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Increase in the supply of gasoline
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When the price of oil declined significantly the price of gasoline also declines the latter occurs because of an
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There is a shortage of the product
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If the quantity supplied of a product is less than the quantity demanded then
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Increase in the price of lettuce and decrease in quantity purchased
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A headline reads storm destroys half of the lettuce crop this situation would lead to an
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Some consumers are willing to pay more than the equilibrium price but don't need to do so
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Consumer surplus arises in a market because
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When firms use resources without being compelled to pay for their full cost
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Negative externalities arise
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Private firms cannot stop consumers were unwilling to pay for such goods from benefiting from them
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The market system does not produce public goods because
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Marginal benefit equals marginal cost
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At the optimal quantity of a public good
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Demand and supply do not accurately reflect all the benefits and all the cost of production
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From the economic perspective market failures basically arise when
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Allocate too many resources to production of the product
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When the production of a product creates external cost greater than external benefits of market economy will
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A reduction in price results in a decrease in total revenue
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Demand is said to be in elastic when
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Price rises and demand is elastic
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In which of the following instances will total revenue decline
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The price of some other product
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Cross elasticity of demand measures how sensitive purchases of the specific product are to changes in
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Substitutes
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A remote island nation is discovered and on this island the cross elasticity of demand for coconut milk and fruit punch is 1.0 this indicates that these two goods are
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Changing total utility obtained by consuming one more unit of a good
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Marginal utility is the
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Summing the marginal utility is for each successive unit of the product that is consumed
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The total utility of a product is calculated by
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Goods and services Cary price tag
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Which is the dimension or Assumption of the marginal utility theory of consumer behavior
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People have stable preferences
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Which of the following assumptions is consistent with neoclassical economics
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Complete rationality
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Behavioral economics question the assumption of what in the neoclassical framework
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Mental shortcuts
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Heuristic 's are basically
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Confirmation bias
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The tendency to pay attention only to the information that agrees with one's preconception is known as
