Category: Uncategorized

  Panel (a) shows which of the following? (Remember the difference between a change in demand/shift vs quantity demanded/supplied) an increase in demand and an increase in quantity supplied an increase in demand and an increase in supply an increase in quantity demanded and an increase in quantity supplied an increase in quantity demanded and an increase in supply

When a binding price ceiling is imposed on a market to benefit buyers, no buyers actually benefit some buyers benefit, but no buyers are harmed some buyers benefit, and some buyers are harmed all buyers benefit

In less than two years in the early 1920s, the cost of a German newspaper rose from 30 marks to 70,000,000 marks. This is a spectacular example of market power caused by a change in the country’s standard of living market power caused by a single firm controlling the newspaper production inflation caused by increased productivity in the economy inflation caused by an increase in the quantity of money in the economy

Very talented high-school athletes who skip college to become professional athletes   obviously do not understand the value of a college education usually do so because they cannot get into college understand that the opportunity cost of attending college is very high are not making a rational decision since the marginal benefits of college outweigh the marginal costs of college for high-school athletes

All of these are examples of unintended consequences EXCEPT Seat belt laws cause drivers to drive faster An increase in taxes leads to a decrease in your income Drug enforcement leads to more crime Telling your child to stop causes them to do it more.

Costs that cannot be avoided and should not be included in your marginal costs because they have already been incurred are known as differential costs opportunity costs transaction costs      sunk costs

In a trade, one side may have an unfair advantage over the other. This is a result of Unintended consequences Asymmetric Information The free rider problem  Irrational behavior

All points on an indifference curve indicate 1. equal cost 2. equal utility 3. equal profit 4. equal income

If this game is played only once, then the most likely outcome is that   ABC charges a low price and QRS charges a high price ABC charges a high price and QRS charges a low price both firms charge a high price both firms charge a low price  

The theory of consumer choice examines how   consumers make utility-maximizing decisions wages are determined in competitive labor markets prices are determined in competitive goods markets firms make profit-maximizing decisions