ECON 201 Exam 2 NDSU
upward sloping - Answer-the law of supply is illustrated by a supply curve that is
False - Answer-True or False
The law of diminishing returns is a short run concept because capital can be changed in the long run
law of diminishing returns - Answer-the principle that, at some point, adding more of a variable input,
such as labor, to the same amount of a fixed input, such as capital, will cause the marginal product of
the variable input to decline
True - Answer-True or False
The difference between the complete market supply function and single market supply function is the
use of the concept cereris paribus
Cereris paribus - Answer-a Latin phrase that means "all other things held constant"
True - Answer-True or False
In the long run, if a firm experienced increasing returns to scale it is possible to see an downward sloping
supply curve
True - Answer-True or False
An example of economics of scale is when firms merge, reducing their need for some employees
economics of scale - Answer-factors that cause a producer's average cost per unit to fall as output rises
, the demand curve has shifted to the right - Answer-An increase in demand means that
one study refers to the market overall, while the other refers to specific brands - Answer-One study list
airline travel as a relatively inelastic good while another study lists it as an elastic good. Most likely??
The supply curve will shift to the left - Answer-The market for newspapers changes due to a price
increase in ink. This changes cause the following??
Equilibrium price will rise - Answer-The market for newspapers changes due to a price increase in ink.
This changes cause the following??
Equilibrium quantity will fall - Answer-The market for newspapers changes due to a price increase in ink.
This changes cause the following??
neither curve shifts - Answer-The market for iPhone 7s changes due to a price decrease in iPhone 7s.
This change causes the following?
Equilibrium price will not change - Answer-The market for iPhone 7s changes due to a price decrease in
iPhone 7s. This change causes the following?
Equilibrium quantity will not change - Answer-The market for iPhone 7s changes due to a price decrease
in iPhone 7s. This change causes the following?
False - Answer-True or False
If the price of a good increase, quantity supplied would increase?
False - Answer-True or False
upward sloping - Answer-the law of supply is illustrated by a supply curve that is
False - Answer-True or False
The law of diminishing returns is a short run concept because capital can be changed in the long run
law of diminishing returns - Answer-the principle that, at some point, adding more of a variable input,
such as labor, to the same amount of a fixed input, such as capital, will cause the marginal product of
the variable input to decline
True - Answer-True or False
The difference between the complete market supply function and single market supply function is the
use of the concept cereris paribus
Cereris paribus - Answer-a Latin phrase that means "all other things held constant"
True - Answer-True or False
In the long run, if a firm experienced increasing returns to scale it is possible to see an downward sloping
supply curve
True - Answer-True or False
An example of economics of scale is when firms merge, reducing their need for some employees
economics of scale - Answer-factors that cause a producer's average cost per unit to fall as output rises
, the demand curve has shifted to the right - Answer-An increase in demand means that
one study refers to the market overall, while the other refers to specific brands - Answer-One study list
airline travel as a relatively inelastic good while another study lists it as an elastic good. Most likely??
The supply curve will shift to the left - Answer-The market for newspapers changes due to a price
increase in ink. This changes cause the following??
Equilibrium price will rise - Answer-The market for newspapers changes due to a price increase in ink.
This changes cause the following??
Equilibrium quantity will fall - Answer-The market for newspapers changes due to a price increase in ink.
This changes cause the following??
neither curve shifts - Answer-The market for iPhone 7s changes due to a price decrease in iPhone 7s.
This change causes the following?
Equilibrium price will not change - Answer-The market for iPhone 7s changes due to a price decrease in
iPhone 7s. This change causes the following?
Equilibrium quantity will not change - Answer-The market for iPhone 7s changes due to a price decrease
in iPhone 7s. This change causes the following?
False - Answer-True or False
If the price of a good increase, quantity supplied would increase?
False - Answer-True or False
