1) A firm that makes profit in addition to normal profit is making ? a. Economic profit b. Accounting profit c. Normal profit d. supernormal profit
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2) An upward shift in marginal cost _____ output and an upward shift in marginal revenue ______ output? a. reduces; reduces b. reduces; increases c. increases; increases d. increases; reduces
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3) Marginal revenue is the ________ when output is __________? a. Change in average revenue, increased b. Change in total revenue, increase by one unit c. change in average revenue, increased by one unit d. change in total revenue increased
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4) Firms are assumed to ________ costs and to ________ profits? a. incur, desire b. pay, make c. charge earns d. minimize, maximize
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5) The extra utility from consuming one more unit of a good is called ? a. Marginal utility b. Additional utility c. Surplus utility d. Bonus utility
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6) The opportunity cost of a student is____________? a. Course fees and rent b. A loan from the bank c. What the student could have earned in the best job available by not studying d. What the student will earn after graduation
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7) If your income doubles and the prices of the goods you buy double then your demand for these goods will likely? a. increase b. not change c. decrease d. shift
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8) A measurement showing how quantity demanded varies with income is the ? a. Price elasticity of demand b. Cross-price elasticity of demand c. budget elasticity of demand d. income elasticity of demand
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9) The price elasticity of demand measures ? a. The responsiveness of quantity demanded to a change in price b. How far a demand curve shifts c. a change in price d. a change in quantity demanded
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10) Increased level consumption ? a. shift aggregate supply to the right b. shift aggregate supply to the left c. shift aggregate demand to the right d. shift aggregate demand to the left
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