In the long-run, some firms will exit the market if the price of the good offered for sale is less than:

marginal revenue.
marginal cost.
average total cost.
average revenue.

If a competitive firm doubles its output, its total revenue:

doubles.
more than doubles.
less than doubles.
cannot be determined because the price of the good may rise or fall.

If there are implicit costs of production:

economic profit will be equal to accounting profit.
economic profit will be less than accounting profit.
economic profits will be zero.
economic profit will be more than accounting profit.

The following table exhibits:

increasing marginal product of labour.
diminishing marginal product of labour.
increasing returns to scale.
diminishing returns to scale.

A buyer’s willingness to pay is that buyer’s:

minimum amount he is willing to pay for a good.
producer surplus.
consumer surplus.
maximum amount he is willing to pay for a good.

Suppose consumer tastes shift toward the consumption of apples. Which of the following statements is an accurate description of the impact of this event on the market for apples?

There is an increase in the quantity demanded of apples and in the supply for apples.
There is an increase in the demand and supply of apples.
There is an increase in the demand for apples and a decrease in the supply of apples.
There is an increase in the demand for apples and an increase in the quantity supplied.

If an increase in consumer incomes leads to a decrease in the demand for camping equipment, then camping equipment is

a normal good.
none of these answers.
an inferior good.
a substitute good

Which of the following statements is normative?

Large government deficits cause an economy to grow more slowly.
People work harder if the wage is higher.
The unemployment rate should be less.
Printing too much money causes inflation

Which of the following is not part of the opportunity cost of going on holiday?

the money you spent on a theatre show
the money you could have made if you had stayed at home and worked
the money you spent on airline tickets
the money you spent on food

Economics is the study of

how society manages its unlimited resources.
how to reduce our wants until we are satisfied.
how society manages its scarce resources.
how to fully satisfy our unlimited wants

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