Price takers Study guides, Class notes & Summaries

Relative Scarcity - Answer A situation where resources are limited compared to the demands placed upon them via needs and wants Needs - Answer The basic goods and services that are necessary for our survival Wants - Answer Goods and services that we desire to improve our satisfaction or quality of life, but are not necessary for our survival Resources - Answer The factors of production such as natural, labour and capital resources that are used to make goods and services ...

Leisure Tourists - Answer Tourists that visit for pleasure in their free time and engage in leisure-related activities, paid with their own economic resources. As they are on HOLIDAY. Leisure Tourists Examples - Answer Day trippers, Holiday takers, Short break & overnight visitors. Business Tourists - Answer High spending tourists that travel for attendance at conferences, sales trip & trade shows. They usually make extensive use of premium air fares and luxury hotel rooms. Bu...

CAPM Market Assumptions correct answers -All investors are price takers -All information relevant to security analysis is free and publicly available - All securities are publicly owned and traded - No taxes on investment returns -No transaction costs -Lending and borrowing at the same risk free rate are unlimited CAPM Investor Assumptions correct answers -Investors plan for the same (single-period) horizon -Investors are efficient users of analytical methods -> investors have homoge...

Pure monopoly refers to: Answers: A. any market in which the demand curve to the firm is downsloping. B. a standardized product being produced by many firms. C. a single firm producing a product for which there are no close substitutes. D. a large number of firms producing a differentiated product. - ANSWER C. a single firm producing a product for which there are no close substitutes. Which of the following is correct? A. Both purely competitive and monopolistic firms are "price tak...

ECON 203 EXAM 1 TAMU With 100% Correct Answers 2024/2025 What are 3 gains from society when countries decide to specialize? - answer-specialization and trade -more resources -Improvements in technology/productivity True or False: Every country have comparative advantage in something. - answerTrue What are 2 gains when two countries engage in specialization and trade? - answer-total production increases -new points reached on the PPF that were originally unattainable What are the 4 char...

ECON 203 EXAM 1 TAMU With 100% Correct Answers 2024/2025 What are 3 gains from society when countries decide to specialize? - answer-specialization and trade -more resources -Improvements in technology/productivity True or False: Every country have comparative advantage in something. - answerTrue What are 2 gains when two countries engage in specialization and trade? - answer-total production increases -new points reached on the PPF that were originally unattainable What are the 4 char...

Besides its utility, what else determines the value of a good by a consumer? - Answer-scarcity What is basic component of capitalism besides limited government, freedom of enterprise, and competition? - Answer-property rights When supply of good increases, what tends to decrease? - Answer-equilibrium Which economic system bases production of goods on customs and habits? - Answer-traditional Which economic system is regulated by the public sector? - Answer-command Which economic system is g...

Describe the PESTEL framework for evaluating the impact of external factors on the firm. correct answers Political: government pressures, subsidies + incentives, lobbying, differences in countries Economic: growth rates, interest rates, employment levels, currency exchange Sociocultural: norms, cultures, values, demographics, lifestyle changes Technological: innovation in products/processes, research + development Ecological: global warming, sustainability, pollution Legal: court system, le...

Perfect competition is characterized by all of the following except: A) a horizontal demand curve for individual sellers B) heavy advertising by individual sellers C) sellers are price takers D) homogeneous products correct answers B) heavy advertising by individual sellers Identify the current Fed Funds rate. A) .25 to .5 percent B) .75 to 1.0 percent C) 0 percent D) 3.5 percent correct answers A) .25 to .5 percent In response to the destructive bank panics of the Great Depression...

Relative Scarcity - Answer A situation where resources are limited compared to the demands placed upon them via needs and wants Needs - Answer The basic goods and services that are necessary for our survival Wants - Answer Goods and services that we desire to improve our satisfaction or quality of life, but are not necessary for our survival Resources - Answer The factors of production such as natural, labour and capital resources that are used to make goods and services ...