5 Written questions
5 Matching questions
- Which of the following is necessary for an economy to self-adjust fairly quickly, according to classical economists?
- TRUE/FALSE: According to the profit-maximization rule, a firm should produce at the rate of output where marginal revenue equals marginal cost.
- The number and relative size of firms in an industry is the definition of:
- Which of the following is likely to cause an outward shift of the production possibilities curve?
- If demand is unitary elastic, then a price cut:
- a Market structure.
- b Flexible wages and prices
- c True
- d Investment in telecommunications networks.
- e Does not change total revenue.
5 Multiple choice questions
- Leftward shift of the curve
- Minimum average total cost; zero
- The source of the free-rider dilemma.
- The quantity demanded equals the quantity supplied.
- Government intervention should be used to correct business cycles.
5 True/False questions
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
A market shortage is: → Caused by a price ceiling.
People find it difficult to get along without necessities, therefore demand for necessities: → Maximizes total profit.
Which of the following is a constraint that motivates economic interactions? → Many firms produce identical or similar products.
TRUE/FALSE: When there are economies of scale, a firm can simply increase capital and unit costs will decline. → True