Podcast
Questions and Answers
What concept refers to the responsiveness of quantity demanded to a change in price?
What concept refers to the responsiveness of quantity demanded to a change in price?
- Price elasticity of demand (correct)
- Coase theorem
- Returns to scale
- Utility maximization
In economics, what term is used to describe goods where an increase in the price of one good leads to an increase in the demand for another good?
In economics, what term is used to describe goods where an increase in the price of one good leads to an increase in the demand for another good?
- Normal goods
- Complements (correct)
- Inferior goods
- Substitutes
What theory suggests that in the presence of externalities, bargaining between parties can lead to an efficient outcome without government intervention?
What theory suggests that in the presence of externalities, bargaining between parties can lead to an efficient outcome without government intervention?
- Tragedy of the Commons
- The Coase Theorem (correct)
- Midpoint Formula
- Utility maximization
Which term describes a situation where individuals have an incentive to let others bear the cost of providing a public good?
Which term describes a situation where individuals have an incentive to let others bear the cost of providing a public good?
What economic concept refers to the additional output produced by using one more unit of a specific input, while holding all other inputs constant?
What economic concept refers to the additional output produced by using one more unit of a specific input, while holding all other inputs constant?
Which concept in economics refers to the situation where individuals tend to over-consume a good when it is free, leading to inefficiency?
Which concept in economics refers to the situation where individuals tend to over-consume a good when it is free, leading to inefficiency?
What term is used to describe a good that is nonexcludable and nonrival, leading to challenges in pricing and access control?
What term is used to describe a good that is nonexcludable and nonrival, leading to challenges in pricing and access control?
When total revenue remains constant as price changes, what type of price elasticity of demand is being exhibited?
When total revenue remains constant as price changes, what type of price elasticity of demand is being exhibited?
What economic concept refers to the additional cost incurred for producing one more unit of a good or service?
What economic concept refers to the additional cost incurred for producing one more unit of a good or service?
In economics, which term is used to describe the situation when a particular input is increased while other inputs are held constant, resulting in decreasing additional output?
In economics, which term is used to describe the situation when a particular input is increased while other inputs are held constant, resulting in decreasing additional output?
