5 Written questions
5 Matching questions
- Obstacles that make it difficult or impossible for would-be producers to enter a market are known as:
- If supply is constant, a decrease in the demand for potato chips will cause:
- Which of the following is not an example of investment?
- Given that resources are scarce:
- Ceteris paribus, if Tamika pays off a loan at the bank then over time
- a A decrease in equilibrium price and a decrease in equilibrium quantity.
- b The money supply becomes smaller.
- c Opportunity costs are experienced whenever choices are made.
- d Barriers to entry.
- e A business owner uses his profits to play the lottery and wins.
5 Multiple choice questions
- Frictional unemployment will always exist.
- A shortage of college education opportunities in the state.
- Cyclical unemployment.
5 True/False questions
When producing jeans, which of the following is not a variable cost in the short run? → Rent for the factory
In long-run competitive market equilibrium, price equals _______ and economic profit is ______. → An oligopoly.
If demand is elastic, then: → Quantity demanded is very responsive to changes in price.
TRUE/FALSE: According to the profit-maximization rule, a firm should produce at the rate of output where marginal revenue equals marginal cost. → True
The goal of most business firms is to: → Maximize total profit.