For economists, the word "utility" means:
A. versatility and flexibility.
C. pleasure or satisfaction.
In economics, the pleasure, happiness, or satisfaction received from a product is called:
The price elasticity of demand coefficient measures:
A. buyer responsiveness to price changes.
B. the extent to which a demand curve shifts as incomes change.
C. the slope of the demand curve.
D. how far business executives can stretch
Which of the following is a distinguishing feature of a command system?
A. private ownership of all capital.
B. central planning.
C. heavy reliance on markets.
D. wide-spread dispersion of economic power.
Which of the following is a
Market failure is said to occur whenever:
A. private markets do not allocate resources in the most economically desirable way.
B. prices rise.
C. some consumers who want a good do not obtain it because the price is higher than they are
A. reflects upsloping demand and downsloping supply curves.
B. entails the exchange of goods, but not services.
C. is an institution that brings together buyers and sellers.
D. always requires face-to-face contact between buye
All of the following can file antitrust charges under the Sherman Act except:
A. the U.S. Justice Department.
B. state attorney generals.
C. injured private parties.
D. the Federal Energy Regulatory Commission.
Movie producers A, B,
As of 2010, the world's population is approximately:
A. 6.8 billion.
B. 5.2 billion.
C. 10.8 billion.
D. 1.2 trillion.
Relative to 1800, the living standard of the average person today in the U.S. is about _ times
Economic cost can best be defined as:
A. any contractual obligation that results in a flow of money expenditures from an enterprise to resource
B. any contractual obligation to labor or material suppliers.
C. payments that mu
The demand for agricultural products is:
A. relatively elastic with respect to price.
B. relatively inelastic with respect to price.
C. relatively elastic with respect to income.
D. downsloping to the individual farmer, but perfectly el
The utility of a good or service:
A. is synonymous with usefulness.
B. is the satisfaction or pleasure one gets from consuming it.
C. is easy to quantify.
D. rarely varies from person to person.
Marginal utility can be:
Proprietary income refers to:
A. revenue flowing to the government from taxes.
B. money borrowed by the government to finance its operations.
C. revenue generated by government-run businesses.
D. transfer payments from the government to
Economists would describe the U.S. automobile industry as:
A. purely competitive.
B. an oligopoly.
C. monopolistically competitive.
D. a pure monopoly.
In which of the following market structures is there clear-cut mutual interdepend
Real wages in the United States in the long run:
A. show no discernible relationship to output per worker.
B. have increased at about the same rate as increases in output per worker.
C. have increased slower than increases in output per
Pure monopoly refers to:
A. any market in which the demand curve to the firm is downsloping.
B. a standardized product being produced by many firms.
C. a single firm producing a product for which there are no close substitutes.
D. a lar
In 2008, the average income for households in the United States was about:
In the quintile distribution of income, the term "quintile" represents:
A. 5 percent of the income receivers.
Where there is asymmetric information between buyers and sellers.
A. product shortages will occur at the equilibrium price.
B. product surpluses will occur at the equilibrium price.
C. markets can produce inefficient outcomes.
Resource pricing is important because:
A. resource prices are a major determinant of money incomes.
B. resource prices allocate scarce resources among alternative uses.
C. resource prices, along with resource productivity, are important
Economic or pure rent is:
A. a payment made for the use of housing, factory buildings, or capital goods.
B. a payment for resources used in the production of "free goods."
C. a payment for the use of those resources whose supply is perf
Broadly defined, technological advance:
A. can occur in the short run, long run, or very long run.
B. comprises new and improved goods and services and new and improved ways of producing or
C. includes invention, but
Which of the following distinguishes the short run from the long run in pure competition?
A. Firms can enter and exit the market in the long run, but not in the short run.
B. Firms attempt to maximize profits in the long run, but not in