Question 1 (1 point)

Ceteris paribus condition means..

Question 1 options:

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

Question 2 (1 point)

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

Question 2 options:

	demand curve
	product curve
	price curve
	supply curve

Question 3 (1 point)

As per the Substitution effect, the change in the quantity demanded of a good that results from a change in price, making the good more or less expensive relative to other goods that are substitutes.

Question 3 options:

	True
	False

Question 4 (1 point)

Scarcity is a situation in which..

Question 4 options:

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

Question 5 (1 point)

Separation of ownership from control isa situation in a corporation in which the top management, rather than the shareholders, controls day-to-day operations.

Question 5 options:

	True
	False

Question 6 (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 6 options:

	True
	False

Question 7 (1 point)

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

Question 7 options:

	None of the given
	Organizational chart
	Corporate governance
	Separation of ownership

Question 8 (1 point)

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

Question 8 options:

	Engagement cost
	Variable cost
	Opportunity cost
	Marginal cost

Question 9 (1 point)

Increase in price of related good increases demand if products are substitutes, decreases demand if products are complements.

Question 9 options:

	True
	False

Question 10 (1 point)

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

Question 10 options:

	True
	False

Question 12 (1 point)

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

Question 12 options:

	True
	False

Question 13 (1 point)

Identify the correct examples of markets. Select all correct ones.

Question 13 options:

	Kijij.com
	Stock market
	Meta market
	Facebook market
	Farmers vegetable market

Question 14 (1 point)

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

Question 14 options:

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

Question 15 (1 point)

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

Question 15 options:

	Factors of production
	Product markets
	Factor markets
	Resources of production

Question 16 (1 point)

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

Question 16 options:

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

Question 18 (1 point)

Balance sheet is afinancial statement that sums up a firm's financial position on a particular day, usually the end of a quarter or year.

Question 18 options:

	True
	False

Question 19 (1 point)

As per the Law of Demand..

Question 19 options:

	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.
	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.
	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.
	none of the given.

Question 20 (1 point)

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

Question 20 options:

	True
	False

Question 21 (1 point)

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

Question 21 options:

	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.
	A free market is one with few government restrictions on how a good or service can be produced or sold.
	This is a relatively new concept.

Question 22 (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 22 options:

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

Question 23 (1 point)

Income statement is afinancial statement that shows a firm's revenues, costs, and profit over a period of time.

Question 23 options:

	True
	False

Question 24 (1 point)

Absolute advantage is..

Question 24 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.
	The ability of an individual, a firm, or a country to produce a good or service at a lower opportunity cost than competitors.
	None of the given.

Question 25 (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 25 options:

	marginal revenue curve
	production possibilities frontier
	marrinal cost curve
	demand curve