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Pregunta 1
Pregunta
All economic questions are about:
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how to make money
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what to produce
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how to cope with scarcity
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how to satisfy all our wants
Pregunta 2
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Macroeconomics deals with:
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the behaviour of firms
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economic aggregates
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the activities of individual units
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the behaviour of the electronics industry
Pregunta 3
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Microeconomics is not concerned with the behaviour of:
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aggregate demand
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consumers
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industries
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firms
Pregunta 4
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The study of inflation is part of:
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normative economics
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macroeconomics
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microeconomics
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descriptive economics
Pregunta 5
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The word that comes from Greek for "one who manages a household" is:
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market
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consumer
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producer
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economy
Pregunta 6
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What are the two major functions of a managerial economist?
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decision-making and profit management
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decision-making and capital management
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decision-making and forward planning
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pricing decisions and policies & practices
Pregunta 7
Pregunta
Which of the following statements about factors of production is false?
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The factor of production termed capital means the money which the owners of the firms need in order to set their firms up.
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The term "factors of production" is another term for resources
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The factor of production termed labour means human resources
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The factor of production termed land means natural resources
Pregunta 8
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Which of the following statements about the use of resources is not one of the key questions in economics?
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How are resources used?
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Where are resources used?
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For what are resources used?
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For whom are resources used?
Pregunta 9
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What is meant by intermediate goods and services?
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The same as capital goods, such as plant, buildings, vehicles, and machinery.
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Products which one firm buys off another and then uses up in its own products
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All inputs bought by the firms, including labour and raw materials
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Imports
Pregunta 10
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What is meant by the term final goods and services?
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The same as the term intermediate goods and services
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The same as the term consumer goods and services
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All goods and services except those traded second hand
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Goods and services which are finished as far as the economy is concerned
Pregunta 11
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Which of the following statements is true?
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Microeconomics is concerned with the economy as a whole
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Macroeconomics is concerned with individual markets
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Governments have no influence over market prices
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When economists study the price in a market, their chief aims are to understand why the price is what it is and why it might change
Pregunta 12
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Which of the following types of economy describes the economy of the UK?
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A command economy
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A market economy
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A mixed economy
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A planned economy
Pregunta 13
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The supply and demand model applies when three of the following four conditions are met. Which condition is not required?
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There must be many buyers
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There must be many sellers
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The buyers and sellers must trade an identical item
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The item traded must be a product
Pregunta 14
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Suppose a market is in equilibrium, and then the demand increases. Which of the following would be shown on a graph that illustrated the effects?
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An excess demand at the initial equilibrium price.
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An excess demand at the new equilibrium price.
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An excess supply at the initial equilibrium price.
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An excess supply at the new equilibrium price.
Pregunta 15
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Suppose there is excess supply in a market and the price decreases. Which of the following combinations of events will occur?
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There will be a fall in quantity supplied and a rise in quantity demanded.
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There will be a fall in quantity supplied and a rise in demand.
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There will be a fall in supply and a rise in quantity demanded.
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There will be a fall in supply and a rise in demand.
Pregunta 16
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Suppose there is a decrease in supply in a market where the supply curve slopes upwards and the demand curve slopes downwards. Which of the following would not occur?
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An excess supply
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A fall in price
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A fall in supply
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A fall in the equilibrium level of expenditure
Pregunta 17
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Which of the following statements is false?
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Price elasticity of demand is negative for most products
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Price elasticity of supply is positive for most products
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Income elasticity of demand is positive for normal goods
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Cross elasticity of demand is positive between complements
Pregunta 18
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If the demand curve shifts to the right, then we move up and to the right along our supply curve.
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- True
- False
Pregunta 19
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According to the Law of Demand, the demand curve for a good will
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shift leftward when the price of a good increases
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shift rightward when the price of a good increases
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slope downward
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slope upward
Pregunta 20
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If government regulations prohibit the production of a particular good, the demand curve for that good will most likely...
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shift leftward
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shift rightward
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remain unchanged
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disappear
Pregunta 21
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Suppose there are 100 identical firms in the rag industry, and each firm is willing to supply 10 rags at any price. The market supply curve will be a...
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vertical line where Q = 10
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vertical line where Q = 100
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vertical line where Q = 1000
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horizontal line where Q = 1000
Pregunta 22
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Equilibrium is defined as a situation in which:
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neither buyers or sellers want to change their behaviour
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no government regulations exist
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demand curves are perfectly horizontal
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suppliers will supply any amount that buyers want to buy
Pregunta 23
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A competitive equilibrium is described by
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a price only
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a quantity only
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the excess supply minus the excess demand
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a price and a quantity
Pregunta 24
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When two goods are substitutes, a shock that raises the price of one good causes the price of the other good to...
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remain unchanged
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decrease
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increase
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change in an unpredictable manner
Pregunta 25
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The percentage change in the quantity demanded in response to a percentage change in the price is known as the:
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slope of the demand curve
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excess demand
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price elasticity of demand
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None of the examples
Pregunta 26
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If the price elasticity of demand for a good is less than one in absolute terms, we say consumers of this good...
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are not very sensitive to price
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are not very sensitive to the quantity they demand
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are very sensitive to price
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are elastic
Pregunta 27
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A market is considered imperfectly competitive whenever...
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the government intervenes to set a price floor
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supply and demand explain how prices are determined
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a single buyer or seller has the power to affect the price of the product
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supply and demand fail to establish an equilibrium
Pregunta 28
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In a market system, prices are determined by:
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Government bureaucrats
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Supply and demand
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Total market demand
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Production costs
Pregunta 29
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If buyers expect the price of a good to rise in the future, the result is...
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a decrease in supply today
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an increase in supply today
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an increase in quantity demanded today
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an increase in demand today
Pregunta 30
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If the cross-price elasticity of demand between two goods is negative, then...
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the two goods are complements
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the two goods are substitutes
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one of the goods must be inferior
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the two goods are rarely used together by consumers
Pregunta 31
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If the price elasticity of demand for a good is 0.75 , the demand for that good can be described as:
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Normal
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Elastic
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Inferior
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Inelastic
Pregunta 32
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If the income elasticity of demand for a good is negative, then the good is:
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a normal good
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an inferior good
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a luxury good
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a Giffen good
Pregunta 33
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What kind of relationship exists between the price of a good and demand of its complementary good?
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Direct
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Inverse
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No effect
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Can be direct or inverse
Pregunta 34
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Law of Demand does not hold in case of:
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Emergency
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Expectation of price rise
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Conspicuous goods
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All of the answers
Pregunta 35
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If value of Es < 1, it is called:
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Elastic supply
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Inelastic supply
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Perfectly elastic supply
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Perfectly inelastic supply
Pregunta 36
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In the short-run, which of the following always gets smaller as output increases?
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Average fixed cost
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Average variable cost
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Short-run average cost
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Short-run marginal cost
Pregunta 37
Pregunta
Which of the following statements about a profit-maximising firm is false?
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It might set its daily output at a higher level in the short-run than in the long-run.
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It might set its daily output at a lower level in the short-run than in the long-run.
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If it had a daily output of zero in the short-run, it would be sure to have a total cost of zero.
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If it had a daily output of zero in the long-run, it would be sure to have a total cost of zero.
Pregunta 38
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Implicit costs are:
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equal to total fixed costs
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comprised entirely of variable costs
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"payments" for self-employed resource
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always greater in the short-run than in the long-run
Pregunta 39
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If a firm's revenues just cover all its opportunity costs, then;
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normal profit is zero
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economic profit is zero
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total revenues equal its explicit costs
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total revenues equal its implicit costs
Pregunta 40
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The short-run is a time period in which...
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all resources are fixed
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the level of output is fixed
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the size of the production plant is variable
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some resources are fixed and others are variable
Pregunta 41
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The law of diminishing returns only applies in cases where:
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There is increasing scarcity of factors of production
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The price of extra units of a factor is increasing
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There is at least one fixed factor of production
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Capital is a variable input
Pregunta 42
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Variable costs are:
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sunk costs
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multiplied by fixed costs
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costs that change with the level of production
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defined as the change in total cost resulting from the production of an additional unit of output
Pregunta 43
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If the short-run average variable costs of production for a firm are rising, then this indicates that:
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average total costs are at a maximum
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average fixed costs are constant
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marginal costs are above average variable costs
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average variable costs are below average fixed costs
Pregunta 44
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When a firm doubles its inputs and finds that its output has more than doubled, this is known as:
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economies of scale
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constant returns to scale
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diseconomies of scale
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a violation of the law of diminishing returns
Pregunta 45
Pregunta
Economies and diseconomies of scale explain why the:
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short-run average fixed cost curve declines so long as output increases
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marginal cost curve must intersect the minimum point of the firm's average total cost curve
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long-run average total cost curve is typically U-shaped
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short-run average variable cost curve is U-shaped
Pregunta 46
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The law of diminishing returns states that:
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as a firm uses more of a variable resource, given the quantity of fixed resources, the average product of the firm will increase
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as a firm uses more of a variable resource, given the quantity of fixed resources, marginal product of the firm will eventually decrease
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in the short-run, the average total costs of the firm will eventually diminish
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in the long-run, the average total costs of the firm will eventually diminish
Pregunta 47
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Opportunity costs arise in production because:
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resources are unlimited
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resources must be shifted away from producing one good in order to produce another
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wants are limited in a society
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monetary costs of inputs usually outweigh non-monetary costs
Pregunta 48
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Costs which increase with an increase in output are called:
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Fixed costs
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Changeable costs
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Variable costs
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Unchangeable costs
Pregunta 49
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Costs which do not increase with an increase in output are called:
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Fixed costs
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Changeable costs
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Variable costs
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Unchangeable costs
Pregunta 50
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Marginal cost is:
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The addition to cost associated with one additional unit of output
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The per unit cost of production
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The per unit variable cost of production
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The per unit fixed cost of production
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