What does a shift of both demand and supply curves mean?

a.Decrease in quantity bought, decrease in quality sold

b.Increase in quantity bought, decrease in quality sold

c.Increase in quantity bought, increase in quality sold

d.Decrease in quantity bought, increase in quality sold

How does the supply of money cause inflation?

a.Increase in money supply with no corresponding increase on transacted goods, increasing price

b.Decrease in money supply decreasing demand, decreasing price

c.Decrease in money supply increasing demand, thus increasing price

d.Increase in money supply with corresponding increase on transacted goods, keeping price unaffected

The only market structure that can afford a high fixed cost in establishing the firm inherent to technology

a.Monopolistic competition

b.Pure monopoly

c.Oligopoly

d.None of the choices

Which of the following statement is not true about household consumption and savings?

a.None of the choices

b.As internet rates on savings increase, consumption decrease, savings increase

c.As family income increase, expenditure on food decreases

d.As income increase, consumption increases, savings increases

Favorable balance on trade means

a.Greater export activities than import activities

b.Equal import and export levels

c.Greater import activities than export activities

d.More imported goods in the local market than local goods in the international market

46. with the inflow of investment into the economic circular flow

Income is unchanged

b.Savings decrease

c.Consumption increases

d.Consumption decrease

Which of the following may have caused a rightward shift of a supply curve?

a.Expected price increase

b.Technologically innovative process of production

c.None of the choices

d.Increase in production cost

What type of oligopoly leads to pure monopoly

a.Market sharing cartel

b.Sweezy model

c.Duopoly model

d.Centralized cartel

Graphing the costs curves of production, at which point is a firm said to be operating on a maximum level?

a.At the intersection of MC and ATC

b.At the intersection of AVC and ATC

c.At the intersection of MC and AVC

d.At the intersection of MC, AVC and ATC

The kinked demand curve of an oligopoly's firm is caused by

a.Oligopolies cannot increase sales volume through price cut because his rivals would surely follow him

b.Oligopolies cannot increase price if his rivals would not follow him

c.Oligopolies cannot dictate price change in the market

d.Price in an oligopolistic market is dictated by the firm with biggest market share