eocn final 2

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The concept of opportunity cost would explain whether someone chooses to drive, take a cab, take a bus, or walk to school or work because someone with ___________.

a high wage is more likely to drive or take a cab to work because his time is worth more.
Does this imply that using a bus to get to the destination involves lower total costs than getting there by car? What if the bus doesn't take the fastest route from point A to point B?

The marginal cost of using a bus may be higher if it takes more time than by car.
In a perfectly competitive market, if one seller chooses to charge a price for its good that is slightly higher than the market price, then it will _________.

lose all or almost all of its customers.
In a perfectly competitive market, sellers _________ and buyers _________.

cannot charge more than the market price; cannot pay less than the market price.
Which of the following is NOT a direct determining factor of a consumer's purchase decisions?

Cost of factor inputs
In a perfectly competitive market, all consumers:

are price takers.
________ is the difference between the willingness to pay and the price paid for a good.

Consumer surplus
A good is said to have a relatively elastic demand if the value of price elasticity is:

greater than 1.
If a 1% change in the price of a good causes a 1% change in the quantity demanded, the good has an elasticity of demand:

equal to 1.
If there is an increase in the price of both tea and coffee, ________.

Sandra's expenditure on tea will increase and her expenditure on coffee will decrease
Which of the following best describes a good with perfectly elastic demand?

Even the smallest increase in the price of the good will cause consumers to stop consuming it completely.

Author

dwrght16

331068

Card Set

eocn final 2

Description

final

Updated

2017-05-03T03:54:28Z

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