Graded Quiz ECON 1580 UNIT 6.docx - Question 1 Correct Mark...

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Question 1 Correct Mark 1.00 out of 1.00 Flag question Question text Perfect competition is important to study because it: Select one: a. is a theoretical extreme used for analysis. b. is a realistic model of a few key markets. c. is a realistic model of many different markets. d. avoids all real-world problems and complexities. Feedback The correct answer is: is a theoretical extreme used for analysis. Question 2 Incorrect Mark 0.00 out of 1.00 Flag question Question text Economic profits are guaranteed for: Select one: a. a monopoly, but not a perfectly competitive firm. b. a perfectly competitive firm, but not a monopoly. c. both a monopoly and a perfectly competitive firm. d. neither a monopoly nor a perfectly competitive firm. Feedback
The correct answer is: neither a monopoly nor a perfectly competitive firm. Question 3 Correct Mark 1.00 out of 1.00 Flag question Question text According to the international trade effect, holding everything else unchanged, Select one: a. an increase in net exports shifts the aggregate demand curve to the right. b. an increase in the domestic price level reduces net exports leading to a movement along the aggregate demand curve. c. an increase in the exchange rate shifts the aggregate demand curve to the right. d. an increase in the prices of foreign goods level reduces imports leading to a movement along the domestic economy's aggregate demand curve. Feedback The correct answer is: an increase in the domestic price level reduces net exports leading to a movement along the aggregate demand curve. Question 4 Correct Mark 1.00 out of 1.00 Flag question Question text An oligopoly knows that its _______ affect(s) its _______ and that the _______ of its rivals will affect it. Select one: a. actions; rivals; reactions b. price changes ; total revenue in a positive way; reactions
c. actions rarely; rivals; actions d. price increases; total revenue in the long run only; large but not small price changes Feedback The correct answer is: actions; rivals; reactions Question 5 Correct Mark 1.00 out of 1.00 Flag question Question text The XYZ Company is a profit-maximizing firm with a monopoly in the production of pennants. The firm sells its pennants for $10 each. We can conclude that the XYZ Company is producing a level of output at which: Select one: a. average total cost equals $10.

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