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Question 1CorrectMark 1.00 out of 1.00Flag questionQuestion textPerfect 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.FeedbackThe correct answer is: is a theoretical extreme used for analysis.Question 2IncorrectMark 0.00 out of 1.00Flag questionQuestion textEconomic 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 3CorrectMark 1.00 out of 1.00Flag questionQuestion textAccording 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.FeedbackThe correct answer is: an increase in the domestic price level reduces net exports leading to a movement along the aggregate demand curve.Question 4CorrectMark 1.00 out of 1.00Flag questionQuestion textAn 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; actionsd. price increases; total revenue in the long run only; large but not small price changesFeedbackThe correct answer is: actions; rivals; reactionsQuestion 5CorrectMark 1.00 out of 1.00Flag questionQuestion textThe 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 Companyis producing a level of output at which:Select one:a. average total cost equals $10.