When people decorate the exteriors of their homes with colored lights, they create ________ for the motorists who pass by.
A) an external benefit
B) a competitive good
C) a public good
D) an excludable good
Ques. 2What will happen to the equilibrium price and equilibrium quantity of ice cream cones when consumers' incomes decrease?
A) If ice cream cones are a normal good, then the equilibrium price and quantity of ice cream cones will decrease.
B) If ice cream cones are a normal good, then the equilibrium price and equilibrium quantity of ice cream cones will increase.
C) If ice cream cones are an inferior good, then the equilibrium price for an ice cream cone will increase and the equilibrium quantity of ice cream cones will decrease.
D) If ice cream cones are an inferior good, then the equilibrium price and quantity of ice cream cones will decrease.
Ques. 3A product that is a close substitute but not a perfect substitute for the products of the other firms is called
A) a homogeneous product.
B) an efficient product.
C) a differentiated product.
D) an inelastic product.
Ques. 4Food is an example of a ________ good.
A) nonrival and nonexcludable
B) rival and excludable
C) nonrival and excludable
D) rival and nonexcludable
Ques. 5Which graph shows the impact of scientists developing a more powerful fertilizer?
A) Figure A
B) Figure B
C) Figure C
D) Figure D
Ques. 6The value of marginal product equals ________ multiplied by ________.
A) the good's market price; marginal cost
B) the good's market price; marginal product
C) marginal cost; marginal product
D) marginal revenue; total product
Ques. 7Tris owns the only auto repair shop on Lonely Island. Tris is a single-price monopoly, so Tris operates on the ________ part of the ________ curve.
A) elastic; supply
B) inelastic; supply
C) inelastic; demand
D) elastic; demand
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