   31.   One argument against patent and copyright laws is that they

   32.   Why do governments issue patents?

   33.   Why do copyrights expire after a set period of time?

   34.   Both monopolies and competitive firms

   35.   A price maker

   36.   The price effect refers to how

   37.   The output effect refers to how

   38.   The profit-maximizing rule for a monopolist is

   39.   Which of the following can fall below the x axis when graphing price and cost against quantity?

   40.   The demand curve for the product of a firm in a competitive market is ________, and the demand curve for the product of a monopolist is ________.

   41.   The demand curve for the product of a firm in a competitive market is ________, and the demand curve for the product of a monopolist is ________.

   42.   Because the demand curve for a monopolist is downward sloping,

   43.   The marginal revenue lies ________ the demand curve because there is a(n) ________ effect whenever the price is lowered.

   48.   If a monopolist is producing a quantity where marginal revenue is equal to $32 and the marginal cost is equal to $30, the monopolist should ________ to maximize profits.

   90.   Market failure occurs

   91.   Inefficient output and price, few choices for consumers, and rent seeking are all problems associated with

   93.   When several goods or services are sold together as a single take-it-or-leave-it package, that package is called a(n)

   95.   Which statement about rent seeking is INCORRECT?

   96.   The market price for a New York City taxi medallion is less today than it was in 2013. This is because

   97.   When a competitive market becomes controlled by a monopoly, the price ________ and the output ________.

  118.   When resources are used to secure monopoly rights through the political process

  119.   Rent seeking

  124.   Three examples of solutions to the problems of a monopoly are harnessing the benefits of

________, ________ trade barriers, and ________ markets.

  125.   Harnessing the benefits of competition, reducing trade barriers, and regulating markets are three

  127.   Antitrust laws are designed to

  131.   A tariff is a(n)

  132.   Reducing trade barriers creates ________ competition, ________ the influence of monopoly, and ________ the efficient use of resources.

  133.   One benefit from tariffs would be

  135.   The point of the 1890 Sherman Act was to

  136.   Which provision in the U.S. Constitution blocks the erection of trade barriers between neighboring states?

  137.   Which pricing rule generates the greatest welfare for society?

           Price Discrimination

     1.   Price discrimination exists when a firm sells ________ goods at more than one price to ________ groups of customers.

     2.   Price discrimination exists when a firm is able to sell the same good at more than one price to different groups of

     3.   A firm can be identified as practicing price discrimination when

     4.   Which of the following best describes price discrimination?

     5.   In 1996, Victoria’s Secret shipped different catalogs to customers based on their buying habits. Frequent customers received catalogs with lower prices, whereas new customers received catalogs with higher prices for those same items. Victoria’s Secret was practicing

     6.   A price maker is a firm that

     7.   For a firm to be able to practice price discrimination, it must be a

     8.   One reason that firms may be unable to utilize price discrimination as a viable strategy is because

     9.   Which of the following conditions is a requirement for price discrimination?

   11.   Which of the following statements is true?

   12.   A firm cannot price discriminate if it

   13.   Airlines require every passenger with a ticket to have a matching, government-issued photo identification. Price discrimination is made easier because

   17.   The hotel attempts to distinguish between groups of buyers in order to

   18.   Why would the hotel require a guest to provide appropriate identification to receive the American Association of Retired Persons (AARP) member rate, the military rate, or the government rate?

   22.   Firms are most likely to engage in price discrimination if

   23.   Despite the gain from higher profits, firms are not always able to price discriminate because

   24.   Price discrimination can help improve efficiency in the market because goods are sold to more people, thus increasing profits. If all consumers have the same tastes, will a firm be able to price discriminate?

Monopolistic Competition and Advertising

     1.   Monopolistic competition means that

     2.   If one were to discuss why the term “monopolistic competition” is used, the best description would be that the industry is “monopolistic” because it

     3.   Which of the following industry structures is best associated with low barriers to entry?

     4.   One critical characteristic of monopolistic competition is that

     5.   A monopolistically competitive market is characterized by

     7.   Which of the following most closely approximates the conditions of monopolistic competition?

     8.   Which of the following is the best example of a monopolistically competitive market?

     9.   Which of the following is the best example of a firm operating in a monopolistically competitive market?

   10.   Firms in a monopolistically competitive industry produce

   15.   Which of the following statements bestdescribes firms under monopolistic competition?

   16.   Product differentiation

   17.   Which of the following is always associated with monopolistic competition?

   28.   Which of the following market structures describes an industry in which all firms produce differentiated output and there are few barriers to entry?

   29.   Which of the following is the most accurate description of industries?

   34.   The shape and/or slope of the marginal revenue curve under monopolistic competition is

   35.   Which of the following statements best describes the price, output, and profit conditions of monopolistic competition?

   36.   The descriptor “monopolistic” in the term “monopolistic competition” best describes

   55.   The theory of monopolistic competition predicts that, in long-run equilibrium, a monopolistically competitive firm will

   56.   A monopolistically competitive firm

   57.   Profit-maximizing, monopolistically competitive firms

   58.   The fast-food, bottled water, and cereal markets are all examples of

   60.   Fast-food restaurants are a good illustration of

   62.   The greeting card industry is

   71.   Which of the following best describes the relationship between price and marginal revenue for monopolistic competitors?

   77.   If positive economic profit exists in monopolistic competition, there is

   78.   If monopolistically competitive firms are making positive economic profits, then new firms would

   79.   As new firms enter a monopolistically competitive industry, it can be expected that

   82.   The entry of new firms into a monopolistically competitive industry causes the

   83.   You operate a monopolistically competitive firm and you notice that your company is making an economic profit. Which of the following is most likely to happen?

   84.   The demand curve for a monopolistically competitive firm is downward-sloping because of

   87.   The difference between price and marginal cost is

   97.   Excess capacity best describes the fact that

   99.   A monopolistically competitive firm is inefficient because the firm

  100.   One source of economic inefficiency from monopolistic competition is

  101.   The concept of markup under monopolistic competition would best be described as the

  102.   Markup would not exist in

  103.   Markup would generally be lowest under

  104.   Markup would generally be highest under

  105.   Which of the following is evidence of market power?

  106.   When a perfectly competitive firm or a monopolistically competitive firm is making zero economic profit

  107.   If a monopolistically competitive firm wants to maximize profits, it will increase production until marginal

  108.   Product differentiation makes the demand for a monopolistically competitive firm’s product

  109.   Advertising is designed to

  113.   Because of successful advertising

  118.   Why would perfectly competitive industries advertise even though individual firms do not?

  119.   False advertising is generally regulated by

  120.   According to the discussion in the textbook, Kevin Trudeau

  124.   All of the following are examples of product differentiation, EXCEPT

  125.   A unique feature of monopolistic competition is

  129.   Low barriers to entry and exit mean that in the ________ run for monopolistically competitive firms, it is ________ to generate economic profit.

  130.   Monopolistic competitors do not enjoy the ________ demand of perfect competition. As a result, firms will never produce at ________ average total cost.

  132.   With monopolistic competition, firms have demand curves that are ________ the lowest possible cost.

  135.   The gap between the actual quantity produced by a monopolistically competitive firm and the optimal quantity in a competitive market is known as

  136.   A markup is only possible when a firm enjoys some degree of

  137.   Which term best defines the pricing difference between monopolistic competition and competitive markets?

  138.   Productive ________ is/are considered an indicator of social benefit.

  140.   Monopolistically competitive firms are troublesome to regulate for all of the following reasons, EXCEPT

  145.   Successful advertising can increase demand across a wide spectrum of consumers, but it happens unevenly. Some consumers respond more dramatically than others to advertising. This explains the change in ________ of the demand curve that occurs after an advertising campaign.

  146.   The primary purpose of advertising for a monopolist is to increase

  147.   Brand labels and packaging can convey status or quality, even if there is little to no physical difference in two competing products. If we are to assume that consumers are rational decision makers, this indicates that brand labels and packaging create additional ________ for a buyer.

  149.   Because monopolistic competitors each advertise, potential realized gains often

Oligopoly and Strategic Behavior

     1.   Like a pure monopoly, an oligopoly is characterized by

     2.   Which of the following is NOT a characteristic of an oligopoly?

     3.   Which of the following have greater incentives to collude and to form cartels in an effort to achieve monopoly-like profits?

     4.   A monopolistically competitive market consists of many sellers, an oligopoly consists of ________ seller(s), and a monopoly consists of ________ seller(s).

     5.   A monopolistically competitive market consists of ________ seller(s), an oligopoly consists of ________ seller(s), and a monopoly consists of one seller.

     6.   A firm operating in an oligopolistic market has ________ market power compared to a ________.

     7.   Economists measure oligopoly power present in an industry by using

   17.   Being part of a cartel is generally good for a firm because it can reduce output while increasing prices and profits. Yet most cartels have failed. Why is this the case?

   18.   The Organization of Petroleum Exporting Countries (OPEC) is considered a cartel by economists because the

   19.   The levels of profits in a cartel are

   20.   When two or more firms set prices or quantities in unison, economists refer to them as a

   23.   In the United States, ________ laws prohibit collusion between rivals.

   38.   When a third firm enters a market that was previously categorized as a duopoly, the equilibrium price will ________ and the equilibrium quantity will ________.

   39.   When more firms enter into a market that was previously characterized as a duopoly, it will

   40.   The ________ effect occurs when the market price either decreases or increases by the respective entrance or exit of a rival firm in the market.

   55.   A game where firms that pursue a dominant strategy that results in noncooperation where all players are worse off is a

   56.   When decision makers face incentives that make it difficult to achieve mutually beneficial outcomes, we say they are in a(n) ________ dilemma.

   86.   ________ have dominant strategies that make player decisions easy to predict.

  104.   According to Section 2 of the Sherman Antitrust Act, a person who attempts to monopolize commerce among the several states is guilty of a(n)

  105.   The ________ Act was passed in 1890, and the ________ Act was passed in 1914.

  106.   The two major pieces of antitrust legislation in the United States are the

  107.   In general, antitrust laws are ________ to enforce.

  108.   In 1974, the U.S. attorney general filed suit against which telecom company for violating antitrust laws?

  109.   According to the Clayton Act, price discrimination is considered socially detrimental if it

  110.   ________ restrict(s) the ability of the buyer to deal with competitors, and ________ require(s) the buyer to purchase an additional product in order to buy the first.

  111.   According to the Clayton Act, persons are not allowed to serve as the director on more than ________ board(s) in the same industry.

  112.   Which federal agency is responsible for enforcing antitrust laws?

  115.   An example of a tying arrangement is

  117.   Motorola and Apple are two large competitors in the cellular phone market. It is a violation of the ________ Act if Sanjay Jha serves on the board of directors for both Motorola and Apple.

  118.   If attorneys can prove beyond a reasonable doubt that a merger between two major airlines lessens competition, then the merger likely violates the ________ Act.

  120.   The practice of setting prices deliberately below average variable costs in order to put a rival out of business is known as ________ pricing.

  121.   The practice of setting prices deliberately below ________ costs in an effort to drive a competitor out of the market is known as predatory pricing.

  122.   It might be rational for a firm to price its products below ________ costs in order to drive potential entrants from entering a market.

  129.   A ________ externality exists when the number of customers who purchase a good or use it influences the quantity demanded.

  130.   A firm that produces a product that is characterized by ________ externalities finds it easier to keep its customers from switching to rivals.

  133.   When customers face significant ________ costs, the demand for the existing product becomes more inelastic.

  134.   The presence of significant positive ________ externalities can drive small firms out of business or force them to merge with larger competitors.

  135.   When customers face significant switching costs, the

The Demand and Supply of Resources

     1.   Derived demand is

     2.   Factors of production are

     3.   Which of the following is NOT a factor of production?

     4.   Derived demand best describes the demand for which of the following options?

     5.   Derived demand is NOT represented by the demand for

     6.   The marginal product of labor is the

     9.   The diminishing marginal product of labor exists when the last worker hired produces ________ the previous worker.

   29.   If the price of pencils falls, the marginal product of labor will ________ and the value of the marginal product of labor will ________.

   30.   Bobby knows that she is producing a value just equal to her wage. If the price of what she makes falls, Bobby knows that she

   94.   A situation with only one buyer of labor is called a(n)

95. Kaitlin has recently been trained as a highly specialized medical physician. There is only one hospital that needs her services. Kaitlin can expect her wages to be ________ compared to what her wages would be in a situation of perfect competition.

   96.   Which of the following situations describes a monopsony?

   98.   Tamar’s sister complains that Tamar gets paid considerably more as a caterer than she is paid as a chef, even though the careers are similar. What might explain this situation?

  113.   Most of the total income made in the U.S. economy is paid as

  114.   Of the total income earned in the U.S. economy, about

  117.   Income in the U.S. economy consists of

  118.   Factors of production are another term for the

  120.   Which of the following are the three factors of production?

Income, Inequality, and Poverty

     1.   What theory might partially explain why a person perceived as unattractive might earn less than a person seen as attractive?

     2.   Late-night employees working in a 24-hour store often earn more than similar employees who work the day shift. What explains this difference in pay?

   15.   An employee gains work experience by staying in a job for a long period of time. An economist would expect this employee’s wages to

   16.   What theory would suggest that learning material on your own generates the same benefits as those achieved by formally attending classes and receiving a degree?

   17.   When comparing individuals’ wages, differences in their levels of education and training

   24.   What theory suggests that learning material on your own would not generate the same benefits as those achieved by formally attending classes and receiving a degree?

   29.   When comparing a union job to a nonunion job, we would expect to see

   30.   What is a significant difference between a union job and a nonunion job in terms of pay?

   31.   Between two unionized firms, one would expect workers to receive higher wages in a firm

   32.   What theory would suggest that an employee should receive a wage higher than the equilibrium wage rate?

   38.   When workers of the same ability are not paid the same amount because of a group characteristic such as ethnic origin or age, we call this

   40.   Besides sex discrimination, women might earn less than men in the workplace because women

   41.   The wages of those near retirement decrease slightly because these workers are

   53.   Why is it unlikely that income inequality could ever be eliminated?

   54.   How can a stronger legal system reduce income inequality?

   78.   One of the causes of poverty in the United States is

   86.   In the United States, households that have very little income are provided funds that can be used only for the purchase of food (more popularly known as food stamps). What do food stamps represent?

   88.   The antipoverty program in the United States that helps the greatest number of households is the

   95.   Earnings gaps can be explained by all of the follow factors, EXCEPT

   96.   ________ wages are higher than equilibrium wages, offered to increase worker productivity.

   97.   A ________ is a work stoppage designed to aid a union’s bargaining position.

   99.   Rachelle graduated from a university with a degree in chemical engineering. During her years of employment, she became proficient in a particular type of process automation software. In addition, she spent countless hours outside of work amassing training certifications that augmented her work experience. Her collection of education, skills, and experience is defined as her

  133.   ________ are transfers (mostly to the poor) in the form of goods and services instead of cash.

  135.   ________ are composed of markets in which goods or services are traded illegally.

  136.   Why is income inequality data unreliable in developing countries?

  137.   Comparing U.S. income inequality in 1980 and 2010 produces a distorted picture for all EXCEPT which of the following reasons?

  138.   The terms “marginal poor” and “long-term poor” categorize differing potentials for

  139.   Economic mobility reduces ________ over long periods of time.

  140.   In the late nineteenth-century United States, sharecropping was a common occupation among newly freed slaves and poor whites. The structure of the system left sharecroppers barely subsisting from their production, and deeply indebted to the landowners. This economic arrangement prevented the concept of