5 Written Questions
5 Matching Questions
- According to Keynesian theory, the correct fiscal policy action to stimulate the economy would be to:
- An individual wheat farmer has no market power because:
- If Pepsi and Coke are the only two soft drink producers, they could be considered:
- TRUE/FALSE: For a monopoly, profits are maximized at the output level where price and marginal cost are equal.
- The law of diminishing returns indicates that the marginal physical product of a factor declines as more:
- a False
- b A duopoly.
- c Of the factor is used, holding other inputs constant.
- d Increase government expenditures to increase aggregate demand.
- e It must accept the equilibrium market price.
5 Multiple Choice Questions
- Always less than price, after the first unit.
- Frictional unemployment will always exist.
- Avoid fixed costs in the short run.
- The quantity demanded equals the quantity supplied.
- The cost of producing frozen yogurt decreases.
5 True/False Questions
If marginal cost equals price, then _____ is at a maximum. → The quantity demanded equals the quantity supplied.
According to the law of diminishing marginal utility: → Marginal utility of a good declines as more of it is consumed in a given time period
Which of the following statements is true, assuming the same cost and demand conditions? → Profit-maximization rule.
The law of demand states that: → Price and quantity demanded are inversely related.
According to the law of demand → Price and quantity demanded are inversely related.