1- Even though some countries sometimes have absolute advantage, they may not have
a comparative advantage. So, if they focus in the production of one good and make
trades, they will have more gain. Because of the exp
1- Im not sure, I have read the pages 138 until 140 at least four times, and I did not
understand well also the language may be confounding my mind. So in my view,
Its positive because the people who will by the goods, are the o
Chapter 6 and 7
1- Marginal analysis is the way how people, companies, government make decisions.
Interested in their beneficial.
2- Is efficient because the marginal benefit of the last good consumed is equal to
Chapter 10 & 11
1- Marginal utility is the change in total utility a person receives from consuming one
additional unit of a good or service.
Diminishing marginal utility is the difference of marginal utility for e
Chapter 12 Microeconomics
1- The important characteristics of the perfectly competitive market are that buyer and
sellers both are small relative to the market, all firms sell the same products, there is
no barriers to enter or
Chapter 3 and 4
1- Income effect is the change in price that affect the purchasing power of consumers
income. Its influenced by how much people can purchase in each dollar.
2- Substitutes are the goods and services that can be used for th
Economics Test unit 1
1.The goal of a business is to .
A) satisfy the customer
B) make money
C) maximize profits
D) expand market share
2.The goal of a business is measured by.
A) Return on investment
B) Profits in dollars
MicroEcon Test 2
C) increase the quantity demanded by about 25 percent.
D) increase the quantity demanded by about 250 percent.
The price elasticity of demand coefficient measures:
A) buyer responsiveness to price changes.
1. Laws and government actions designed to prevent monopoly and promote competition are the focus of:
C) Antitrust policy
2.The basic purpose of antitrust laws is to
B) Limit monopoly power in industry
3.Business combinations in the 1870s and 1880s that c
1. Refer to the above graph. What will shift D1 to D2?
A. An increase in the price of a substitute input (if the output effect > substitution effect)
B. An increase in the price of a substitute input (if the substitution effect > output effect)
C. A decre
Macro Ch 27-28-29 Practice Test 2
Refer to the above table. The marginal propensity to save is:
2. As incomes go up the:
B. APC tends to fall
3. The change in real GDP from an initial change in spending is positive when
B. The initial chang
1. Laws and government actions designed to prevent monopoly and promote competition are
the focus of:
A) Social regulation
B) Industrial regulation
C) Antitrust policy
D) Incomes policy
Micro Chapter 26 Practice Problems #1
1. The wage rate is:
A) the total revenue minus the total cost of the firm.
B) the marginal revenue minus the marginal cost of the firm.
C) the price paid per unit of capital goods.
D) the price paid per unit of labor