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Principles of Microeconomics MCQ

1. What is utility maximization?

An assumption that people try to achieve the lowest level of utility given their budget constraint.

An assumption that people try to achieve the highest level of profit given their budget constraint.

An assumption that people try to achieve the highest level of utility given their budget constraint.

An assumption that people try to minimize their utility given their budget constraint.

Answer

Correct Answer: An assumption that people try to achieve the highest level of utility given their budget constraint.

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2. What is included in total costs?

Marginal costs

The sum of variable costs and fixed costs

Fixed costs

Variable costs

Answer

Correct Answer: The sum of variable costs and fixed costs

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3. What is the total cost?

The product of variable and fixed costs

The division of variable and fixed costs

The sum of variable and fixed costs

The difference of variable and fixed costs

Answer

Correct Answer: The sum of variable and fixed costs

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4. A time-series graph plots a variable over what?

Other variables

Objects

Time

Space

Answer

Correct Answer: Time

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5. What is a time-series graph?

A graph that uses polar coordinates.

A graph that plots a variable over time, usually with time on the horizontal axis.

A graph that plots two variables against each other.

A graph with a logarithmic scale.

Answer

Correct Answer: A graph that plots a variable over time, usually with time on the horizontal axis.

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6. What is TANF?

Taxation and Nationalization of Foreigners program

Trump's Accelerated National Frequency

Transfer of Army Nannies and Fathers

Temporary Assistance to Needy Families program

Answer

Correct Answer: Temporary Assistance to Needy Families program

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7. What was the Smoot-Hawley tariff?

A set of tariffs imposed in 1687 that lowered the average tariff level to 15 percent by 1690.

A set of tariffs imposed in 1789 that raised the average tariff level to 35 percent by 1792.

A set of tariffs imposed in 1867 that lowered the average tariff level to 25 percent by 1870.

A set of tariffs imposed in 1930 that raised the average tariff level to 59 percent by 1932.

Answer

Correct Answer: A set of tariffs imposed in 1930 that raised the average tariff level to 59 percent by 1932.

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8. What was the average tariff level in 1932?

52 percent

45 percent

60 percent

59 percent

Answer

Correct Answer: 59 percent

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9. What does the rule of reason require in order for antitrust cases to be decided?

Neither

The existence of monopoly power and the intent to restrict trade

The intent to restrict trade

The existence of monopoly power

Answer

Correct Answer: The existence of monopoly power and the intent to restrict trade

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10. What is the main purpose of revenue tariff?

To protect consumers

To provide revenue to the government

To promote domestic industry

To regulate trade

Answer

Correct Answer: To provide revenue to the government

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11. What is the main purpose of a revenue tariff?

To make imports more expensive than domestic goods

To encourage the purchase of domestic goods

To provide revenue to the government.

To protect domestic industries

Answer

Correct Answer: To provide revenue to the government.

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12. What does return refer to in finance?

The income received from the ownership of an asset

The interest paid on an asset

The amount of money owed on an asset

The principal amount of money owed on an asset

Answer

Correct Answer: The income received from the ownership of an asset

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13. What does the word "quota" mean?

A Flexible plan for investing in shares

A governmental limit on the quantity of a good that may be imported or sold.

The value of investments that go up or down depending on the economy

A system to measure how much a company sells

Answer

Correct Answer: A governmental limit on the quantity of a good that may be imported or sold.

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14. What is a public good?

A good or service that has two characteristics: nonrivalry in consumption and nonexcludability.

A good or service that has two characteristics: rivalry in consumption and nonexcludability.

A good or service that has two characteristics: rivalry in consumption and excludability.

A good or service that has two characteristics: nonrivalry in consumption and excludability.

Answer

Correct Answer: A good or service that has two characteristics: nonrivalry in consumption and nonexcludability.

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15. What do public choice models assume?

That those in government take actions to minimize taxes.

That those in government take actions to improve public services.

That those in government take actions to maximize their own well-being.

That those in government take actions to reduce crime.

Answer

Correct Answer: That those in government take actions to maximize their own well-being.

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16. What is the primary goal of those in government according to public choice models?

Getting reelected

Serving the public

Promoting the common good

Making policy decisions

Answer

Correct Answer: Getting reelected

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17. Which of the following is an advantage of a proportional tax?

The government can change the rate at any time

It encourages people to earn more money

The amount of tax paid is known in advance.

It is difficult to calculate

Answer

Correct Answer: The amount of tax paid is known in advance.

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18. What is property tax?

A tax on the value of property owned.

A tax on the value of income

A tax on the value of property purchased.

A tax on the value of goods and services

Answer

Correct Answer: A tax on the value of property owned.

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19. What are property rights?

The right to a speedy and public trial

Rights over the use, sale, and proceeds from a good or resource.

The right to bear arms

The right to vote

Answer

Correct Answer: Rights over the use, sale, and proceeds from a good or resource.

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20. What is the definition of profits?

Total revenue received from selling the product plus the total costs of producing the product

Total revenue received from selling the product minus the total costs of producing the product

Total costs of producing the product

Total revenue received from selling the product

Answer

Correct Answer: Total revenue received from selling the product minus the total costs of producing the product

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21. What does "profit" mean?

Total revenue received from selling the product minus the total costs of producing the product.

The amount of money spent on advertising

The amount of money spent on raw materials

The amount of money spent on research and development

Answer

Correct Answer: Total revenue received from selling the product minus the total costs of producing the product.

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22. What is Profit Sharing?

A way of earning extra income.

A program where managers and employees receive a share of profits earned by the company.

A method of firing employees.

Something that does not happen in the business world.

Answer

Correct Answer: A program where managers and employees receive a share of profits earned by the company.

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23. What is the name of the programs where managers and employees receive a share of profits earned by the firing?

Incentive programs

Team-building programs

Employee retention programs

Profit sharing programs

Answer

Correct Answer: Profit sharing programs

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24. What is the definition of profit maximization?

The highest possible level of profits—total revenue minus total costs—given their production function

The lowest possible level of profits—total revenue minus total costs—given their production function

Achieving the highest possible level of market share

Achieving the highest possible level of production

Answer

Correct Answer: The highest possible level of profits—total revenue minus total costs—given their production function

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25. What is the goal of a firm that is profit maximizing?

To break even

To minimize losses

To achieve the highest possible level of profits

To sell the most units

Answer

Correct Answer: To achieve the highest possible level of profits

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26. What is the production possibilities curve?

A curve showing the maximum combinations of production of two goods that are possible, given the economy’s resources.

A curve showing the maximum amount of one good that can be produced, given the production of the other good.

A curve showing the optimum combinations of production of two goods that are possible, given the economy’s resources.

A curve showing the minimum combinations of production of two goods that are possible, given the economy’s resources.

Answer

Correct Answer: A curve showing the maximum combinations of production of two goods that are possible, given the economy’s resources.

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27. What is the term for a curve showing the maximum combinations of production of two goods that are possible, given the economy’s resources?

Stagflation

Economic growth

Production possibilities curve

Phillips curve

Answer

Correct Answer: Production possibilities curve

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28. What is "opportunity cost"?

The value of everything that could have been produced with the resources used

The cost incurred when an opportunity is taken

The value of what is given up when an alternative is chosen

The value of the next-best forgone alternative that was not chosen because something else was chosen.

Answer

Correct Answer: The value of the next-best forgone alternative that was not chosen because something else was chosen.

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29. What is normative economics?

A branch of economics that deals with the distribution of income and wealth

A branch of applied economics that deals with the efficiency of economic systems

Economic analysis that makes recommendations about economic policy.

Economic analysis that assesses the impact of economic policy

Answer

Correct Answer: Economic analysis that makes recommendations about economic policy.

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30. What is normal profits?

The amount of accounting profits when economic profits are equal to zero.

The amount of accounting profits when economic losses are equal to zero.

The amount of accounting losses when economic profits are equal to zero.

The amount of accounting losses when economic losses are equal to zero.

Answer

Correct Answer: The amount of accounting profits when economic profits are equal to zero.

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31. What is the amount of accounting profits when economic profits are equal to zero?

Abnormal profits

Normal profits

Supernormal profits

Subnormal profits

Answer

Correct Answer: Normal profits

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32. What is a normal good?

A good that is not a necessity.

A good for which demand is not affected by income.

A good for which demand increases when income rises and decreases when income falls.

A good for which demand decreases when income rises and increases when income falls.

Answer

Correct Answer: A good for which demand increases when income rises and decreases when income falls.

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33. What is the definition of "multilateral negotiations"?

More than two nations, but not all of them are present at the same time

Simultaneous tariff reductions on the part of many countries

Bilateral talks between two nations

Involving only a few nations

Answer

Correct Answer: Simultaneous tariff reductions on the part of many countries

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34. What is the meaning of "multilateral"?

Involving multiple countries

Difficult

Lengthy

Singular

Answer

Correct Answer: Involving multiple countries

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35. What is movement along the curve called?

Linear Translation

Rotation

Coordinate Shift

Reflection

Answer

Correct Answer: Coordinate Shift

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36. What is Moral Hazard?

A motorcycle without mufflers

The practice of engaging in sexual activity without the use of condoms

A financial crisis caused by the subprime mortgage crisis

A situation in which a person buys insurance against some risk and subsequently takes actions that increase the risks

Answer

Correct Answer: A situation in which a person buys insurance against some risk and subsequently takes actions that increase the risks

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37. What is the definition of monopsony?

A situation in which there are many buyers of a particular good or service in a given market

A situation in which there are many sellers of a particular good or service in a given market

A situation in which there is a single seller of a particular good or service in a given market

A situation in which there is a single buyer of a particular good or service in a given market

Answer

Correct Answer: A situation in which there is a single buyer of a particular good or service in a given market

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38. What does a monopoly refer to?

One firm in an industry selling a product for which there are no close substitutes.

A firm that is the only seller of a product

A firm that produces a product for which there are close substitutes

A firm that has complete control over an industry

Answer

Correct Answer: One firm in an industry selling a product for which there are no close substitutes.

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39. What is the main characteristic of monopolistic competition?

Firms selling identical products

Many firms selling differentiated products

A single firm selling a product with no close substitutes

Firms selling products in an industry with few buyers

Answer

Correct Answer: Many firms selling differentiated products

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40. What is a mixed economy?

A market economy in which the government plays a very large role

A command economy in which the government does not control all resources and production

A command economy in which the government controls all resources and production

A market economy in which the government plays no role

Answer

Correct Answer: A market economy in which the government plays a very large role

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41. What is the minimum wage?

The starting salary for a new employee.

Wage per hour below which it is illegal to pay workers.

The least amount of money a person can live on.

The lowest salary that a company can pay an employee.

Answer

Correct Answer: Wage per hour below which it is illegal to pay workers.

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42. What is the minimum efficient scale?

The largest scale of production for which long-run average total cost is at a minimum.

There is no such thing as a minimum efficient scale.

The smallest scale of production for which long-run average total cost is at a minimum.

The scale of production at which long-run average total cost is at a maximum.

Answer

Correct Answer: The smallest scale of production for which long-run average total cost is at a minimum.

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43. What is the focus of microeconomics?

Monetary policy

Economic growth

Individual decision-making at firms and households

Fiscal policy

Answer

Correct Answer: Individual decision-making at firms and households

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44. What is the Medicare?

Government health insurance program for the elderly

Health insurance for veterans

Health insurance for the rich

Insurance for the poor

Answer

Correct Answer: Government health insurance program for the elderly

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45. What is Medicare?

Medicare is a government health insurance program for the elderly.

Medicare is a government health insurance program for low-income individuals.

Medicare is a government health insurance program for the disabled.

Medicare is a government health insurance program for children.

Answer

Correct Answer: Medicare is a government health insurance program for the elderly.

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46. What is Medicaid?

A health insurance program designed primarily for families with high incomes.

A health insurance program designed primarily for families with low incomes.

A health insurance program designed primarily for the elderly.

A health insurance program not available to families with low incomes.

Answer

Correct Answer: A health insurance program designed primarily for families with low incomes.

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47. What does the median voter theorem state?

That the median or middle of economic preferences will be reflected in government decisions.

That the majority of political preferences will be reflected in government decisions.

That the mode or middle of political preferences will be reflected in government decisions.

That the median or middle of political preferences will be reflected in government decisions.

Answer

Correct Answer: That the median or middle of political preferences will be reflected in government decisions.

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48. What is the law of supply?

The tendency for the quantity supplied of a good in a market to decrease as its price falls.

The tendency for the quantity supplied of a good in a market to decrease as its price rises.

The tendency for the quantity supplied of a good in a market to increase as its price rises.

The tendency for the quantity supplied of a good in a market to stay the same as its price rises.

Answer

Correct Answer: The tendency for the quantity supplied of a good in a market to increase as its price rises.

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49. What is the law of demand?

The tendency for the quantity demanded of a good in a market to rise as its price rises.

The tendency for the quantity demanded of a good in a market to decline as its price rises.

The quantity demanded of a good in a market is not affected by price changes.

The tendency for the quantity demanded of a good in a market to rise as its price declines.

Answer

Correct Answer: The tendency for the quantity demanded of a good in a market to decline as its price rises.

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50. The law of demand states that the quantity demanded of a good in a market will _____ as its price rises.

Fluctuate

Decline

Rise

Remain the same

Answer

Correct Answer: Decline

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51. What is a labor union?

A group of workers who are paid less than the minimum wage.

A coalition of workers, organized to improve the wages and working conditions of the members.

A group that is in favor of socialism

A group that is in favor of capitalism

Answer

Correct Answer: A coalition of workers, organized to improve the wages and working conditions of the members.

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52. What is an industrial union?

A union organized across industries, whose members come from a variety of occupations.

A union organized within a given industry, whose members come from the same occupation.

A union organized within a given industry, whose members come from a variety of occupations.

A union organized across industries, whose members come from the same occupation.

Answer

Correct Answer: A union organized within a given industry, whose members come from a variety of occupations.

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53. Where is the individual demand curve located?

On the y-axis

To the left of the y-axis

In the middle of the graph

On the x-axis

Answer

Correct Answer: On the y-axis

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54. What is an indifference curve?

A curve showing the income of the consumer

A curve showing the combinations of two goods that leave the consumer with the same level of utility

A curve showing the budget line of the consumer

A curve showing the combinations of two goods that the consumer is indifferent to

Answer

Correct Answer: A curve showing the combinations of two goods that leave the consumer with the same level of utility

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55. What does an indifference curve show?

The combinations of two goods that leave the consumer with the same level of utility

The budget line for a consumer

The set of all points where marginal utility is equal to zero

The set of all points where utility is maximized

Answer

Correct Answer: The combinations of two goods that leave the consumer with the same level of utility

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56. What is a situation in which producing more of one good requires giving up an increasing amount of production of another good?

Decreasing opportunity cost

Fixed opportunity cost

Increasing opportunity cost

Negative opportunity cost

Answer

Correct Answer: Increasing opportunity cost

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57. What is income inequality?

The amount of money a person earns in a day.

The amount of money a person has after taxes.

Disparity in levels of income among individuals in the economy.

The amount of money a person saves in a year.

Answer

Correct Answer: Disparity in levels of income among individuals in the economy.

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58. What is the income elasticity of demand?

The percentage change in quantity demanded of a good divided by the percentage change in income.

The percentage change in quantity demanded of a good multiplied by the percentage change in income

The percentage change in quantity demanded of a good subtracted from the percentage change in income.

The percentage change in quantity demanded of a good added to the percentage change in income

Answer

Correct Answer: The percentage change in quantity demanded of a good divided by the percentage change in income.

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59. What is human capital?

A person's money

A person's accumulated knowledge and skills

A person's physical labour

A person's land and buildings

Answer

Correct Answer: A person's accumulated knowledge and skills

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60. What do housing assistance programs provide subsidies for?

Providing housing for contractors

Building low-income housing

Renting housing for low-income families

Both renting housing for low-income families and building low-income housing

Answer

Correct Answer: Both renting housing for low-income families and building low-income housing

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61. What is GDP?

The value of all the goods and services produced in an economy over time

The value of all the goods and services in an economy during a specified period of time

The value of all the goods and services consumed in an economy during a specified period of time

The value of all the goods and services newly produced in an economy during a specified period of time

Answer

Correct Answer: The value of all the goods and services newly produced in an economy during a specified period of time

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62. What is government failure?

A situation in which the government makes things the same as the market, even though there may be market failure.

A situation in which the government makes things better than the market, even though there may be market failure.

A situation in which the government makes things worse than the market, even though there may not be market failure.

A situation in which the government makes things worse than the market, even though there may be market failure.

Answer

Correct Answer: A situation in which the government makes things worse than the market, even though there may be market failure.

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63. Which of the following is not a type of fringe benefit?

Direct money payments

Vacation time

Retirement benefits

Insurance

Answer

Correct Answer: Direct money payments

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64. What are some examples of fringe benefits?

Salary, health insurance, 401k, and vacation time

Health insurance, 401k, dental insurance, and life insurance

Insurance, retirement benefits, vacation time, and maternity and sick leave

Health insurance, retirement benefits, vacation time, and sick leave

Answer

Correct Answer: Insurance, retirement benefits, vacation time, and maternity and sick leave

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65. Prices that are determined by the individuals and firms interacting in markets are what?

Determined by the firm

Determined by the government

Freely determined prices

Determined by the market

Answer

Correct Answer: Freely determined prices

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66. What are "freely determined prices"?

Lack of competition in markets

Prices that are determined by the individuals and firms interacting in markets.

Tabulations of historical prices

Centrally planned economies

Answer

Correct Answer: Prices that are determined by the individuals and firms interacting in markets.

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67. What is an FTA?

An area that has no trade barriers between the countries and no other type of economic activity.

An area that has no trade barriers between the countries in the area.

An area that has no trade barriers between the countries and no other restrictions.

An area where only free trade is allowed.

Answer

Correct Answer: An area that has no trade barriers between the countries in the area.

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68. What is the equilibrium risk-return relationship?

The relationship between the risk and the standard deviation of return on an asset

The negative relationship between the risk and the expected rate of return on an asset

There is no relationship between the risk and the expected rate of return on an asset

The positive relationship between the risk and the expected rate of return on an asset

Answer

Correct Answer: The positive relationship between the risk and the expected rate of return on an asset

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69. What is the equilibrium quantity?

The quantity that results in a surplus at the equilibrium price.

The quantity traded at the equilibrium price.

The quantity supplied at the equilibrium price.

The quantity demanded at the equilibrium price.

Answer

Correct Answer: The quantity traded at the equilibrium price.

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70. What is the equilibrium price?

The lowest possible price

The price at which quantity supplied equals quantity demanded.

The average price over time

The highest possible price

Answer

Correct Answer: The price at which quantity supplied equals quantity demanded.

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71. What is an emission tax?

A tax on the purchase of pollution-emitting vehicles

A charge made to firms that pollute the environment based on the quantity of pollution they emit.

A tax on the pollution emitted by firms

A tax designed to encourage firms to pollute the environment

Answer

Correct Answer: A charge made to firms that pollute the environment based on the quantity of pollution they emit.

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72. What is the demand for which the price elasticity is greater than 1?

Unitary elastic demand

Inelastic demand

Elastic demand

Diminishing returns to scale

Answer

Correct Answer: Elastic demand

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73. When did the Doha Development Round negotiations open?

November 2001

January 2002

October 2001

September 2001

Answer

Correct Answer: November 2001

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74. What is the definition of division of labor?

The division of production into various parts in which different groups of workers specialize.

The process by which a society is divided into distinct social classes.

A system of economic production and exchange based on market principles.

Answer

Correct Answer: The division of production into various parts in which different groups of workers specialize.

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75. What is the division of labor?

The division of workers into various parts in which different groups of managers specialize

The division of workers into various parts in which different groups of production specialize

The division of production into various parts in which different groups of workers specialize

The division of managers into various parts in which different groups of workers specialize

Answer

Correct Answer: The division of production into various parts in which different groups of workers specialize

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76. What is the dividend yield?

The percentage of the stock that is dividend.

The price of the stock stated as a percentage of the dividend.

The dividend stated as a percentage of the price of the stock.

The dividend stated as a percentage of the price of the bond.

Answer

Correct Answer: The dividend stated as a percentage of the price of the stock.

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77. What is a diseconomy of scale?

A situation in which short-run average total cost decreases as the output of a firm increases.

A situation in which long-run average total cost remains the same as the output of a firm increases.

A situation in which long-run average total cost decreases as the output of a firm increases.

A situation in which long-run average total cost increases as the output of a firm increases.

Answer

Correct Answer: A situation in which long-run average total cost increases as the output of a firm increases.

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78. What is the process of discounting?

Science

Translating a future payment into a value in the present.

Art

Math

Answer

Correct Answer: Translating a future payment into a value in the present.

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79. What is the present discounted value?

The value of a future payment discounted at an interest rate

The value of a past payment not discounted at an interest rate

The value of a future payment not discounted at an interest rate

The value of a past payment discounted at an interest rate

Answer

Correct Answer: The value of a future payment discounted at an interest rate

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80. What is the discount rate?

The interest rate charged on loans by the central bank

The rate at which commercial banks lend to one another

An interest rate used to discount a future payment when computing present discounted value.

An interest rate used to discount a future payment when computing present value.

Answer

Correct Answer: An interest rate used to discount a future payment when computing present discounted value.

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81. What is a customs union?

A free trade area with a common external tariff.

An economic and political union of countries

A free trade agreement between countries

Answer

Correct Answer: A free trade area with a common external tariff.

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82. What does the Current Population Survey measure?

The number of immigrants entering the U.S.

The number of deaths in the U.S.

The number of births in the U.S.

Employment, unemployment, the labor force, and other characteristics of the U.S. population.

Answer

Correct Answer: Employment, unemployment, the labor force, and other characteristics of the U.S. population.

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83. Cross-price elasticity of demand is the percentage change in what, divided by the percentage change in the price of another good?

The quantity demanded of all goods

The price of one good

The price of all goods

The quantity demanded of one good

Answer

Correct Answer: The quantity demanded of one good

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84. What is a craft union?

A union organized to represent a single occupation, whose members come from a variety of industries.

A union organized to represent a single occupation, whose members come from a single industry.

A union organized to represent multiple occupations, whose members come from a single industry.

A union organized to represent a single industry, whose members come from a variety of occupations.

Answer

Correct Answer: A union organized to represent a single occupation, whose members come from a variety of industries.

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85. What is a coupon?

A bondholder

The fixed amount that a borrower agrees to pay to the bondholder each year.

The amount of money needed to purchase a bond.

The variable amount that a borrower agrees to pay to the bondholder each year

Answer

Correct Answer: The fixed amount that a borrower agrees to pay to the bondholder each year.

Note: This Question is unanswered, help us to find answer for this one

86. How many members are on the Council of Economic Advisers?

Three

Four

Five

Six

Answer

Correct Answer: Three

Note: This Question is unanswered, help us to find answer for this one

87. What is cost-benefit analysis?

A method of appraisal that equalizes the costs and benefits of a project.

A project that has more costs than benefits.

An appraisal of a project based on the costs and benefits derived from it.

A project that has more benefits than costs.

Answer

Correct Answer: An appraisal of a project based on the costs and benefits derived from it.

Note: This Question is unanswered, help us to find answer for this one

88. What is a corporate income tax?

A tax on the workforce of corporations.

A tax on the retail income of corporations.

A tax on the physical income of corporations.

A tax on the accounting profits of corporations.

Answer

Correct Answer: A tax on the accounting profits of corporations.

Note: This Question is unanswered, help us to find answer for this one

89. What is a cooperative outcome?

An outcome of a game where the players involved can each choose their own payoff.

An outcome of a game where one player unilaterally decides what the other player receives

An equilibrium in a game where the players agree to cooperate.

An equilibrium in a game where the players do not communicate with each other

Answer

Correct Answer: An equilibrium in a game where the players agree to cooperate.

Note: This Question is unanswered, help us to find answer for this one

90. What is convergence of positions?

The concentration of the stances of political parties around the center of citizens' opinions.

The formation of new political parties in the center of the political spectrum.

The separation of the stances of political parties from the center of citizens' opinions.

The alignment of the stances of political parties with the center of citizens' opinions.

Answer

Correct Answer: The concentration of the stances of political parties around the center of citizens' opinions.

Note: This Question is unanswered, help us to find answer for this one

91. What is a controlled experiment?

A test of a theory in which particular effects cannot be isolated.

An empirical test of a theory in a controlled setting in which particular effects can be isolated.

A test of a theory that can only be conducted in a controlled setting.

A test of a theory that cannot be conducted in a controlled setting.

Answer

Correct Answer: An empirical test of a theory in a controlled setting in which particular effects can be isolated.

Note: This Question is unanswered, help us to find answer for this one

92. What is a contestable market?

A market in which firms are not able to compete.

A market in which the threat of competition is enough to encourage firms to act like competitors.

A market in which there is no competition.

A market in which firms are not required to compete.

Answer

Correct Answer: A market in which the threat of competition is enough to encourage firms to act like competitors.

Note: This Question is unanswered, help us to find answer for this one

93. What does a budget line show?

The least expensive items in a grocery store

The minimum amount of money necessary to purchase two goods

The maximum combinations of two goods that it is possible for a consumer to buy

The most popular items in a grocery store

Answer

Correct Answer: The maximum combinations of two goods that it is possible for a consumer to buy

Note: This Question is unanswered, help us to find answer for this one

94. What is budget constraint?

The money a person has to spend on a product.

An income limitation on a person's expenditure on goods and services.

The amount of money a person has to spend in a day.

A limit on how much a person can spend on unnecessary things.

Answer

Correct Answer: An income limitation on a person's expenditure on goods and services.

Note: This Question is unanswered, help us to find answer for this one

95. What is a budget constraint?

An income that is just enough to live on and cannot be used for other purposes

A way to save money by cutting back on unnecessary expenditure

A limit on how much a person can spend in a day

An income limitation on a person’s expenditure on goods and services.

Answer

Correct Answer: An income limitation on a person’s expenditure on goods and services.

Note: This Question is unanswered, help us to find answer for this one

96. What is the formula for average variable cost?

Variable costs divided by fixed costs

Quantity produced divided by variable costs

Fixed costs divided by quantity produced

Variable costs divided by the quantity produced

Answer

Correct Answer: Variable costs divided by the quantity produced

Note: This Question is unanswered, help us to find answer for this one

97. What does AVC stand for?

Average variable country

Average variable cost

Average variable control

Average variable command

Answer

Correct Answer: Average variable cost

Note: This Question is unanswered, help us to find answer for this one

98. What is average total cost pricing?

A regulatory method that stipulates that the firm charge a price that equals average total cost.

A method of pricing whereby the firm charges a price that is greater than average total cost.

A method of pricing that is not regulated by the government.

A method of pricing whereby the firm charges a price that is less than average total cost.

Answer

Correct Answer: A regulatory method that stipulates that the firm charge a price that equals average total cost.

Note: This Question is unanswered, help us to find answer for this one

99. What does ATC stand for?

Fixed cost

Average total cost

Average variable cost

Marginal cost

Answer

Correct Answer: Average total cost

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100. What is the average tax rate?

The total tax paid divided by the total non-taxable income.

The total tax paid divided by the total taxable income.

The total tax paid minus the total taxable income.

The total tax paid multiplied by the total taxable income.

Answer

Correct Answer: The total tax paid divided by the total taxable income.

Note: This Question is unanswered, help us to find answer for this one

101. What is average revenue?

Total revenue multiplied by quantity

Quantity divided by total revenue

Total revenue divided by quantity

Quantity multiplied by total revenue

Answer

Correct Answer: Total revenue divided by quantity

Note: This Question is unanswered, help us to find answer for this one

102. What is average fixed cost?

Fixed costs divided by the quantity produced

Total costs divided by the quantity produced

Marginal cost divided by the quantity produced

Variable costs divided by the quantity produced

Answer

Correct Answer: Fixed costs divided by the quantity produced

Note: This Question is unanswered, help us to find answer for this one

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