Podcast
Questions and Answers
Which area of study in economics deals with aggregate economic quantities and is rooted in microeconomics?
Which area of study in economics deals with aggregate economic quantities and is rooted in microeconomics?
- Microeconomics
- Firm theory
- Macroeconomics (correct)
- Consumer theory
What does the theory of the consumer in microeconomics deal with?
What does the theory of the consumer in microeconomics deal with?
- Demand and supply model of the market
- Supply of goods and services by profit-maximizing firms
- Consumption by utility-maximizing individuals (correct)
- Elasticities, substitution and income effects, and normal and inferior goods
What does the theory of the firm in microeconomics deal with?
What does the theory of the firm in microeconomics deal with?
- Supply of goods and services by profit-maximizing firms (correct)
- Consumption by utility-maximizing individuals
- Elasticities, substitution and income effects, and normal and inferior goods
- Demand and supply model of the market
What is the most important variable that affects the quantity of a good that consumers are willing to buy?
What is the most important variable that affects the quantity of a good that consumers are willing to buy?
What is the fundamental model of the private-enterprise economy?
What is the fundamental model of the private-enterprise economy?
Which factor is likely to make the own-price elasticity of demand greater for a good?
Which factor is likely to make the own-price elasticity of demand greater for a good?
When faced with the same percentage increase in prices, consumers are more likely to cut back on which type of goods?
When faced with the same percentage increase in prices, consumers are more likely to cut back on which type of goods?
Which characteristic is likely to result in a less elastic demand for a good?
Which characteristic is likely to result in a less elastic demand for a good?
Which of the following is NOT mentioned as a factor that can affect the own-price elasticity of demand?
Which of the following is NOT mentioned as a factor that can affect the own-price elasticity of demand?
What is likely to be a complex result of various characteristics when it comes to elasticity?
What is likely to be a complex result of various characteristics when it comes to elasticity?
Which term in Equation 6 remains constant along the entire demand curve?
Which term in Equation 6 remains constant along the entire demand curve?
At what price is the elasticity of demand for our hypothetical example equal to -0.2?
At what price is the elasticity of demand for our hypothetical example equal to -0.2?
When is demand said to be unit elastic?
When is demand said to be unit elastic?
What is the interpretation of an elasticity coefficient of -1.28?
What is the interpretation of an elasticity coefficient of -1.28?
What is the quantity demanded when the price is €1.48 per liter in our hypothetical example?
What is the quantity demanded when the price is €1.48 per liter in our hypothetical example?
Which of the following is true about the demand function?
Which of the following is true about the demand function?
What does the negative sign on the coefficient of gasoline price in Equation 2 indicate?
What does the negative sign on the coefficient of gasoline price in Equation 2 indicate?
What is the dependent variable in Equation 2?
What is the dependent variable in Equation 2?
What is the inverse demand function?
What is the inverse demand function?
What does it mean for two goods to have a negative cross-price elasticity of demand?
What does it mean for two goods to have a negative cross-price elasticity of demand?
Which of the following is a drawback of using the coefficient on the price variable as a measure of sensitivity?
Which of the following is a drawback of using the coefficient on the price variable as a measure of sensitivity?
What is the formula for own-price elasticity of demand?
What is the formula for own-price elasticity of demand?
What does the slope of the demand curve represent?
What does the slope of the demand curve represent?
What is the interpretation of the demand curve in terms of quantity and price?
What is the interpretation of the demand curve in terms of quantity and price?
What does elasticity measure?
What does elasticity measure?
Which of the following is a characteristic that tends to be predictive of a good's elasticity of demand?
Which of the following is a characteristic that tends to be predictive of a good's elasticity of demand?
Which of the following is true about the demand curve facing a seller under conditions of perfect competition?
Which of the following is true about the demand curve facing a seller under conditions of perfect competition?
Which of the following is true about the long-run elasticity of demand for most goods?
Which of the following is true about the long-run elasticity of demand for most goods?
Which of the following is a characteristic that determines whether demand is highly elastic?
Which of the following is a characteristic that determines whether demand is highly elastic?
Which of the following goods is likely to have a less elastic demand?
Which of the following goods is likely to have a less elastic demand?
