2. Eco 101 Principles of Microeconomics

3. 100 200 400 300 400 Consumer Choice Production & Costs Market Structures Resource Markets 300 200 400 200 100 500 100

4. Row 1, Col 1 This measures the change in total utility from the consumption of one more unit. What is marginal utility?

5. 1,2 Economic profits are the difference between total revenue and these types of costs. What are total costs or explicit and implicit costs?

6. 1,3 In these two types of market structures, firms face barriers to entry. What are monopoly and oligopoly?

7. 1,4 Firms will hire labor until this is true. What is marginal revenue product = the wage?

8. 2,1 When consumption of a good rises, total and marginal utility exhibit these behaviors, respectively. What is rise and fall?

9. 2,2 Under the law of decreasing returns we expect this to happen eventually. What is marginal product to fall?

10. 2,3 Selling an identical product with many other firms means this with respect to pricing power. What is the firm is a price taker?

11. 2,4 Under this effect, a wage increase makes you work more, since leisure becomes more expensive. What is the substitution effect?

12. 3,1 Along the same indifference curve, total utility exhibits this property. What is stays constant or is the same at all points?

13. 3,2 A normal profit is another name for this. What is zero economic profit?

14. 3,3 Using this rule, firms choose their profit-maximizing output. What is setting marginal revenue = marginal cost?

15. 3,4 Government borrowing increases interest rates because is does this to the market for financial capital. What is increase demand?

16. 4,1 In the graph of indifference curves below, which points have the highest total utility ? What are points E and F?

17. 4,2 In the short-run, there are these two types of costs. What are fixed and variable costs?

18. 4,3 By holding back output in order to charge a higher price, monopolists create this loss in surplus. What is the deadweight loss?

19. 4,4 This is the difference between the compensation to a resource and the opportunity cost of that resource. What is economic rent?

20. 5,1 In consumer equilbrium, consumers choose a point on the highest indifference curve that also does this. What is stay on budget or touch the budget line?

21. 5,2 This exists in the long run when increases in production lower the average cost of production. What is economies of scale?

22. 5,3 With free entry and exit, firms in these two market structures can expect zero economic profit in the long run. What are perfect competition and monopolistic competition?

23. 5,4 Under this type of rent, differences in rent occur due to difference in resource quality. What is differential rent?