Economics difficult ones

  1. In the following instances will total revenue decline?



    D. Price rises and demand is elastic.
  2. A given leftward shift in the supply curve of product x will increase equilibrium price to a greater extent the:



    A. More inelastic the demand for the product.
  3. Economic resources are also called:



    C. Factors of production
  4. A market demand is:



    D. A horizontal summation of individual demand curves.
  5. Which of the following best descrives the 'guiding function' of competitive prices?



    D. The market system can negotiate reallocations of resources that are appropriate to changes in consumer tastes, technology, and resource supplies.
  6. 'For whom is a given mix of goods and services to be produced? In other words, how is the product to be distributed among people when such commoditites and services are available?' In a market economy, this problem is primarily resolved in the:



    C. Private sector, through the earning and spending of income.
  7. If competitive industry Y is incurring substantial losses, we can expect that in the long term, output will:



    A. Diminish, product price will rise, and losses will tend to disappear.
  8. Economic profits are:



    D. Not an economic cost, because they need not be realised, in order for a business to acquire and retain entrepreneurial ability.
  9. A given leftward shift in the supply curve of product X will increase equilibrium price to a greater extent the:



    A. More inelastic the demand for the product.
  10. In which of the following instances will total revenue decline?



    C. Price rises and demand is elastic.
  11. Economic profits are calculated by subtracting:



    B. Explicit and implicit costs from total revenue.
  12. A law of diminishing returns indicates that:



    D. As extra units of a variable resource are added to a fixed resource, the extra or marginal product will decline beyond some point.
  13. Normal profit is:



    C. The return to the entrepreneur when economic profits are zero.
Author
Anonymous
ID
168492
Card Set
Economics difficult ones
Description
Economics Quiz Questions
Updated