econ

• refer to the graph above of an automobile market. The arrow that would best illustrate the impact of lower gasoline prices on the automobile market is

  D

  
• suppose that initially the market for apple watch is at point A on demand curve D2 in figure above. If the price of apple watch decreases A. the demand curve will shift to D3 B.the market will move to point B on demand curve D2 C.the market will move to point C on demand curve D2 D. the demand curve will shift to D1


  C. the market will move to point C on demand curve D2
• which of the following will NOT cause demand for good A to change?

  A. a change in the price of A

  B. a change in the price of B, a complement

  C.a change in the price of C, a substitute

  D. an increase in average income

  E. all of the above cause demand for good A to change

  A. a change in the price of A (for the reason the it'll make quantity demand)
• one purpose of advertising is to:

  A. shift the demand curve for the good to the right

  B. shift the demand curve for the good to the left

  C. shift the supply curve for the good to the left

  D. make the demand curve for substitute goods shift to the right, thus increasing the demand for the advertised good

  A. shift the demand curve for the good to the right
• part of the reason that LeBron James earns millions of dollars each year while school teachers may earn $40,000 is because

  A. the supply of superstar basketball players is very low, while the supply of competent teachers is much larger

  B. demand for LeBron James's talents is very high since he can generate so much revenue for a firm

  C. consumers enjoy basketball to the point that they are willing to spend lots of money and time attending games and watching commercials

  D. all of the above

  A. the supply of superstar basketball players is very low, while the supply of competent teachers is much larger
• when we assume that consumers want to pay the lowest price possible, we assume that consumers are:

  A. cheap

  B.deceitful

  C. rational

  D. informed

  C. rational
• which panel of the above figure represents the changes in the market for textbooks when the cost of paper decreases and the government increases the number of students loans it grants

  A

  
• which of the following is considered a microeconomic issue?

  A. the local university decides to raise tuition for online course offerings

  B. Zimbabwe has experienced a decline in inflation

  C. the economic growth rate was reported at 2.4 percent in the first quarter of 2013 for the united states

  D. the unemployment rate in Greece is 22.8 percent

  A. the local university decides to rise tuition for online course offerings
• refer to the information provided in figure above to answer the questions that follow at a price of $90, there is an excess

  A.demand of 150 sunglasses

  B.supply of 600 sunglasses

  C. demand of 600 sunglasses

  D. supply of 450 sunglasses

  D. supply of 450 sunglasses

  
• perfect competition


  many sellers

  many buyers

  ease of entry

  homogenous product (identical product)
• monopoly


  one seller

  many buyers

  unique products

  blocked entry
• imperfect competition


  imperfect competition refers to market in which the degree of competition among sellers falls somewhere in between these extremes
• what are the two types of imperfect competition

  oligopoly and monopolistic competition
• oligopoly


  only a few sellers

  product could be identical or similar

  barriers to entry
• monopolistic competition


  many sellers and many buyers

  relative ease of entry and exit in the long run

  differentiated products (similar products but not identical)
• match picture with the correct market structure

  oligopoly

  
• match picture with the correct market structure

  perfect competitive

  
• match picture with the correct market structure

  monopolistic competitive

  
• match picture with the correct market structure

  monopoly

  
• many sellers


  there are many firms competing for the same group of customers
• give me examples of many sellers

  computer games and restaurants
• product differentiation


  each firm produces a product that is at least slightly different from those of other firms. as a result rather than being a price taker each firm becomes a price maker and faces a downward-sloping demand curve
• profit maximization rule


  a firm maximizes profits if it produces at an output level (Q) where marginal revenue (MR) = marginal cost (MC)
• at what level of output will this firm operate


  Q3

  
• what price will this firm charge for its product

  P4

  
• whats in the green area


  the total revenue (TR) received by the firm

  
• what does the orange area stand for


  represents the firms total cost at this level of output

  
• what does the yellow area stand for


  the firms profit total revenue - total cost= profit

  
• what are the two main difference in monopolistic and perfect competition

  excess capacity and price markup over marginal cost

  
• a monopolistically competitive firm has___ power to set the price of it's product because ___


  some of the product differentiation3 multiple choice options
• one difference between perfect competition and monopolistic competition is that___

  firms in monopolistic competition face a downward-sloping demand curve3 multiple choice options
• when firms in monopolistic competition are earning an economic profit firms will___

  enter the industry and demand will decrease for the original firms3 multiple choice options
• in monopolistic competition, a firm maximizes its profit by selecting an output at which marginal cost equals___


  marginal revenue3 multiple choice options
• in the figure if the firm is in monopolistic competition it will produce

  40 units3 multiple choice options

  
• in the figure above if the firms is in monopolistic competition its price will be ___

  $33 multiple choice options

  
• fixed cost


  cost that does not depend on the quantity of output produced
• average fixed cost


  fixed cost per unit of output
• variable cost


  cost tat depends on the quantity of output
• average variable cost


  variable cost per unit of output
• total cost


  the sum of fixed cost and variable cost