Economics MCQs

A. Is the rate of return on investments over the interest rate on risk-free government bonds.
B. Is the rate that is just sufficient to keep owners or investors satisfied.
C. Is the difference between total revenue and total costs
D. Is zero in a perfectly competitive industry.

A. A firm’s ability to monopolies a market completely.
B. A firm’s ability to raise price without losing all demand for its product
C. A firm’s ability to sell any amount of output it desires at the market-determined price.
D. A firm’s ability to charge any price it likes

A. No longer influences the amount demand of the firm’s product
B. Becomes a decision variable for the firm
C. Is guaranteed to be above a firm’s average cost.
D. Is determined by the actions of other firms in the industry

A. Fixed costs exceed revenues.
B. It is suffering a loss.
C. Variable costs exceed revenues
D. Total costs exceed revenues

A. £35
B. £15
C. £30
D. £60

A. An indifference curves.
B. An isoquant.
C. An isocost line
D. A production functions

A. Expenditure set
B. Isocost line.
C. Budget constraint
D. Isoquant

A. Decreasing average fixed costs.
B. Decreasing marginal costs.
C. Decreasing average variable costs.
D. Increasing marginal costs.

A. Downward sloping to the right
B. U-shaped
C. Horizontal
D. Upward sloping to the right

A. A concentrated industry.
B. A cartel
C. Price leadership
D. An oligopoly.