Economics MCQs

A. Is always more elastic than the short-run market supply curve.
B. Is always perfectly elastic
C. Has the same elasticity as the short run market supply curve
D. Is always less elastic than the short-run market supply curve

A. Downward sloping
B. Perfectly inelastic
C. Upward sloping
D. Perfectly elastic

A. An increase in the number of firms in the market but no increase in the price of the good
B. An increase the price of the good and an increase in the number of firms in the market
C. An increase the price of the good but no increase in the number of firms in the market
D. No impact on either the price of the good or the number of firms in the market

A. Decreased production
B. Maintained production at the current level
C. Temporarily shut down.
D. Increased production

A. The price covers average variable cost
B. The price covers variable cost
C. The price covers average fixed cost
D. The price covers fixed costs

A. Price equals marginal revenue
B. Price is greater than marginal revenue
C. Price equals total revenue
D. Price equals total cost

A. Electricity
B. Cable television
C. Cola
D. Milk

A. Total revenue divided by the quantity sold
B. Equal to the quantity of the good sold
C. Average revenue divided by the quantity sold
D. Equal to the price of the good sold

A. Has failed
B. Works well in utopia
C. Is widely used in sub saharan africa
D. Is the only way to eradicate poverty?

I- The technical coefficients are fixed which means so substitution between inputs occurs
Ii- there are no externalities so that the total effect of carrying out several activities is the sum of the separate effects
Iii- each good is produced by only one industry and each industry produces only one commodity
Iv- there is no technical change