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Fall 2016-Exam 2: 10/16 Flashcards | StudBud

Explore/Fall 2016-Exam 2: 10/16

Fall 2016-Exam 2: 10/16

8 terms·StudBud Administration·128 plays

Economics

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Questions 8

Answers

1
What is the process that firms use to turn inputs into outputs?
factories
magic
sales
technology
2
How do you determine when goods are complements?
when cross-price elasticity is > 0
when cross-price elasticity is < 0
when income elasticity is > 0
when income elasticity is < 0
3
How do you determine when goods are inferior?
when income elasticity is < 0
when cross-price elasticity < 0
when income elasticity is > 0
when cross-price elasticity is > 0
4
T or F: Markets always provide the efficient amount of public goods
True
False
5
How do you know if a good is public?
if it is excludable and non-rival
if it is excludable and rival
if it is non-excludable and rival
if it is non-excludable and non-rival
6
T or F: The more substitutes there are, the more inelastic the demand is
FALSE
TRUE
7
What is the main determinant for supply elasticity?
price
quantity
efficiency
time
8
Which scenario below will raise total revenue?
with inelastic demand -> lower prices
with elastic demand -> raise prices
with elastic demand -> keep prices the same
with inelastic demand -> raise prices