5 Written questions
5 Matching questions
- According to the law of diminishing marginal utility:
- TRUE/FALSE: According to the profit-maximization rule, a firm should produce at the rate of output where marginal revenue equals marginal cost.
- If the price of battery-powered flashlights falls and the demand for flashlight batteries rises, then flashlights and batteries are:
- It is impossible to:
- a Complements.
- b True
- c Avoid fixed costs in the short run.
- d Marginal utility of a good declines as more of it is consumed in a given time period
- e Are owned by one individual.
5 Multiple choice questions
- Short run.
- MPC = 1 - MPS
- The after-tax income of consumers
- The interest rate effect
5 True/False questions
Suppose during a year an economy produces $10 trillion of consumer goods, $4 trillion of investment goods, $6 trillion in government services, and has $4 trillion of exports and $5 trillion of imports. GDP would be: → $19 trillion.
Which of the following statements is true, assuming the same cost and demand conditions? → A monopoly produces less output than a competitive firm
The equilibrium price for a perfectly competitive firm always occurs: → At the intersection of market supply and market demand.
In a graph of the aggregate demand curve, a decrease in investment by businesses is represented by a: → Leftward shift of the curve
Which of the following is an example of labor as a factor of production? → The skills and abilities of workers.