Help
Options
Didn't know it?
click below
click below
Knew it?
click below
click below
Don't Know
Remaining cards (0)
Know
retry
shuffle
restart
0:00
Embed Code - If you would like this activity on your web page, copy the script below and paste it into your web page.
Normal Size Small Size show me how
Normal Size Small Size show me how
Stack #2516948
| Question | Answer |
|---|---|
| Benchmarking means | copying from the best so as to become better. |
| Economics provides a theory to explain | how people make choices. |
| A decrease in the price of good Y will have what effect on the budget line on a normal X-Y graph? | Increase the vertical intercept |
| When the price of one good decreases, the associated income effect is represented by a move from one indifference curve to a | Higher indifference curve since real income is now higher |
| Indifference curves further from the origin imply | A higher level of satisfaction |
| The marginal rate of substitution (MRS) determines the rate at which a consumer is willing to substitute between two goods in order to achieve | The same level of satisfaction |
| Holding the mean value of a gamble constant, the larger the standard deviation, the | more risky the gamble will be |
| Economic Darwinism is seen when | competition weeds out ill-designed organizations that fail to adapt. |
| Marginal utility is the | additional utility obtained by consuming one additional unit of a good. |
| The substitution affect isolates the change in the consumption of a good caused by: | The change in the relative prices of two goods |
| Assume that the quantity of apples is measured on the horizontal axis and the quantity of oranges is measured on the vertical axis. If Andy likes both apples and oranges, then his Marginal Rate of Substitution along the indifference curve indicates | how many oranges he is willing to give up in order to obtain one more apple. |
| The manager of Viking Sports finds that the price elasticity of baseball bats is −0.77. He wants to hold a sale to get rid of his inventory. What will you advise him? | A price elasticity of −0.77 suggests that baseball bats face inelastic demand. Therefore, if you lower the price, total revenue will fall. So he should not hold a sale. Rather, he could increase the price and gain in revenue. |
| Suppose the demand for X is given by QXd = 100 - 2PX + 4PY + 10M + 2A, where PX represents the price of good X, PY is the price of good Y, M is income and A is the amount of advertising on good X. Good X is | A normal good |
| Graphically, an increase in the number of vegetarians will cause the demand curve for Tofu (a meat substitute) to | shift rightward |
| Demand shifters do not include the | change in supply |
| An inferior good is a good | That consumers purchase less of when their incomes are higher |
| As price raises, supply | remains the same |
| When quantity demanded exceeds quantity supplied | The price is below the equilibrium price |
| Suppose there is a simultaneous increase in demand and decrease in supply, what effect will this have on the equilibrium price? | It will rise |
| If there are few close substitutes for a good, demand tends to be relatively | Inelastic |
| Price elasticity of demand = - (Negative number) | elastic |
| If the demand for product A displays high and positive cross-price elasticity with respect to the price of product B, then | product A and B are substitutes |
Created by:
wonderfulgogogogirl