Question 1 (1 point)

The curve showing the maximum attainable combinations of two goods that can be produced with available resources and current technology is known as..

Question 1 options:

	production possibilities frontier
	marrinal cost curve
	marginal revenue curve
	demand curve

Question 2 (1 point)

Ceteris paribus condition means..

Question 2 options:

	The requirement that when analyzing the relationship between two variables - other variables must be held constant.
	The requirement that when analyzing the relationship between two variables - other variables might be held constant or variable.
	The requirement that when analyzing the relationship between two variables - other variables must be held variable.
	None of the given.

Question 3 (1 point)

"The principle that consumers experience diminishing additional satisfaction as they consume more of a good or service during a given period of time." is known as..

Question 3 options:

	Law of demand
	None of the given
	Law of diminishing marginal utility
	Law of satisfaction

Question 4 (1 point)

Absolute advantage is..

Question 4 options:

	The ability of an individual, a firm, or a country to produce more of a good or service than competitors, using more amount of resources.
	The ability of an individual, a firm, or a country to produce more of a good or service than competitors, using the same amount of resources.
	None of the given.
	The ability of an individual, a firm, or a country to produce a good or service at a lower opportunity cost than competitors.

Question 5 (1 point)

Collusion: an agreement among firms to charge the same price or otherwise not to compete.

Question 5 options:

	True
	False

Question 6 (1 point)

'Consumption' is spending by households on goods and services, including spending on new houses.

Question 6 options:

	True
	False

Question 7 (1 point)

Scarcity is a situation in which..

Question 7 options:

	unlimited wants exceed the limited resources.
	limited wants exceed the limited resources.
	unlimited wants exceed the unlimited resources.
	limited wants exceed the unlimited resources.

Question 8 (1 point)

Economics is..

Question 8 options:

	the study of the choices companies make to attain their targets, given their scarce resources.
	the study of the choices people make to attain their goals, given their scarce resources.
	the study of the choices people make to attain their goals, given their unlimited resources.
	the study of the choices institutions make to attain their goals, given their scarce resources.

Question 9 (1 point)

With Normals goods the demand increases as income rises and decreases as income falls.

Question 9 options:

	True
	False

Question 10 (1 point)

Microeconomics is the study of the economy as a whole, including topics such as inflation, unemployment, and economic growth.

Question 10 options:

	True
	False

Question 11 (1 point)

Gross domestic product (GDP) refers tothe market value of all final goods and services produced in a country during a period of time, typically one year.

Question 11 options:

	True
	False

Question 12 (1 point)

_____________is the way in which a corporation is structured and the effect that structure has on the corporation's behavior.

Question 12 options:

	Organizational chart
	None of the given
	Corporate governance
	Separation of ownership

Question 13 (1 point)

As per the Law of Demand..

Question 13 options:

	holding everything else constant, when the price of a product falls, the quantity demanded of the product will decrease, and when the price of a product rises, the quantity demanded of the product will increase.
	holding everything else constant, when the price of a product falls, the quantity demanded of the product will increase, and when the price of a product rises, the quantity demanded of the product will decrease.
	none of the given.
	irrespective of other factors, when the price of a product falls, the quantity demanded of the product will increase, and when the price of a product rises, the quantity demanded of the product will decrease.

Question 14 (1 point)

The highest-valued alternative that must be given up to engage in an activity is..

Question 14 options:

	Marginal cost
	Variable cost
	Opportunity cost
	Engagement cost

Question 15 (1 point)

____________ is a cost that has already been paid and cannot be recovered.

Question 15 options:

	Fixed cost
	Sunk cost
	Financial cost
	Opportunity cost

Question 16 (1 point)

A Market is..

Question 16 options:

	A group of sellers of a good or service and the institution or arrangement by which they come together to trade.
	A group of buyers and sellers of a good or service and the institution or arrangement by which they come together to trade.
	None of the given.
	A group of buyers of a good or service and the institution or arrangement by which they come together to trade.

Question 17 (1 point)

Principal-agent problem is a problem caused by an agent pursuing the agent's own interests rather than the interests of the principal who hired the agent.

Question 17 options:

	True
	False

Question 18 (1 point)

A situation in which a good or service is produced at the lowest possible cost is..

Question 18 options:

	None of the given
	Allocative efficiency
	Productive efficiency
	Economic efficiency

Question 19 (1 point)

As per the economies of scale, the firm's long-run average costs falls as it increases the quantity of output it produces.

Question 19 options:

	True
	False

Question 20 (1 point)

An economic model is..

Question 20 options:

	simplified version of reality used to analyze real-world economic situations.
	none of the given answer.
	simplified version of reality used to analyze hypothetical economic situations.
	complicated version of reality used to analyze real-world economic situations.

Question 21 (1 point)

In analyzing markets, identify the incorrect assumption.

Question 21 options:

	People love to follow rules.
	People respond to economic incentives.
	People are rational.
	Optimal decisions are made at the margin.

Question 22 (1 point)

If pizza is a normal good, the income effect of its price decreasing will cause you to consume more pizza.

Question 22 options:

	True
	False

Question 23 (1 point)

Net exports are the value of exports minus the value of imports.

Question 23 options:

	True
	False

Question 24 (1 point)

________________ is a situation in which quantity demanded equals quantity supplied.

Question 24 options:

	Market equilibrium
	Perfect competition
	Balanced demand and supply
	None of the given

Question 26 (1 point)

Microeconomics is the study of the economy as a whole, including topics such as inflation, unemployment, and economic growth.

Question 26 options:

	True
	False

Question 27 (1 point)

With reference to the concept of Free market, identify the Wrong statement.

Question 27 options:

	This is a relatively new concept.
	A free market is one with few government restrictions on how a good or service can be produced or sold.
	Countries that come closest to the free market benchmark have been more successful than those with centrally planned economies.
	Free market concept can be helpful in providing their people with rising living standards.

Question 28 (1 point)

In economics, Land, labor and Capital is known as..

Question 28 options:

	Product markets
	Factor markets
	Resources of production
	Factors of production

Question 29 (1 point)

A situation that occurs in markets when both the buyer and the seller of a product are made better off by the transaction is..

Question 29 options:

	Routine exchange
	Special exchange
	Legal exchange
	Voluntary exchange

Question 30 (1 point)

Increase in income increases demand if product is normal, decreases demand if product is inferior.

Question 30 options:

	True
	False

Question 31 (1 point)

An economy in which the government decides how economic resources will be allocated is..

Question 31 options:

	Mixed economy
	Market economy
	Planned economy
	Centrally planned economy

Question 32 (1 point)

Economies of scale is a the situation when a firm's long-run average costs fall as the firm increases output.

Question 32 options:

	True
	False

Question 33 (1 point)

Game theory is the study of how people make decisions in situations in which attaining their goals depends on their interactions with others.

Question 33 options:

	True
	False

Question 34 (1 point)

A curve that shows the relationship between the price of a product and the quantity of the product demanded is..

Question 34 options:

	demand curve
	product curve
	supply curve
	price curve

Question 35 (1 point)

"The rule that, holding everything else constant, increases in price cause increases in the quantity supplied, and decreases in price cause decreases in the quantity supplied" is..

Question 35 options:

	Law of supply
	Law of demand
	Law of economics
	Law of price

Question 36 (1 point)

Fized costs are costs that change as output changes.

Question 36 options:

	True
	False

Question 37 (1 point)

Which of the following is Not a characteristics of a perfectly competitive market?

Question 37 options:

	no barriers to new firms entering the market
	firms selling identical products
	many buyers and sellers
	exit barriers in place

Question 38 (1 point)

Monopolistic competition is a market structure in which barriers to entry are low and many firms compete by selling similar, but not identical, products.

Question 38 options:

	True
	False