Economic test bank

macroeconomics test bank

Polar Cases of Elasticity and Constant Elasticity 5. Perfect Competition 8.

Economics test bank chapter 3

More information about ethical issues for engineers can be obtained from provincial professional engineering organizations. There are no general answers to difficult moral questions. In doing so, you have to understand your final product and identify a market for that product. It is caused by a change in a determinant of demand other than the price of the good in question. Answer: A Diff: 2 Topic: Change in demand 11 All else constant, all of the following would cause the demand curve for a good to shift except: A a change in the cost of producing the good. Polar Cases of Elasticity and Constant Elasticity 5. C The number of buyers. An increase in the price of gym shoes will cause the demand for sweatshirts to decrease, i. If you are uncertain about values of some variables involved, you have to use principles of sensitivity analysis. Answer: The following three problems can be mentioned in this regard: i willingness to pay for a nonmarket good is very difficult to define; ii willingness to pay for non-market good is very subjective measure; ii it will require a lot of data and comprehensive statistical analysis to evaluate total willingness to pay for the bridge Diff: 3 Type: SA Page Ref: Topic: 1. Price would then rise, causing quantity demanded to decrease and quantity supplied to increase until a new equilibrium is reached. As a result, you will be able to evaluate your expected revenues. Based on this information we can conclude, with certainty, that in the market for used single-family homes equilibrium: A price will increase. A Quantity supplied would decrease, creating excess supply at the initial equilibrium price. B A zero inflation assumption is not realistic but it is better than assuming some uncertain inflation rate.

How does a change in each of the factors you have listed affect the supply curve? B Demand for CDs has increased, causing equilibrium price and quantity to increase. C equilibrium price to increase and equilibrium quantity to decrease. There are some costs associated with that opportunity, called opportunity costs.

economic test questions and answers

Answer: The following three problems can be mentioned in this regard: i willingness to pay for a nonmarket good is very difficult to define; ii willingness to pay for non-market good is very subjective measure; ii it will require a lot of data and comprehensive statistical analysis to evaluate total willingness to pay for the bridge Diff: 3 Type: SA Page Ref: Topic: 1.

B approximate. Answer: FALSE Diff: 2 Topic: Inferior goods and income changes 63 The market demand for a good is determined by horizontally summing the demand curves of individual consumers. Therefore, for example, a more expensive apartment closer to the University can be preferred to a cheaper one far away, based on transportation costs.

economic test questions and answers
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Test Bank for Economics for Managers 3rd Edition by Farnham by ebbob