#1
Which of the following is a characteristic of a perfectly competitive market?
Many buyers and one seller
One buyer and many sellers
Many buyers and many sellers
One buyer and one seller
#2
What does the term 'utility' mean in economics?
The total revenue generated by a firm
The satisfaction or pleasure a consumer derives from consuming a good or service
The price a consumer is willing to pay for a good or service
The total cost incurred by a firm
#3
Which of the following is a determinant of supply?
Tastes and preferences
Income of consumers
Price of related goods
Cost of production
#4
In economics, what does 'ceteris paribus' mean?
All else being equal
All else being different
All else being constant
All else being variable
#5
What is the formula for calculating total revenue?
Price × Quantity
Price / Quantity
Quantity / Price
Price - Quantity
#6
Which of the following is a determinant of demand?
Cost of production
Price of the good itself
Number of firms in the market
Technological advancements
#7
What is the primary function of price elasticity of demand?
To measure the responsiveness of quantity demanded to a change in price
To measure the total revenue generated from a product
To measure the price of substitute goods
To measure the price of complementary goods
#8
Which of the following is an example of a positive externality?
Pollution from a factory harming nearby residents
Government imposing taxes on cigarettes
Education providing benefits to society beyond the individual
A decrease in the price of oil leading to lower gasoline prices
#9
In a monopolistic competition market structure, firms have:
Identical products and easy entry and exit
Identical products and barriers to entry
Differentiated products and easy entry and exit
Differentiated products and barriers to entry
#10
What is the formula for calculating price elasticity of demand?
Percentage change in quantity demanded / Percentage change in price
Percentage change in price / Percentage change in quantity demanded
Change in quantity demanded / Change in price
Change in price / Change in quantity demanded
#11
Which of the following is an example of a perfectly inelastic demand?
Gasoline in the short run
Luxury cars
Unbranded basic commodities
Artwork by famous artists
#12
What is the formula for calculating marginal cost?
Change in total cost / Change in quantity
Change in total revenue / Change in quantity
Change in total cost / Change in price
Change in total revenue / Change in price
#13
What does the term 'opportunity cost' refer to in economics?
The cost incurred when a business shuts down
The cost of producing one more unit of a good
The value of the next best alternative forgone
The cost of raw materials in production
#14
Which of the following is a characteristic of a natural monopoly?
Many firms producing identical products
One firm producing a product with high fixed costs and low marginal costs
Many firms producing differentiated products
One firm producing a product with low fixed costs and high marginal costs
#15
What is the 'Laffer curve' in economics?
A curve that shows the relationship between the price level and the quantity of goods and services supplied
A curve that shows the relationship between tax rates and tax revenue
A curve that shows the relationship between unemployment and inflation
A curve that shows the relationship between interest rates and investment
#16
What is the equation for the price elasticity of supply?
Percentage change in quantity supplied / Percentage change in price
Percentage change in price / Percentage change in quantity supplied
Change in quantity supplied / Change in price
Change in price / Change in quantity supplied
#17
What does the term 'marginal utility' refer to?
The total satisfaction derived from consuming a good
The additional satisfaction derived from consuming one more unit of a good
The total revenue generated from selling a good
The additional revenue generated from selling one more unit of a good