Question-1

Which of the following is NOT demonstrated by a production possibility curve?

Scarcity

Opportunity cost

Necessity for choice due to scarcity

Price

Question-2

The market price __________ the equilibrium price.

can be higher than, but never lower than

can be lower than, but never higher than

can be higher than, or lower than

is always equal to

Question-3

The poverty line is set:

by the U.S. Bureau of the Census (based on family food budgets).

at the same income level right now as it's been since 1982.

so high that over 30% of all Americans are officially poor.

by the United Nations for every country in the world.

Question-4

If a monopolist has a straight-line demand curve, then its marginal revenue curve will:

be the same as the demand curve.

fall twice as quickly as the demand curve.

lie below the demand curve at all points.

cross the demand curve.

Question-5

As long as total utility is increasing, we know that marginal utility is:

positive.

decreasing.

increasing.

negative.

Question-6

A key reason that our gasoline prices elevated rapidly from 2006 to 2008 was:

tight global supplies and high prices.

the war in the Middle East.

greed by oil exporting countries.

inflation.

Question-7

In order for real wages to grow:

productivity must grow.

productivity must fall.

money wages must grow.

money wages must fall.

Question-8

The substitution effect and the output effect work in the:

same direction some of the time.

same direction all of the time.

opposite direction some of the time.

opposite direction all of the time.

Question-9

The law of demand holds for:

individuals, but not for markets.

markets, but not for individuals.

both individuals and for markets.

neither individuals nor for markets.

Question-10

A firm will maximize its profits or minimize its loss at the output where:

the difference between price and marginal cost is at its maximum.

total cost equals total revenue.

marginal cost equals marginal revenue.

total revenue equals variable cost.