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222 Matching questions

  1. A moral ________ exists when people make less of an effort to avoid misfortune.
  2. Since the market demand for a product determines how many workers are needed, a firm's demand for labor is _______.
  3. Group ________, which are a per se violation of the Sherman Act (1890), occur when a group of companies pressure a manufacturer to terminate its relationship with one company.
  4. When profits are _______ than normal, they are known as sub-normal and firms will exit the market.
  5. A price of $7.00 would cause a ________ of ___ units and drive the price ______.
    -shortage, 110, and up
    -surplus, 110, and up
    -surplus, 30, and down
    -surplus, 110, and down
  6. The "__________ _____" theory, which was first mentioned by the Scottish economist Adam Smith, is the idea that by doing what is best for ourselves we will ultimately accomplish what is best for society.

    Example: A selfish entrepreneur starts an airline with only one goal - profitability. However, his airline will help serve and meet the needs of millions of people.
  7. (Use the graph above)
    To take advantage of economy of scale, at what output level should the car factory produce?
    -Q1 or Q3
  8. ____________ costs, which are forgone (missed) opportunities, are the costs associated with making one choice over the next best choice.
  9. Which of the following is NOT an economic resource?
  10. If an increase (or decrease) in price does not change the total revenue, demand is ____ elastic.
  11. Joey has a monopoly on a lemonade stand. He can sell 25 glasses of lemonade to the other neighborhood kids at a price of $1 per glass. If he wants to sell 26 glasses of lemonade, Joey can only charge $.97 per glass. What is the marginal revenue on the 26th glass of lemonade Joey sold?
    - (-$.31)
  12. Which of the four prices would cause the firm to incur a loss?
    -Price 3
    -Price 2
    -Price 2 or 4
    -Price 3 or Price 4
    -Price 4
  13. Cable television is an example of a:
    -Non-Rival, Excludable Good
    -Rival, Excludable Good
    -Non-Rival, Non-Exclusive Good
    -Rival, Non-Exclusive Good
  14. (Refer to graph above)
    If the price per unit was $2, a shortage of ____ units would occur.
  15. __________ law, which could also be called "competition law," is the prevention and correction of the unreasonable restraint of trade.
  16. (Assume wages are equal for each worker hired)
    The marginal cost of the firm is at a minimum after hiring the ______ worker.
  17. Which of the following choices does the blue line (B) represent?
    -Average Variable Cost (AVC)
    -Marginal Cost (MC)
    -Average Total Cost (ATC)
    -Average Fixed Cost (AFC)
  18. Long-run ______________ occurs in a perfectly competitive firm when ATC is at the minimum point.
  19. It is possible for a firm to have positive accounting profits at the same time they have negative economic profits.
  20. Examples of ______, which is a broad term that refers to human resources, include:
    1 - Physical - plowing a field
    2 - Mental - CEO analyzing a market
    3 -- Combination of Physical and Mental - Surgeon diagnosing (mental) prior to performing surgery (physical)
  21. Your vehicle is an example of a:
    -Rival, Non-Exclusive Good
    -Non-Rival, Non-Exclusive Good
    -Non-Rival, Excludable Good
    -Rival, Excludable Good
  22. ________ companies are legal monopolies that do not abuse power.
  23. If an increase in price results in a decrease in total revenue, demand is price ________.
  24. The Herfindahl index measures whether an industry is a monopoly or perfectly competitive. A Herfindahl index of zero is perfectly competitive and a Herfindahl index of _______ indicates a monopolized industry.
  25. The ___ curve shows the average total costs with producing a number of units. Due to economies of scale and diseconomies of scale, this curve is normally shaped like a "U."
  26. A ______ monopoly has laws protecting it from new/potential competitors.
  27. Since monopolistic competition is ____________, (P) Price > Marginal Cost (MC).
  28. A supply and demand ________ is a graph or table that depicts the relationship between prices and the corresponding quantities demanded and quantities supplied.
  29. A ___ __ violation is an automatic violation of antitrust laws.

    Examples include:
    1 - Horizontal price-fixing
    2 - Group boycotts
    3 - Production quotas
    4 - Horizontal territorial limitations/Market divisions
    5 - Tying arrangements
  30. In exchange for a tune-up on his car, a baker gives a birthday cake to an auto mechanic. This type of exchange is known as ________.
  31. Pick the two market types that are the most efficient at producing output:
    -Monopolistic Competition
    -Perfect Competition
  32. __________ surplus is the difference between the amount that a firm sells a good or service for (this is indicated by the demand curve) and the minimum amount it would have accepted for the good or service.
  33. __________ economics, which states facts and is based on empirical evidence, forms a hypothesis and tests it using scientific evidence. It commonly uses models and theories to quantitatively predict the impact of each choice.

    Example: Due to the city's deficit, tax cuts are not possible at this time.
  34. __________, which is closely tied to supply and demand, is the impact that a change in price has on the buyers and sellers in a market.
  35. Non-_____ competition occurs when a firm differentiates its products by providing higher-quality products or product characteristics (warranties, return-policy, store hours) that match the preferences of consumers.
  36. _______________ is the branch of economics that studies the allocation of resources by individuals, households, firms, and industry sectors.
  37. Which of the following choices does the red line (A) represent?
    -Average Variable Cost (AVC)
    -Marginal Cost (MC)
    -Average Total Cost (ATC)
    -Average Fixed Cost (AFC)
  38. There are four primary characteristics of an oligopoly:
    The first characteristic of an oligopoly is product _________.
  39. In the _____ market economic system, which is also known as capitalism, supply and demand determine the price of goods.
  40. It is normal for a price floor to cause a _______ ________, which is when the quantity supplied is greater than the quantity demanded.
  41. The most __________ resources, which are also the scarcest resources, are used conservatively.
  42. ____, which is a group of 11 major oil producing countries, is a good example of a cartel. They attempt to control the price of oil by limiting production.
  43. (Refer to graph above)
    The market equilibrium price is _____ dollars.
  44. The Law of _______ states that as the price of a product increases, the quantity of that product supplied increases.
  45. Demand for a good increases when the price for the good __________.
  46. If the price of a movie ticket is $10 and the price of an NBA ticket is $100, the relative price of the NBA ticket is ___ movie tickets.
  47. Independent firms that agree to limit production to increase prices and profits are collectively referred to as a _______.
  48. When the price of a good rises (or falls), the demand for ______________ goods will also rise (or fall).

    Example: Hotdogs and hotdog buns
  49. The idea that when government regulates/intervenes with the business markets it is protecting the best interests of society is known as the _______ interest theory.
  50. _________ Profits = Total Revenue - (Explicit + Implicit Costs)
  51. Which of the following is an economy of scale?
    -Firm doubles its input and triples output
    -Firm quadruples its input and triples output
    -Firm triples its input and triples output
  52. A(n) ___________ of scale is when increased output leads to increased per unit costs.
  53. ____ equilibrium is a strategy that requires each firm to base its decisions based on the strategies of the other firms.
  54. To maximize profits, a firm should produce at the point where:
    MR = __
  55. Public goods are also called ___________ goods. Two common examples of public goods are the national interstate system and national defense.
  56. At the point that marginal utility has diminished to zero, ______ utility is at its maximum.
  57. The red shaded region of the graph above represents _________ surplus.
  58. Since there are incentives for individual firms within a cartel to cheat, cartels are generally not _______.
  59. ___________ competitors, such as monopolies, oligopolies, and monopolist competitions, often charge higher prices than necessary to maximize profits.
  60. A(n) _____________ is the impact (costs or benefits) of a transaction on a party that is not directly involved in the transaction.
  61. ___________ directorship, which is when the same person serves as the director of two or more competing companies, is prohibited by the Clayton Act (1914).
  62. Market ___________, which is a per se violation of the Sherman Act (1890), is when competitors within an industry agree to divide up a large territory into multiple segments. After the large territory is divided, each competitor has an "effective" monopoly of their region.
  63. When competing firms in an oligopoly follow price decreases, but not price increases a _______ demand curve occurs.
  64. When it is economically efficient and related to a valid business purpose, the "rule of ________" allows unintentional and reasonable restraints of trade.
  65. The demand curve D1 represents __________ demand.
  66. ____________ causes firms to be efficient.
  67. In an oligopoly market if one firm raises its prices substantially and the other firms maintain their pricing levels, ____________ effect is likely.
  68. If the price of an iPod is $100 and the price of a flat screen television is $550, the ________ price of the television is 5.5 Ipods.
  69. Since firms are price-takers, the primary decision for the firm is the __________ to produce.
  70. Since public goods are available to everyone, it is unlikely that the _______ sector will ever provide a sufficient quantity of public goods.
  71. If an increase in price results in an increase in total revenue, demand is price __________.
  72. The per se violations found in the Sherman act are violations of ___________ agreements, agreements between two companies that are in competition with each other.
  73. The primary difference between macroeconomics and microeconomics is that macroeconomics focuses on the overall ________ economy while microeconomics focuses on individual (firms, regions, or industries) economies.
  74. (Refer to graph above)
    If the price per unit was $7, a surplus of ____ units would occur.
    -19 units
    -20 units
    -17 units
    -22 units
  75. One of the main focuses of economics is the _________ of resources.
  76. Marginal physical ________ is the extra output that is gained from one more unit of input.
  77. The ___ is an administrative agency that regulates unfair trade and prevents the formation of monopolies that will negatively impact competition.
  78. Example:
    Jim builds a table. He spends 2 hours building the table and could have been working instead at $20/hour. Since he was building a table, he could not work for wages. The wood, screws, and glue he used cost $45.
    Jim is able to sell the table for $100. Using the economic profits method, his profits are $____.
  79. _______ effect is when a consumer's real income changes and as a result the consumer purchases more or less of all goods.
  80. The third and probably most important characteristic of an oligopoly is _____________ decision making.
  81. The firm in the above table will incur a marginal cost of $_____ to produce the fourth unit of output.
  82. Cartels will sometimes agree to split a large geographic area up into smaller geographic areas. The result is multiple ______ monopolies.
  83. In perfect competition, the firm is a price-_______.
  84. Most economical models assume that firms attempt to ________ profits.
  85. Production _______, which is a per se violation of the Sherman Act (1890), is an agreement to restrict supply in order to cause higher prices.
  86. Most of the goods we buy on a daily basis are normal goods. Normal goods are also called __________ goods.
  87. While necessary items (food) are relatively inelastic (we have to eat!), _______ items (sports cars) are highly elastic.
  88. In the 1980's, Medicare was faced with rapidly rising healthcare costs. As a result, Medicare implemented a ____________ Payment System. Medicare now pays a preset reimbursement rate to hospitals and doctors.
  89. ________ of scale is when the per unit cost of production is decreased due to the increased output of the firm.
  90. With a monopoly, the price is higher than marginal revenue (MR). With perfect competition, price is _______ to marginal revenue (MR).
  91. Due to antitrust laws, monopolies are always illegal in the United States.
  92. Price _______________ is when two customers are charged different prices for the exact same product or service.
  93. A company that dumps toxic waste into a water supply affecting the health of a nearby town is an example of a __________ externality.
  94. A major manufacturer produces both dishwashers and refrigerators. If the price of refrigerators skyrockets, we can expect the supply of ______________________.
    -dishwashers to increase
    -refrigerators to decrease
    -dishwashers to decrease
    -refrigerators to remain the same
  95. Isaac loves ice cream and would be willing to pay $10.00 for ice cream on a hot summer day. He happens across Basking w/ Robbins who sells ice cream sundaes for $3.00 each and decides to purchase one. His consumer surplus is $______.
  96. (Fixed costs are $75 and each worker earns $150 per day)
    Determine the total costs and average variable costs of producing 30 units.
    -TC = $525, AVC = $16
    -TC = $450, AVC = $15
    -TC = $525, AVC = $15
    -TC = $525, AVC = $17.50
  97. A ____________ externality occurs when one party attempts to "one-up" another party.
  98. Long run equilibrium dictates that perfectly competitive firms have an economic profit of _____. This is known as a normal profit.
  99. The ________ Act of 1890, which is the source of all American anti-monopoly laws, was created to prevent artificial increases in price by the restriction of supply or trade.
  100. Which of the four prices would allow the firm to break even?
    -Price 4
    -Price 3
    -None of the above
    -Price 1
    -Price 2
  101. Examples of _____, which is a broad term that refers to all natural resources, include the following:
    the ground we walk on, crude oil, timber, oceans, and mineral deposits.
  102. A(n) _________ is a market that is dominated by a few interdependent producers. It is very difficult, but not impossible, for new firms to enter this type of market.
  103. The main way the Federal government addresses the issue of income disparity is _________.
  104. The green line represents a price _____, which is a limitation on the minimum price that can be charged for a good. This artificially restricts the price from falling below a certain level and causes a surplus (excess supply) to occur.
  105. Many economists consider the Lorenz Curve to be a measure of social ____________.
  106. When the price of a good rises (or falls), the demand for a(n) ___________ good will also rise (or fall).

    Example: Coke and Pepsi
  107. If Marginal Revenues (MR) falls below ATC, the firm is ________ money.
  108. Imperfect competition produces an output level where (P) price is _______ than (MC) marginal cost.
  109. In the long run, a monopolistic competitor will make ________ profits (break even).
  110. ______________ competition is the most prominent type of market structure in the United States.
  111. Which of the following choices does the yellow line (D) represent?
    -Average Variable Cost (AVC)
    -Marginal Cost (MC)
    -Average Total Cost (ATC)
    -Average Fixed Cost (AFC)
  112. The green line represents a price _______, which is a government imposed limitation on the maximum price that can be charged for a good. This artificially restricts the price from rising above a certain level and causes a shortage to occur.
  113. The Law of ___________ Marginal Utility causes the Avg. Total Costs (ATC) curve and the Avg. Variable Costs (AVC) curve to slope upwards on the right side of the graph.
  114. To determine the ________ physical product, divide the total product by the number of workers.
  115. It is normal for a price ceiling to cause a supply _________, which is when the quantity demanded exceeds the quantity supplied.
  116. Which of the following are implicit costs associated with owning a small business?
    (Select all that apply)
    -Equipment Rental
    -Invested money not earning interest
    -Owner earning a smaller salary than they would have earned at another job
  117. Economics is the social science that focuses on the wise usage of ____________.
  118. Improvements in production ___________ always lead to an increase in the supply of a good.
  119. A baker can produce 100 birthday cakes for an average total cost of $16. His average variable cost (AVC) is $10. The baker has a total fixed cost (TFC) of $_____.
  120. When a society operates _______ the Production Possibilities Curve, resources are unemployed.
  121. Since a monopoly can control the total quantity of a product on the market, the monopolist firm is a price-_______.
  122. Use the graph above to determine the answer:
    If the country depicted in the graph above becomes perfectly equal, 80% of the households will earn ___ of the income
  123. If the firm in the above table produces three units of output, the Average Variable Costs (AVC) will be $______.
  124. All you can eat buffets stay in business due to the law of _____________ marginal utility.
  125. The U.S. ________ Department can bring criminal actions against the violators of antitrust law.
  126. To produce optimum profits, a firm should produce at ___.
  127. When a company differentiates its product from the other products on the market, it is attempting to make the product ____ elastic.
  128. When the cross-price elasticity of demand between two goods is ________, the two goods are complements.
  129. Which of the following market types will produce the most output?
    -Perfect Competition
    -Monopolistic Competition
  130. In the ____-run, there are not fixed costs. All costs are variable and supply has fully adjusted to changes in demand.
  131. A demand _____, which has a negative slope, is a graphical representation of the law of demand. It slopes downward due to the inverse relationship between prices and quantity.
  132. Basking w/ Robbins, which is willing and able to sell ice cream sundaes for $1.50, sells ice cream sundaes for $3.00 each. They sold 400 sundaes at $3.00 each on Saturday. Which answer correctly states the surplus that occurred?
    -Producer Surplus of $600
    -Consumer Surplus of $600
    -Producer Surplus of $1,200
    -Consumer Surplus of $1,200
  133. The most important characteristic of an oligopoly is _______________.
  134. Social Security benefits cause people to retire at a ________ age.
  135. The demand curve for an individual firm in a perfectly competitive market is horizontal. The horizontal demand curve depicts the ___________ elastic demand function.
  136. The car factory is producing at output level Q3, which is a _____________ of scale.
  137. With monopolistic competition it is easy to go into business, but ___________ to stay in business.
  138. Example: Sam's Choice Cola (Generic)
    Consumption of a(n) ____________ good decreases (instead of increases) as income rises.
  139. Since there are no (or few) __________ to entry in perfect competition, it is easy for other firms to enter the market when firms are making greater than normal profits. Monopolies and cartels use these to their advantage to generate greater than normal (zero) profits.
  140. Examples of ________, which refers to equipment/machinery that is used to produce goods, include: computers, buildings, and assembly line machinery.
  141. The Federal ______ Commission Act (1914) outlawed "unfair or deceptive business practices" and "unfair methods of competition."
  142. A ________ is one firm who makes up an entire industry - there are not substitutes for the good or service they provide.
  143. An example of a ___________ tax is Social Security tax. Social Security charges individuals 7.65% of earnings up to $106,800 (2010 limit). Once the individual has paid taxes on $106,800 of earnings, he does not have to pay additional Social Security taxes (even if they earn ten million dollars!).
  144. Consumer ________ is the difference between what a consumer is willing to pay for a good or service (this is indicated by the demand curve) and the price he actually pays for the good or service.
  145. The amount that a consumer is willing to pay for a good or service is the ___________ price.
  146. ________ primarily affect the market by limiting the supply of labor that is available to the firm. This results in increased wages for the workers at the cost of additional jobs.
  147. The _______ curve graph (shown above) is a useful tool for studying inequality in the distribution of income.
  148. When profits are _______ than normal, they are known as super-normal and new firms will enter the market.
  149. _______ ___________, which is a regressive tax, is a tax that imposes equal amounts on employees and employers.
  150. The Production Possibilities Curve (PPC) depicts the opportunity costs associated with the production of two products. This curve allows us to see the ____________ of products that the economy is capable of producing.
  151. The firm above is in a perfectly competitive market that demands P2 pricing. What quantity should the firm produce to maximize its profits?
    -The firm should shut down
  152. The firm in the table above has fixed costs of $_____.
  153. When marginal revenue exceeds marginal cost, the firm should __________ output.
  154. The _____-run is a period of time during which some of the expenses are fixed and supply cannot fully adjust to changes in demand.
  155. Due to excess _________, monopolistic competition is inefficient.
  156. The potential ________ effect, which can sometimes be eliminated by a conglomerate merger, is when the potential of a new competitor drives businesses to efficiency and lower prices for the consumer.
  157. When they produce four units of output, the firm in the above table has an Average Total Cost (ATC) per unit of $_____.
  158. The Marginal Costs (MC) curve ALWAYS intersects the Avg. Total Costs (ATC) curve and the Avg. Variable Costs (AVC) curve at their _______ points.
  159. Use the graph above to determine the answer:
    In the country represented by the above graph, 60% of the households earn ____ of the income.
  160. When an economist uses the word ____, he is referring to a business.
  161. ________ agreements are agreements between sellers and buyers.
  162. A(n) _______ good (theoretical) is an inferior good that experiences an increase in demand as the price increases.
  163. In a free market, market _____________ occurs at the intersection of supply and demand.
  164. _________________ refers to the analysis and study of a national economy.
  165. If a bakery can produce 500 loaves of bread daily with 10 workers and 600 loaves of bread with 11 workers, the marginal product of the eleventh worker is ____ loaves of bread.
  166. Example:
    Jim builds a table. He spends 2 hours building the table and could have been working instead at $20/hour. Since he was building a table, he could not work for wages. The wood, screws, and glue he used cost $45.
    Jim is able to sell the table for $100. Using the accounting method, his profits are $____.
  167. The 2010 U.S. Federal income taxes are as follows:
    Earn up to $8,375 and you will be taxed at 10%
    Earn over $373,651+ any you will be taxed at 35%

    A ___________ tax, which is also referred to as "Robin Hood" taxation, increases the marginal tax rate for those who earn more and have the greatest impact on income disparity.
  168. For a firm to survive in a monopolistic competition market, product ____________ is required.
  169. Consumer surplus is graphically illustrated by the area above the market price and below the _______ curve.
  170. To maximize profits, what price/quantity level should the firm produce at?
    -P1, Q1
    -P2, Q2
    -P3, Q3
  171. When a firm increases production, the average _____ costs will always decrease.
  172. If a firm was producing at the Q2 level, they should:
    -Decrease production
    -Do nothing
    -Increase production
  173. For the interdependent decision making to be effective, the number of firms in an oligopoly must be ______.
  174. The total costs for the firm in the graph above to produce 130 units of output is $________.
  175. If consumers' income is _________, the demand for a normal product will rise.
  176. ATC = AVC + ___
  177. Adam Smith, who wrote The Wealth of Nations, divided payments into the following categories:
    Land - Rent
    Labor - Wages
    Capital - Interest
    Entrepreneurship - ????????

    Payment for Entrepreneurship is called _______.
  178. Since all of the firms are essentially selling the ____ product, firms do not advertise in a perfectly competitive market.
  179. The minimum point on the ___ curve is the long-run shutdown price.
  180. Since there are a large number of firms and consumers in perfect competition, it is difficult to __________ the market.
  181. The _________ Antitrust Act (1914) was created to address the "the rule of reason" and "actual adverse impact" loopholes in the Sherman Act. Since this act only requires "probable adverse impact," it makes it easier to penalize those who are attempting to restrain trade.
  182. Due to an inverse relationship between price and quantity, the demand curve slopes ____.
  183. A ______ market economic system blends aspects of capitalism (free market) with the government run (command) economic system.
  184. To avoid shutting down in the short run, the minimum price (MR) for the product is:
    -Price 2
    -Price 1
    -Price 3
    -Price 4
  185. When advances in technology are made, the supply curve moves ______.
  186. Round to nearest ten:
    For the above graph, the equilibrium quantity is ____.
  187. The idea of ________ self interest was first introduced by the father of modern economics (Adam Smith) in his book The Wealth of Nations. Smith wrote that producers (and consumers) of goods and services that act in their own self interest will actually improve the public welfare or public interest. This idea is closely tied to the "invisible hand" theory.
  188. The main examples of _________ payments are: Medicaid, Medicare, Social Security, food stamps, housing assistance, and welfare
  189. _________ opportunity cost is the amount of another product you must give up producing to one more unit of product.
  190. _______ goods, also known as snob goods, are goods that are purchased to demonstrate wealth. As the price of these goods rises, the quantity demanded increases.

    Example: High end wines & luxury cars
  191. If one worker can produce 15 units of output, two workers can produce 35 units of output, three workers can produce 40 unit of output, and four workers can produce 44 unit of output, when do diminishing returns begin?
    -When the firm hires the second worker
    -When the firm hires the fourth worker
    -When the firm hires the third worker
    -Diminishing returns do not set in
  192. In a(n) ________ economy, the central government dictates production and consumption.
  193. Opportunity costs can be found by adding explicit costs and _________ costs.
  194. A ________ monopoly, which normally refers to utility companies, is a monopoly that has such a high cost of entry that normally, two competing firms could not make money.
  195. If the firm in the table above produces 5 units of output, the Average Fixed Cost is $_____.
  196. The money one pays to use someone's land is known as _____.
  197. __________ is the social science that examines the allocation of resources and how those resources can be used to their fullest potential.
  198. If demand increases, the equilibrium price and quantity produced will __________.
  199. Governments can intervene in which of the following ways?
    (Check ALL that apply)
    -Putting a price ceiling in place
    -Preventing a merger
    -Putting a price floor in place
    -Break up firms
    -Discourage through taxation
  200. If a cartel is successful with increasing the price above marginal cost, individual members of the cartel will have an incentive to cheat by __________ output.
  201. __________ Profits = Total Revenue - Explicit Costs
  202. The minimum point on the ___ curve is the short-run shutdown price.
  203. If an effective _________ wage (above the market equilibrium point) is established, the result is normally higher unemployment.
  204. Which of the following choices does the green line (C) represent?
    -Average Variable Cost (AVC)
    -Marginal Cost (MC)
    -Average Total Cost (ATC)
    -Average Fixed Cost (AFC)
  205. When a society produces on the Production Possibility Curve, all available resources have been __________.
  206. A market that has many firms providing many buyers with the same product is known as a ________ competition.
  207. Game ______ is a mathematical analysis of the strategic moves and counter-moves that occur in an oligopoly market.
  208. Round to nearest dollar:
    For the above graph, the equilibrium price is $___.
  209. __________, which is healthcare provided by the Federal government, provides healthcare for the elderly and disabled. This is a Prospective Payment System (PPS).
  210. The ________ slope of the ATC curve represents economies of scale.
  211. A ____________ tax, which is also called a "flat tax," has no effect (negative or positive) on income inequality.
  212. __________ economics, which is based on the way someone believes "things ought to be," is based on theories or opinions rather than facts.

    Example: We should decrease sales tax to increase the disposable income of the city's residents.
  213. A firm should continue to spend money on wages, which are also called marginal ____________, until MRP (Marginal Revenue Product) = W (Wages).
  214. With imperfect competition, firms do not have to be as ____________ to survive.
  215. Horizontal price _______, which is a per se violation of the Sherman Act (1890), occurs when two or more sellers establish a price for a product (instead of letting the free market determine the price).
  216. If consumers' income is __________, the demand for an inferior product will rise.
  217. A ____________ loss is when the price is increased above market level and results in a loss of both consumer surplus and producer surplus.
  218. The blue shaded region of the graph above represents _________ surplus.
  219. An _________ shift of the PPC (Production possibilities Curve) indicates economic growth.
  220. ____ ______, who is considered the father of modern economics, wrote the book The Wealth of Nations.
  221. If an increase in the price of gasoline causes the demand curve for tires to shift _____, one can conclude that automobiles and gasoline are complementary products.
  222. Even though a union can often negotiate higher wages for workers, higher wages cause the demand for labor to _________.
  1. a Horizontal
  2. b Inefficient
  3. c Elastic
  4. d
  5. e Land
  6. f Unions
  7. g Economy
  8. h
    Average Fixed Costs (AFC)
  9. i Minimum
  10. j Perfectly
  11. k FTC
  12. l Maker
  13. m Supply Surplus
  14. n Interlocking
  15. o Unit
  16. p When the firm hires the third worker
  17. q Short
  18. r Difficult
  19. s Positive
  20. t Complementary
  21. u Price
  22. v Fixed
  23. w AFC
  24. x
  25. y Negative
  26. z
    Price 3
  27. aa False
  28. ab House
  29. ac Nash
  30. ad Opportunity
  31. ae Normal
  32. af
  33. ag Invested money not earning interest, Owner earning a smaller salary than they would have earned at another job
  34. ah Inelastic
  35. ai Increase
  36. aj Reason
  37. ak
  38. al True
  39. am 100
  40. an Local
  41. ao Putting a price ceiling in place, Preventing a merger, Putting a price floor in place, Break up firms, Discourage through taxation
  42. ap Externality
  43. aq Microeconomics
  44. ar Reservation
  45. as Taker
  46. at Decrease
  47. au
  48. av Perfect Competition
  49. aw
    P2, Q2
  50. ax Inside
  51. ay Public
  52. az Quantity
  53. ba Demand
  54. bb
  55. bc Interdependence
  56. bd Medicare
  57. be Superior
  58. bf Left
  59. bg Increased
  60. bh Invisible Hand
  61. bi Marginal
  62. bj Hazard
  63. bk Total
  64. bl
  65. bm Profit
  66. bn Barriers
  67. bo Legal
  68. bp Supply
  69. bq
  70. br OPEC
  71. bs Barter
  72. bt Implicit
  73. bu Rational
  74. bv
    Price 2
  75. bw $.22
  76. bx
    Surplus, 110, and down
  77. by Progressive
  78. bz
    Marginal Cost (MC)
  79. ca
  80. cb Taxation
  81. cc Utility
  82. cd Accounting
  83. ce Economics
  84. cf
  85. cg
  86. ch Decreased
  87. ci Perfect
  88. cj Elasticity
  89. ck Oligopoly
  90. cl Producer Surplus of $600
  91. cm Technology
  92. cn Schedule
  93. co Shortage
  94. cp Adam Smith
  95. cq Outward
  96. cr Private
  97. cs Transfer
  98. ct Giffen
  99. cu
  100. cv Social Security
  101. cw Average
  102. cx Long
  103. cy Lower
  104. cz
  105. da Interdependent
  106. db
  107. dc Equilibrium
  108. dd Free
  109. de Normative
  110. df Lowest
  111. dg
  112. dh
  113. di Monopolistic
  114. dj Down
  115. dk $600
  116. dl
  117. dm Dishwashers to decrease
  118. dn Clayton
  119. do Substitution
  120. dp Veblen
  121. dq
    TC = $525, AVC = $15
  122. dr 55
  123. ds Decreases
  124. dt
    Price 3 or Price 4
  125. du
  126. dv 10,000
  127. dw
  128. dx Capacity
  129. dy Per Se
  130. dz Justice
  131. ea Discrimination
  132. eb Positional
  133. ec
  134. ed Inequality
  135. ee Monopolistic Competition, Perfect Competition
  136. ef Curve
  137. eg Scarcity
  138. eh Equal
  139. ei Cartel
  140. ej Labor
  141. ek Derived
  142. el Kinked
  143. em Theory
  144. en 7.00
  145. eo Substitute
  146. ep
  147. eq Inferior
  148. er Monopoly
  149. es Expensive
  150. et Less
  151. eu Capital
  152. ev Resources
  153. ew Expenditure
  154. ex
  155. ey
    Average Variable Cost (AVC)
  156. ez Regressive
  157. fa Influence
  158. fb Competition
  159. fc Diminishing
  160. fd Relative
  161. fe Combinations
  162. ff Fixing
  163. fg Same
  164. fh Branding
  165. fi
  166. fj
  167. fk Imperfect
  168. fl Diseconomy
  169. fm Right
  170. fn Natural
  171. fo Downward
  172. fp Sherman
  173. fq Command
  174. fr Firm
  175. fs Deadweight
  176. ft Prospective
  177. fu Rent
  178. fv 15
  179. fw Macroeconomics
  180. fx Mixed
  181. fy MC
  182. fz Economic
  183. ga Efficient
  184. gb Higher
  185. gc Collective
  186. gd ATC
  187. ge
    Average Total Cost (ATC)
  188. gf Proportional
  189. gg Vertical
  190. gh Firm doubles its input and triples output
  191. gi
  192. gj Losing
  193. gk
  194. gl Younger
  195. gm Trade
  196. gn
    Do Nothing
  197. go
    17 units
  198. gp Income
  199. gq Zero
  200. gr Entrant
  201. gs Antitrust
  202. gt
  203. gu National
  204. gv Luxury
  205. gw Differentiation
  206. gx Boycotts
  207. gy Quotas
  208. gz negative
  209. ha Employed
  210. hb Rival, Excludable Good
  211. hc Increasing
  212. hd
  213. he Small
  214. hf Producer
  215. hg Division
  216. hh Product
  217. hi 10
  218. hj Floor
  219. hk Non-Rival, Excludable Good
  220. hl Surplus
  221. hm Greater
  222. hn