1. A public good is characterized by which of the following?
I. People who do not pay for the good can be excluded from using it.
II. If one person uses the good, it does not reduce its usefulness to others.
III. It is easy to determine who must pay the costs of the good.
2. The Toscano Pizza Company faces a demand for its pizzas which obeys the law of demand. Thus, if the owner lowers the price she charges per pizza, the number of pizzas sold would
3. A newspaper reports, Coffee growers in Brazil and Colombia organized to consider world coffee supply levels. If this group should decide to act in a concerted effort for the benefit of the group as a whole, the likely result is
4. What is the opportunity cost of buying a new car?
5. If one of a firm's fixed costs rises,
6. Stephanie's Waterbeds faces the demand shown below for its beds. Each bed costs $300 to produce (no matter how many are made). What price should Stephanie charge to maximize her profits?
|Price (per bed)||Quantity Demanded (per day)|
7. If the production of a good creates negative externalities, the private market will produce
8. All of the following are characteristics of oligopolies EXCEPT
9. Which of the following statements is/are true?
I. A price ceiling causes a shortage if the price ceiling is below the equilibrium price.
II. A price floor causes a surplus if the price floor is above the equilibrium price.
III. A price ceiling causes a shortage if the price ceiling is above the equilibrium price.
IV. A price floor causes a surplus if the price floor is below the equilibrium price.
10. Which of the following is necessary for perfectly competitive markets to exist?
11. Property (or unearned) income (that is, profits, interest, and rents) accounts for approximately what percentage of total national income?
12. Which of the following are capital as defined by economists?
13. Which of the following would most likely result in the market price of a good falling?
14. Which of the following could cause supply to decrease in the short run?
15. Which type of merger creates the greatest threat of increased monopoly power?