Category: ECO231 0 ECO231 1 / 50 The slope of the _________ curve measures the MRS. Check 2 / 50 Any two points on an _________ curve generate the same level of utility. Check 3 / 50 By selling 30 units, firm JKB make N300. After selling the 31st unit, firm’s revenue increased to 318. What is the marginal revenue in this situation? N17 N15 N18 N16 4 / 50 Because the marginal utility of an additional diamond is higher than the marginal utility associated with an additional glass of water, diamonds have a _________ value in exchange. Check 5 / 50 Monopolist ________ profits Check 6 / 50 The _______________ would then say that income is equal to the sum of consumer expenditure. budget restraint budget constraint budget line budget money 7 / 50 Perfect competition means there are few, if any, ________ to entry for new companies, and prices are determined by supply and demand. Check 8 / 50 These concepts of __________ and marginal utility can be used to resolve Adam Smith's diamond-water paradox. Check 9 / 50 When Adam Smith was referring to "value in use," he was actually referring to the concept of ________ utility. Check 10 / 50 Higher indifference curves are preferred to __________ ones, since more is preferred to less (non-satiation). Check 11 / 50 When good X becomes relatively more expensive, the quantity of good X demanded falls as a result of the ________ effect Check 12 / 50 Which equation is Y = I/Py - Px/Py * X? budget expenditure budget line budget constraint budget limit 13 / 50 What does the "non-satiation" expression connotes? “few is always better than less.” “more is always better than less.” “more is always better than excess” “less is always better than more.” 14 / 50 Microeconomics also supposes that consumer consumers make their buying decisions in an effort to ___________ happiness or benefit. increasing maximizing minimizing reducing 15 / 50 In perfect competitive market ______________. P = TC P = MC P = AC P = AR 16 / 50 What does convexity say? that marginal utility declines as consumption is proportional. that marginal utility declines as consumption decreases. that marginal utility declines as consumption increases. that marginal utility increases as consumption increases 17 / 50 Price discrimination is a pricing strategy that enables monopolist to charge customers __________ prices for the same good or service. Check 18 / 50 A basic assumption of microeconomics is that because a consumer does not have _______________, his or her available cash for spending must be judiciously allocated for maximum benefit. a limited budget an unlimited income an unlimited budget a limited income 19 / 50 Exchange value, on the other hand, is tied to how much someone is willing to pay for an ________ unit of the commodity. Check 20 / 50 _________ utility is a measure of the additional utility that is derived when an additional unit of the good is consumed. Check 21 / 50 The short run profit maximization in monopolistically competitive firm is the same as that of monopoly i.e. ___________________ this condition should hold. MC=TR MC=MR MC=AR AC=MR 22 / 50 Indifference curves are _______ sloping Check 23 / 50 If TR/Q = (P x Q)/Q = Price, what is price? average revenue average cost total revenue marginal cost 24 / 50 Perfect competition exists in an industry where perfect competition is characterized by ________ buyers and sellers, many products that are similar in nature and, as a result, many substitutes. Check 25 / 50 In a monopoly the company is similar to the ______ Check 26 / 50 Note that this (MR) too is equal to price, so the marginal revenue is constant as well, and is equal to average revenue. True all of the above Maybe False 27 / 50 The consumer is considered to be __________ person, who tries to spend his or her money to derive the maximum amount of satisfaction, or __________, from it. a rational/utility a rational/price an irrational/utility a rational/cost 28 / 50 The Bertrand model is essentially the Cournot-Nash model except the strategic variable is price rather than _______ Check 29 / 50 If Pb = N0.50/milk be the price of milk, and Po = N1.00/bread the price of bread. The relative price of a tin of milk in terms of bread is ____________ a loaf of bread. ½ 1 2 3 30 / 50 How did Adam Smith resolve the problem of low value for water and high value for diamond? he proposed value in use and value in store. he proposed value in use and value in exchange. he proposed value in stock and value in exchange. he proposed value in sale and value in exchange. 31 / 50 An example of price discrimination is quantity/bulk purchase _________ Check 32 / 50 A higher indifference curve that lies above and to the ________ of another indifference curve represents a higher level of satisfaction and combination on a lower indifference curve yields a lower satisfaction. Check 33 / 50 Factors of production are never demanded for their own sake thus the demand here is a ________ demand Check 34 / 50 Since water is not very costly to acquire, people consume _______ water. At this high level of consumption, the marginal utility of an additional unit of water is relatively low. Check 35 / 50 Which of the following is an assumption of the model of perfect competition? homogeneous goods all of the above many buyers and sellers perfect knowledge 36 / 50 Consumer utility is achieved when the ratio of marginal utility of one commodity is equal to its price is equal to the _______ of another to its price. Check 37 / 50 Calculate the total revenue for a firm which is selling 10 television sets at N21,000 each. N21,000 N210,000 N210,100 N2,100,000 38 / 50 The law of ________ marginal utility states that consumption of any item yields the consumer declining utility holding taste constant. Check 39 / 50 Because diamonds are __________, consumers consume few diamonds and the marginal utility of an additional diamond is relatively high. Check 40 / 50 The theory of distribution is an attempt to explain how _________ is distributed among the of production. Check 41 / 50 Expenditure on a particular good is the product of the amount of the good purchased times its price. We can then write the budget constraint as _____________. I = Px*X +PyY. I = P*X +Py*Y. I = Px*X +Py*Y. I = Px*X +y*Y. 42 / 50 Total utility will decline only if _________ utility is negative. Check 43 / 50 To maximize utility subject to budget constraint, the ratio of marginal utility to price should be_________. the same for all consumers different for all goods different for all consumers the same for all goods sold 44 / 50 An oligopoly is where there are a __________ sellers with similar or identical products Check 45 / 50 If a good causes problem for a consumer we say it has _______ effect. Check 46 / 50 Convexity is based on the notion that as a consumer consumes more and more of a particular good, the additional utility obtained _____________ increases decreases neither decreases nor decreases proportional 47 / 50 Market structure is the number of firms producing identical goods, which are _______________ in nature. differentiated irregular homogeneous segregated 48 / 50 Monopolistic Competition is one of the markets in-between perfectly _________ market and monopoly market Check 49 / 50 These are few but very important features of monopolistic competition. Product ______ using branding and advertisement Check 50 / 50 The demand curve facing a monopoly firm is the ___________ demand curve Check Restart quiz Rate this quiz Send feedback
