Q: econ: What is the name of the study of the national or international economy as a whole?
A: macroeconomics

Q: econ: What is the name of economics that studies the behavior of economic units (individuals, households, firms, etc.)?
A: microeconomics

Q: econ: What is the name of the total sum of money collected by taxes?
A: tax revenue

Q: econ: What are the axes of the demand curve?
A: price and quantity demanded

Q: econ: What is the name of all people aged ever sixteen and able to work?
A: labor force

Q: econ: What is the name of exchange of goods without the mediation of money?
A: barter

Q: econ: What are the axes of the supply curve?
A: price and quantity supplied

Q: econ: What is the importance of economies of scale with respect to debt capacity?
A: large companies have a greater debt capacity

Q: econ: What is the name of the ratio of the number of unemployed to the number of people in the labor force?
A: unemployment rate

Q: econ: Why does the growth of population distort the link between the GNP and welfare?
A: growth of population may be faster than the growth of GNP

Q: econ: What is the desired consumer expectation in reference to the future change in price?
A: increase (though the firm's policy may be to continually decrease prices)

Q: econ: What is the name of products that produce exactly the same utility for the same quantity?
A: perfect substitutes

Q: econ: What problem with distribution of income appears on a competitive market?
A: income is concentrated in the hands of few

Q: econ: What is the degree of product differentiation on a perfectly competitive market?
A: zero

Q: econ: When can companies actively act against profit increase?
A: - fear of antitrust action
A: - fear of trade union wage demands
A: - fear of attracting new entrants to the industry

Q: econ: What is the remedy for the double coincidence of wants in barter?
A: money

Q: econ: What is the importance of economies of scale with respect to periodic decline of demand?
A: large companies accommodate it more easily

Q: econ: What is a seller's market?
A: market with strong demand

Q: econ: What is the law of demand?
A: reducing price will increase the sales

Q: econ: What is the impact of advertising on market price?
A: increase

Q: econ: What is the value of marginal revenue for the product quantity that maximizes the revenue?
A: zero

Q: econ: What exemplary conditions might spark profits for a restaurant acc to friction and monopoly theories of profit?
A: good location

Q: econ: Is aircraft an example of business in which small-scale firms may have a cost advantage?
A: no

Q: econ: What is the importance of economies of scale with respect to technological innovation?
A: large companies accommodate its costs with greater ease

Q: econ: What is an indifference curve in utility analysis?
A: curve determined by the quantities of two (or more) products in combinations that produce the same total utility

Q: econ: What is the name of the cost involved in variable inputs involved in production?
A: variable cost

Q: econ: What is the name of the consumption rate beyond which consumers cannot derive any more satisfaction (e.g. 3 liter of milk per day)?
A: saturation rate

Q: econ: The options for a higher cost company in competition with a more cost-effective rival:
Q: - price war (big losses expected)
Q: - collusion (rather illegal)
Q: - ... (of the product or cost structure)
A: improvement

Q: econ: What is the name of products X and Y such that increasing purchases of X has no impact on the purchases of Y?
A: independent products

Q: econ: Why are products sold to the rich of very little price elasticity?
A: rich people are not sensitive to changes in price

Q: econ: What is a buyer's market?
A: market with strong supply

Q: econ: What is the name of increasing output in higher proportion than the increase in inputs (capital and labor)?
A: increasing returns to scale

Q: econ: Why a firm must use only the profit maximization criterion on a perfectly competitive market?
A: earning less than maximum means less than normal profit (i.e. firm's death)

Q: econ: What is the frequent alternative to profit maximization?
A: revenue maximization

Q: econ: What is the name of goods that are enjoyed by the consumers?
A: consumer goods

Q: econ: When do firms tend to maximize short-run profits (rather than profits)?
A: when they are under strong competitive pressure

Q: econ: Can total revenue be computed from the demand curve?
A: yes (TR=price*quantity)

Q: econ: Is baking an example of business in which small-scale firms may have a cost advantage?
A: yes

Q: econ: What is the name of the difference between total revenue and total cost?
A: profit

Q: econ: Is single concrete product business an example of business in which small-scale firms may have a cost advantage?
A: yes

Q: econ: Are raw material outlays considered fixed or variable cost?
A: variable

Q: econ: What are opportunity costs of an investment?
A: costs of not having invested in something else

Q: econ: ... is a series of activities by which resource inputs are transformed through a recipe and technological process into outputs of goods and services.
A: production

Q: econ: What is the name of products with zero cross-elasticity?
A: independent products

Q: econ: Is price war likely for oligopolistic companies with equal market share, equal cost and almost identical product?
A: no (both companies are expected in lose)

Q: econ: What is the name of costs that do not vary with output?
A: fixed costs

Q: econ: Is locomotives industry an example of oligopoly?
A: yes

Q: econ: What is the impact of competition on research and innovation?
A: reduced budgets

Q: econ: What is the impact of advertising on profitability?
A: (usually) increase

Q: econ: Is elasticity counted in percentage terms or in unit terms?
A: percentage (for the sake of comparison with other products)
