Questions from General Economics

Q: Which concept from Chapter 1 can be used to explain how it

Which concept from Chapter 1 can be used to explain how it is possible for it to be in the individual interest of each nation to engage in protectionist policies but for everyone to be worse off if th...

Q: An example of an externality that we see every day is

An example of an externality that we see every day is a) people paying high prices for gasoline. b) people enjoying their ability to drive to work. c) oil companies making record profits. d) the e...

Q: A monopolistic competitor’s brand identity is protected by a a)

A monopolistic competitor’s brand identity is protected by a a) trademark. b) patent. c) copyright. d) bond.

Q: Suppose a firm has $1,000,000 in fixed

Suppose a firm has $1,000,000 in fixed costs and variable costs equal to $100; for every unit they produce, a) their marginal costs are decreasing. b) their fixed costs are decreasing. c) their av...

Q: The underlying reason that there are unattainable points on a production possibilities

The underlying reason that there are unattainable points on a production possibilities frontier diagram is that there a) is government. b) are always choices that have to be made? c) is a scarcity of...

Q: The fact that the demand for eggs is inelastic should not surprise

The fact that the demand for eggs is inelastic should not surprise you because a) they are a very cheap food. b) the demand for nearly all food products are inelastic. c) the supply of eggs is inel...

Q: When the National Hockey League had its 2004–2005 work stoppage

When the National Hockey League had its 2004–2005 work stoppage, it was a) a player strike over salaries that were too low. b) a player strike over a limited ability to move to another team. c) an...

Q: The average total cost curve will be cut by the marginal cost

The average total cost curve will be cut by the marginal cost curve from below as long as a) fixed costs are rising. b) average costs are decreasing. c) marginal costs eventually increase. d) marg...

Q: Whether a firm stays in business or shuts down depends heavily on

Whether a firm stays in business or shuts down depends heavily on the concept of a) economic profit. b) actual profit. c) market share. d) concentration ratios.

Q: In early 2005, inflation increased unexpectedly due to an increase oil

In early 2005, inflation increased unexpectedly due to an increase oil prices. This helped a) borrowers. b) lenders. c) people on fixed incomes. d) workers.