1.Goods which have price elasticity of demand that are elastic find that total revenue:

A.rises with a price rise

B.falls with a price rise

C.fall with a price fall

D.remains unchanged whether price rise or fall

2.The term "law of diminishing marginal utility" used in explaining downward sloping demand curves, others things constant, is best described by which of the following statements?

A.The total satisfaction you obtain from consuming a good tends to fall.

B.The average satisfaction you obtain from consuming a good tends to fall.

C.The additional satisfaction you obtain from consuming an additional unit of a good tends to fall.

D.The total satisfaction you obtain from the good tends to rise.

3.Which of the following is NOT an assumption of the production function?

A.Labor used in production is a fixed resource

B.It is related to a particular unit of time

C.Technical knowledge in that period is constant

D.The procedure involves using the best technique available

4.The covid-19 virus has caused a high demand for three brands of vaccines Johnson and Johnson, Pfizer-BioNTech, and Moderna. Considering the demand and the competition in the market they have decided to act as one seller. These firms may be categorized as _________________________.

A.Monopolist

B.Oligopolist

C.Cartel

D.None of above

5.The optimum level of consumption or production for the individual consumer or firm will be where _________________________.

A.Marginal Benefit is equal to Marginal cost

B.Marginal benefit is greater than marginal cost

C.Marginal benefit is less than marginal cost

D. None of the above

6.A typical indifference curve _____________________________.

A.shows that as a consumer has more of a good he or she is less willing to exchange it for one unit of another good

B.shows all combinations of goods that give a consumer the same level of utility

C.has a greater level of satisfaction the further away it is from the origin

D.both b and c

7.A firm's short-run marginal cost______________________________.

A.increases with output

B.remain constant within the relevant range

C.shows the change in total costs that results when an additional unit of output is produced

D.includes the cost of machinery and equipment