If electricity is measured on the horizontal axis, and the price of electricity becomes more expensive beyond 500 kilowatts, we draw:
A. an indifference curve that becomes flatter at 500 kilowatts.
B. a budget constraint that is kinked at 500 kilowatts.
C. a budget constraint that becomes steeper at 500 kilowatts.
D. an Engle curve that becomes negatively-sloped at 500 kilowatts.
B. a budget constraint that is kinked at 500 kilowatts.
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In part, microeconomics is concerned with
A) how a business firm decides upon the amount it produces and the price it sets. B) changes in the economy's total output of goods and services over long periods of time. C) factors that explain changes in the unemployment rate over time. D) the Federal Reserve's policy decisions.
What would the Herfindahl-Hirschman Index equal for an industry consisting of 20 firms with each holding a 5 percent market share?
A. 20 B. 100 C. 500 D. 2,500
In a perfectly competitive market, the type of decision a firm has to make is different in the short run than in the long run. Which of the following is an example of a perfectly competitive firm's short-run decision?
A) the profit-maximizing level of output B) how much to spend on advertising and sales promotion C) what price to charge buyers for the product D) whether or not to enter or exit an industry E) whether or not to change its plant size
Refer to Figure 6-8. Identify the two goods which are substitutes
A) Good X and Good Z B) Good Y and Good Z C) Good X and Good Y D) It is not possible to distinguish any relationship among the goods.