Download Economic Questions

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1. Perfectly competitive firms are called price
takers. What does this mean? Why are they price
takers?
2. Most cases of price discrimination involve
services rather than goods. Can you offer an
explanation for this observation?
3. Discuss the types of barriers to entry, and
explain whether each type is likely to provide
long-term monopoly power. What are the
allocative and distributive differences between
monopoly and perfect competition? What causes
these differences?
4. How is monopolistic competition like
monopoly? How is it different?
5. Compare and contrast perfect competition and
oligopoly.
6. If work provides disutility, why do people ever engage in either market work or nonmarket work?
7. What can cause the demand for a resource to shift?
8. Why does the division of resource earnings into economic rent and opportunity costs depend on the resource owner’s elasticity of supply?
9. What does it mean to say that the demand for a resource is a
derived demand? Why does the supply curve of a resource slope upward?
10. What is the price of an hour of leisure? An hour of non-market work? What does it mean to say that leisure is a normal good? Why doesn’t the market supply curve for labor bend backward?
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