#1
Which of the following is a characteristic of a perfectly competitive market?
Many buyers and one seller
Few buyers and many sellers
One buyer and many sellers
One buyer and one seller
#2
What does the law of demand state?
As price increases, quantity demanded increases
As price decreases, quantity demanded increases
As price increases, quantity demanded decreases
As price decreases, quantity demanded decreases
#3
What does the term 'utility' refer to in economics?
The ability of a good or service to satisfy human wants
The total quantity of goods produced in a market
The amount of money an individual has
The level of competition in a market
#4
What is the opportunity cost of a decision?
The monetary cost of the decision
The value of the next best alternative forgone
The total cost of all available options
The cost of the decision multiplied by its benefits
#5
What is a characteristic of a monopolistic competition market structure?
Many buyers and many sellers with identical products
One buyer and many sellers
Few buyers and many sellers
Many buyers and many sellers with differentiated products
#6
What is a market equilibrium?
When quantity demanded equals quantity supplied
When quantity demanded exceeds quantity supplied
When quantity supplied exceeds quantity demanded
When quantity demanded and quantity supplied are not equal
#7
What is a monopolistic competition characterized by?
Many buyers and many sellers with differentiated products
One buyer and one seller
Many buyers and one seller
Few buyers and many sellers
#8
What is the main function of a price floor?
To prevent prices from falling below a certain level
To prevent prices from rising above a certain level
To encourage producers to produce more goods
To encourage consumers to buy more goods
#9
What is the formula for calculating total revenue?
Price multiplied by quantity demanded
Price divided by quantity demanded
Price plus quantity demanded
Price minus quantity demanded
#10
What is the slope of the demand curve in a perfectly competitive market?
Positive
Negative
Horizontal
Vertical
#11
What is price elasticity of demand?
A measure of how much quantity demanded responds to a change in price
A measure of how much quantity supplied responds to a change in price
A measure of how much consumers are willing to pay for a product
A measure of how much firms are willing to produce at a given price
#12
In a perfectly competitive market, firms are considered to be price takers because...
They have the power to influence market prices
They have no control over the market price
They have complete control over the market price
They have the power to set market prices
#13
What is a public good in economics?
A good that is both non-excludable and rival in consumption
A good that is excludable but non-rival in consumption
A good that is rival in consumption but non-excludable
A good that is both excludable and rival in consumption
#14
Which of the following is a characteristic of a monopoly?
Many buyers and many sellers with similar products
One buyer and many sellers
One buyer and one seller
One seller with no close substitutes
#15
What does the term 'elasticity' measure in economics?
The responsiveness of one variable to changes in another variable
The total quantity of goods demanded in a market
The total quantity of goods supplied in a market
The level of competition in a market