ECON Ch5-7

question

If initially, the market is in equilibrium, then the price ceiling _____ the quantity of gasoline supplied and ______ the quantity of gasoline demanded.

answer

Decreases; increases

question

If the price is set below the equilibrium price in market for gasoline, the quantity of gasoline sold is ____ than the equilibrium quantity and the price ceiling creates a _____. The max price that someone is willing to pay for the last gallon of gasoline available on a black market ______.

answer

less;shortage;increases

question

The opportunity cost of a good is equal to

answer

the price of the good plus the value of the time spent finding the good

question

When equilibrium is set above minimum wage rate

answer

unemployment increases

question

If Tom's total utility from watching one more minute of television increases but the increase for each additional minute is smaller than the previous minute, he has diminishing marginal utility.

answer

...

question

According to the principle of diminishing marginal utility, as an individual consumes more and more of a good or service, the total utility increases while the marginal utility decreases.

answer

...

question

Total utility is the benefit received from consuming an extra unit of a good.

answer

False, marginal benefit

question

A consumer will maximize utility when all income is spent and the marginal utility is equal for all goods.

answer

...

question

A firm's total cost in the short run is the sum of its fixed cost plus its variable cost plus its marginal cost.

answer

false. 1

question

The term "fixed cost" refers to the cost a firm incurs to produce a specific fixed quantity of output.

answer

False 2

question

In the short run, average fixed cost is constant as output increases.

answer

false 3

question

Marginal cost refers to the increase in cost attributable to hiring one more unit of labor, capital, or some other input.

answer

false 4

question

The vertical distance between the average variable cost curve and the average total cost curve equals average fixed cost.

answer

true 5

question

The marginal cost curve intersects the average fixed, average variable, and average total cost curves all at their minimum points.

answer

false 6

question

Over the range of output for which the average product of labor curve is negatively sloped, the average variable cost curve is positively sloped.

answer

true 7

question

In the long run, total fixed cost equals zero.

answer

true 8

question

A firm's minimum efficient scale is the largest quantity of output at which long-run average cost reaches its highest level.

answer

false 9

question

When a firm's long-run average cost is constant as output increases, the firm is experiencing constant returns to scale.

answer

true 10

question

A firm's long-run average cost curve is derived from a series of short-run average total cost curves.

answer

false or true idfk

1 of 19

question

If initially, the market is in equilibrium, then the price ceiling _____ the quantity of gasoline supplied and ______ the quantity of gasoline demanded.

answer

Decreases; increases

question

answer

less;shortage;increases

question

The opportunity cost of a good is equal to

answer

the price of the good plus the value of the time spent finding the good

question

When equilibrium is set above minimum wage rate

answer

unemployment increases

question

If Tom's total utility from watching one more minute of television increases but the increase for each additional minute is smaller than the previous minute, he has diminishing marginal utility.

answer

...

question

According to the principle of diminishing marginal utility, as an individual consumes more and more of a good or service, the total utility increases while the marginal utility decreases.

answer

...

question

Total utility is the benefit received from consuming an extra unit of a good.

answer

False, marginal benefit

question

A consumer will maximize utility when all income is spent and the marginal utility is equal for all goods.

answer

...

question

A firm's total cost in the short run is the sum of its fixed cost plus its variable cost plus its marginal cost.

answer

false. 1

question

The term "fixed cost" refers to the cost a firm incurs to produce a specific fixed quantity of output.

answer

False 2

question

In the short run, average fixed cost is constant as output increases.

answer

false 3

question

Marginal cost refers to the increase in cost attributable to hiring one more unit of labor, capital, or some other input.

answer

false 4

question

The vertical distance between the average variable cost curve and the average total cost curve equals average fixed cost.

answer

true 5

question

The marginal cost curve intersects the average fixed, average variable, and average total cost curves all at their minimum points.

answer

false 6

question

Over the range of output for which the average product of labor curve is negatively sloped, the average variable cost curve is positively sloped.

answer

true 7

question

In the long run, total fixed cost equals zero.

answer

true 8

question

A firm's minimum efficient scale is the largest quantity of output at which long-run average cost reaches its highest level.

answer

false 9

question

When a firm's long-run average cost is constant as output increases, the firm is experiencing constant returns to scale.

answer

true 10

question

A firm's long-run average cost curve is derived from a series of short-run average total cost curves.

answer

false or true idfk

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ECON Ch5-7

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