Term
True or False?
Demand represents the maximum consumers are willing and able to pay for different quantities of a good |
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Definition
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Term
True or False?
If property rights exist and transaction costs are low private transactions are efficient. |
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Definition
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Term
True or False?
The efficient level of pollution in the environment is the level where the average cost of clean up equals the average benefit of clean up. |
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Definition
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Term
True or False?
The opportunity cost of going to college includes any salary salary given up to attend college |
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Definition
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Term
True or False?
Social cost include private costs |
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Definition
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Term
True or False?
The use of emission charges (a tax) force firms to internalize some external costs impacted the firms' production decisions |
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Definition
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Term
True or False?
Consumers' tastes and preferences determine the location of the supply curve |
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Definition
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Term
True or False?
Diminishing returns occur with each additional unit of a variable input when total output begins to decline |
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Definition
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Term
True or False?
Rent controls will lead to in an increase in the number of rental units available |
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Definition
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Term
True or False?
An increase in the wages of grape pickers will cause the supply of grapes to shift right |
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Definition
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Term
True or False?
A monopoly never makes a profit in the long run |
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Definition
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Term
True or False?
Firms always prefer to earn the highest possible revenue |
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Definition
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Term
| If an individual perfectly competitive firm raises its price above the market price it will: |
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Definition
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Term
| The goal of most business firms is to |
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Definition
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Term
| The law of diminishing returns helps to explain why |
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Definition
| marginal cost eventually increases in the short run |
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Term
| Which of the following has relative elastic demand? |
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Definition
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Term
| A public good is a good that |
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Definition
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Term
| What is the difference between the long run and the short run? |
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Definition
| Fixed costs exist in the short run or all costs are variable in the long run |
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Term
| What is the primary concept affecting all decisions? |
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Definition
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