Economics MCQs

A. An indifference curve
B. The budget constraint
C. The marginal rate of substitution
D. The consumption limits

A. Right angles
B. Bowed outward
C. Straight lines
D. Nonexistent

A. 2
B. 10
C. 1/2
D. 5

A. Indifference curves are downward sloping
B. Indifference curves are bowed outward
C. Indifference curves do not cross each other
D. Higher indifference curve is preferred to lower ones

A. the slope of the indifference curve equals the slope of the budget constraint
B. the indifference curve is tangent to the budget constraint
C. the relative prices of the two goods equals the marginal rate of substitution
D. none of these answers are true

A. A complementary good
B. An inferior good
C. A normal good
D. A substitute good

A. Z
B. X
C. Y
D. The optimal point cannot be determined from this graph

A. Demand is perfectly elastic
B. Products are homogeneous
C. Marginal revenue = price
D. The marginal revenue is below the demand curve and diverges

A. Product
B. Price
C. Place
D. Presence

A. The marginal cost will shift outwards
B. The demand curve will shift inwards
C. The average cost will shift downwards
D. The average variable cost will increase