When a market is in equilibrium:

Which of the following is incorrect?

The central problem in economics is that of allocating scarce resources in such a manner that society’s unlimited needs are satisfied as well as possible.
In mixed economy, the government and the private sector interact in solving the basic economic questions.
Microeconomics best describes the study of the behaviour of individual agents.
An important theme in economics is that market systems are better than command (socialistic) economies.

If a firm’s average variable cost curve is rising, its marginal cost curve must be:

In the long run any firm will eventually leave the industry if:

A necessity is defined as a good having:

Which of the following is correct?

Normative economics is not concerned with value judgment.
A market is a process that reconciles consumer decision, production decisions and labour decisions.
A mixed economy has a certain level of government intervention in the economy along with private sector ownership of the economy.
Both (b) and (c).

A competitive firm maximizes profit at the output level where:

In the short run if a perfectly competitive firm finds itself operating at a loss, it will:

An increase in the demand can result from:

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