[{"id":213359,"question":"A situation in which firms choose their best strategy given the strategies chosen by the other firms in the market is called.","choices":[{"text":"a competitive equilibrium","value":"A"},{"text":"An open market solution","value":"B"},{"text":"The Nash equilibrium","value":"C"},{"text":"The cartel equilibrium","value":"D"},{"value":"E"}],"correctAnswer":3},{"id":213358,"question":"Which of the following is a characteristics of monopolistic competition.","choices":[{"text":"One seller serving the entire market","value":"A"},{"text":"When each firm sells an identical product","value":"B"},{"text":"When firms do not compete on a product's quality price and marketing.","value":"C"},{"text":"When firms are free to enter and exit the market","value":"D"},{"value":"E"}],"correctAnswer":4},{"id":213357,"question":"When Daimler Benz maker of the Mercedes bought Chrysler the merger was","choices":[{"text":"Horizontal","value":"A"},{"text":"Vertical","value":"B"},{"text":"Conglomerate","value":"C"},{"text":"None of these","value":"D"},{"value":"E"}],"correctAnswer":1},{"id":213356,"question":"Oligopoly is a market structure in which","choices":[{"text":"Many firms each produce a slightly differentiated product","value":"A"},{"text":"One firm produces as unique product","value":"B"},{"text":"A small number of firms compete","value":"C"},{"text":"Many firms produce an identical product","value":"D"},{"value":"E"}],"correctAnswer":3},{"id":213355,"question":"In a typical cartel agreement the cartel maximizes profit when it.","choices":[{"text":"Behaves like a monopoly","value":"A"},{"text":"Behaves like a perfectly competitive firm","value":"B"},{"text":"Behaves like a duopoly","value":"C"},{"text":"Is flexible in enforcing production targets","value":"D"},{"value":"E"}],"correctAnswer":1},{"id":213354,"question":"Firms entering a perfectly competitive market will cause the price of the product to","choices":[{"text":"Decrease","value":"A"},{"text":"Increase","value":"B"},{"text":"Remain constant","value":"C"},{"text":"Respond more to consumer demand than supply","value":"D"},{"value":"E"}],"correctAnswer":1},{"id":213353,"question":"In contract to perfectly competitive markets monopolists","choices":[{"text":"Do no have to worry about market demand","value":"A"},{"text":"Sell only if demand is inelastic","value":"B"},{"text":"Can never incur an economic loss","value":"C"},{"text":"Can earn an economic profit indefinitely","value":"D"},{"value":"E"}],"correctAnswer":4},{"id":213352,"question":"If a good has a lot of substitutes, then its demand is.","choices":[{"text":"Elastic","value":"A"},{"text":"Inelastic","value":"B"},{"text":"Unit elastic","value":"C"},{"text":"Elastic or inelastic depending on whether the price is increasing or decreasing","value":"D"},{"value":"E"}],"correctAnswer":1},{"id":213351,"question":"In Production of goods and services tradeoffs exist becasue.","choices":[{"text":"Buyers and sellers often negotiate prices","value":"A"},{"text":"Society has only a limited amount of productive resources","value":"B"},{"text":"Not all production is efficient","value":"C"},{"text":"Human wants and needs are limited at a particular point in time","value":"D"},{"value":"E"}],"correctAnswer":2},{"id":213350,"question":"Firms in monopolistic competition compete on","choices":[{"text":"Price","value":"A"},{"text":"Quality","value":"B"},{"text":"Advertising","value":"C"},{"text":"All of the above are correct","value":"D"},{"value":"E"}],"correctAnswer":4},{"id":213349,"question":"The exit of firms out of a competitive market causes the supply curve to.","choices":[{"text":"Shift leftward","value":"A"},{"text":"shift rights ward","value":"B"},{"text":"None of the above for the exit of firms supply curve","value":"C"},{"text":"shift either left or right depending on the number of firms leaving the market","value":"D"},{"value":"E"}],"correctAnswer":1},{"id":213348,"question":"The price of salsa rises, How does the increase in the price of salsa affect the supply of salsa.","choices":[{"text":"The supply of salsa increases","value":"A"},{"text":"The supply of salsa decreases","value":"B"},{"text":"There is no change to either the supply of salsa or the quantity supplied of salsa","value":"C"},{"text":"There is no change to the supply of salsa but the quantity supplied of salsa increases","value":"D"},{"value":"E"}],"correctAnswer":4},{"id":213347,"question":"When oligopolistic firms interacting with one another each choose their best strategy given the strategies chosen by other firm in the market we have","choices":[{"text":"A cartel","value":"A"},{"text":"The perfect competitive outcome","value":"B"},{"text":"The Nash equilibrium","value":"C"},{"text":"Monopolistic competiton","value":"D"},{"value":"E"}],"correctAnswer":3},{"id":213346,"question":"When oligopolistic firms interacting with one another each choose their best strategy given the strategies chosen by other firms in the market we have.","choices":[{"text":"A cartel","value":"A"},{"text":"The perfect competitive outcome","value":"B"},{"text":"The Nash equilibrium","value":"C"},{"text":"Monopolistic competition","value":"D"},{"value":"E"}],"correctAnswer":3},{"id":213345,"question":"If there are 50 firms in a industry each selling 2% of the total sales the concentration ratio is.","choices":[{"text":"50%","value":"A"},{"text":"2%","value":"B"},{"text":"8%","value":"C"},{"text":"100%","value":"D"},{"value":"E"}],"correctAnswer":3},{"id":213344,"question":"In the long run a profit maximizing firm will choose to exit a market when","choices":[{"text":"Fixed costs exceed total costs","value":"A"},{"text":"Total revenue from production is less than total costs","value":"B"},{"text":"Average fixed cost is rising.","value":"C"},{"text":"Marginal cost exceeds marginal revenue at the current level of production.","value":"D"},{"value":"E"}],"correctAnswer":2},{"id":213343,"question":"Economic growth is shown on the production possibility frontier as.","choices":[{"text":"The curvature of the PPF","value":"A"},{"text":"An inward shift in the PPF","value":"B"},{"text":"An outward shifts in the PPF","value":"C"},{"text":"A movement from one point on the PPF to another","value":"D"},{"value":"E"}],"correctAnswer":3},{"id":213342,"question":"Holding all other things constant a higher price for ski lift tickets would.","choices":[{"text":"Increase the number of skiers","value":"A"},{"text":"Increase the price of skis","value":"B"},{"text":"Decrease the number of skis sold","value":"C"},{"text":"Decrease the demand for other winter recreational activities","value":"D"},{"value":"E"}],"correctAnswer":3},{"id":213341,"question":"A monopoly market.","choices":[{"text":"Generally falls to maximize total economic well being.","value":"A"},{"text":"Always maximizes total economic well being.","value":"B"},{"text":"always minimizes consumers surplus","value":"C"},{"text":"Generally falls to maximum produce surplus","value":"D"},{"value":"E"}],"correctAnswer":1},{"id":213340,"question":"In a perfectly competitive market if firms are earning an economic profit the economic profit.","choices":[{"text":"Attracts entry by more firms, which lowers the market price","value":"A"},{"text":"Can be earned both in the short run and long run","value":"B"},{"text":"Is less than the normal profit","value":"C"},{"text":"Leads to a decreases in market demand","value":"D"},{"value":"E"}],"correctAnswer":1},{"id":213339,"question":"If a monopolist faces a downward sloping market demand curve its.","choices":[{"text":"Average revenue is always less than marginal revenue","value":"A"},{"text":"Marginal revenue is greeter than the price of the units it sells.","value":"B"},{"text":"Average revenue is less than the price of its product.","value":"C"},{"text":"Marginal revenue is always less than the price of the units it sells","value":"D"},{"value":"E"}],"correctAnswer":4},{"id":213338,"question":"When a tax is levied on a good.","choices":[{"text":"The market price falls because demand declines.","value":"A"},{"text":"The market price falls because supply falls.","value":"B"},{"text":"A wedge is placed between the price buyers pay and the price sellers receive","value":"C"},{"text":"The market price rises because demand falls.","value":"D"},{"value":"E"}],"correctAnswer":3},{"id":213337,"question":"An increase in price causes an increase in total revenue when.","choices":[{"text":"Demand is elastic","value":"A"},{"text":"Demand is inelastic","value":"B"},{"text":"Demand is unit elastic","value":"C"},{"text":"All of the above are possible","value":"D"},{"value":"E"}],"correctAnswer":2},{"id":213336,"question":"Ti access internet services consumers must use a computer if computer prices fall, what is the effect on the demand for internet services.","choices":[{"text":"The demand for internet services increases.","value":"A"},{"text":"The demand for internet services decreases","value":"B"},{"text":"The demand for internet services does not change","value":"C"},{"text":"The demand for internet services could increase, decrese, or stay the same depending on other factors.","value":"D"},{"value":"E"}],"correctAnswer":1},{"id":213335,"question":"A drop in the price of compact disc shifts the demand curve for prerecord tapes leftward from that you know that compact discs and precorded tapes are.","choices":[{"text":"Inferior goods","value":"A"},{"text":"Substitutes","value":"B"},{"text":"Complements","value":"C"},{"text":"Normal goods","value":"D"},{"value":"E"}],"correctAnswer":2},{"id":213334,"question":"A firm that is a price taker faces a perfectly","choices":[{"text":"Elastic supply curve","value":"A"},{"text":"Inelastic demand curve","value":"B"},{"text":"Elastic demand curve","value":"C"},{"text":"In elastic supply curve","value":"D"},{"value":"E"}],"correctAnswer":3},{"id":213333,"question":"The long run is a time period that is.","choices":[{"text":"Five years or longer","value":"A"},{"text":"Long enough to change the level of labor hired","value":"B"},{"text":"Long enough to change the size of the firm's plant","value":"C"},{"text":"Ten years or longer","value":"D"},{"value":"E"}],"correctAnswer":3},{"id":213332,"question":"Which of the following correct about firms in an oligopoly.","choices":[{"text":"Each firm has complete control over its own selling price","value":"A"},{"text":"All firms independently charge monopoly prices","value":"B"},{"text":"No one firm controls price but each has an influence on the price","value":"C"},{"text":"There is no competition in oligopoly industries","value":"D"},{"value":"E"}],"correctAnswer":3},{"id":213331,"question":"If an increase in the price of gasoline increases the demand for gas hybrid cars, then","choices":[{"text":"Hybrid cars are an inferior good","value":"A"},{"text":"Gasoline and hybrid cars are complements in consumption","value":"B"},{"text":"Gasoline is an inferior good","value":"C"},{"text":"Gasoline and hybrid cars are substitutes in consumption","value":"D"},{"value":"E"}],"correctAnswer":4},{"id":213330,"question":"Marginal cost is the change is cost the result from a one unit increase in.","choices":[{"text":"Price","value":"A"},{"text":"Cost","value":"B"},{"text":"Output","value":"C"},{"text":"Revenue","value":"D"},{"value":"E"}],"correctAnswer":3}]