University:
Texas Tech University
Course:
BECO 3310 | Applied Business Economics
Academic year:

2023
Views:

411

Pages:

2
Author:

blankness4itf

1. Cross-price elasticity of demand measures how: the price of one good changes in response to a change in the price of another good. 2. Beef is a normal good. You observe that both the equilibrium price and quantity of beef have fallen over time. Which of the following explanations would be most consistent with this observation? Answer: New medical evidence has been released that indicates a negative correlation between a person's beef consumption and life expectancy 3. Which of the statements about price discrimination is (are) false? Public utilities practice first degree price discrimination 4. A tax on gasoline is an incentive that encourages people to drive smaller more fuel-efficient cars. True 5. A rational decisionmaker takes an action if and only if the marginal cost exceeds the marginal benefit. False 6. A baker recently has come to expect higher prices for bread in the near future. we would expect the baker to supply less bread now than she was supplying previously. 7. Currently you purchase ten frozen pizza per month. You will graduate from college in December, and you will start a new job in January. You have no plans to purchase frozen pizzas in January. For you, frozen pizzas are An inferior good 8. T/F "Minimum wage laws result in unemployment" is a normative statement, while "the minimum wage should be higher" is a positive statement. Answer: False 9. A difference between explicit and implicit costs is that Explicit costs are input costs that require an outlay of money by the firm whereas implicit do not 10. According to the circular-flow diagram, if Christopher is the owner of a landscaping business and he just received $50 for mowing Mrs. Pendleton's lawn, Christopher acts as a firm who interacted in the markets for goods and services with Mrs. Pendleton. 11. In first-degree price discrimination, the monopolist charges each consumer the highest price that purchaser is willing to pay for each unit purchased (provided that this price exceeds the marginal cost of production). 12. Firms must prevent resale between segments using a variety of: Fences 13. What is the amount of tax per unit $4 14. The price ceiling shown in graph a is not binding (above equilibrium) 15. If households are buyers in the market represented by box C of this circular-flow diagram then, firms are sellers in markets represented by box C

Applied Business Economics - BECO Review Exam 1

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