If the demand for coffee decreases as income decreases, coffee is ?
A. an inferior good
B. a normal good
C. a complementary good
D. a substitute good
Economics Mcqs
When the decrease in the price of one good causes the demand for another good to decrease, the goods are_________?
When the decrease in the price of one good causes the demand for another good to decrease, the goods are_________?
A. complements
B. substitutes
C. inferior
D. nromal
The quantity demanded of Pepsi has decreased. The best explanation for this is that ?
The quantity demanded of Pepsi has decreased. The best explanation for this is that ?
A. Pepsi’s advertising is not as effective as in the past .
B. The price of Coca Cola has increased,
C. Pepsi consumers had an increase in income.
D. The price of Pepsi increased
The Setrite Corporation produce chairs. An economist working for the firm predicts that if people’s incomes rise next year, then the demand for our chairs will for our chairs will increase ceteris paribus The accuracy of the economist’s prediction depends on whether the chairs Setrite Produce ?
The Setrite Corporation produce chairs. An economist working for the firm predicts that if people’s incomes rise next year, then the demand for our chairs will for our chairs will increase ceteris paribus The accuracy of the economist’s prediction depends on whether the chairs Setrite Produce ?
A. have few substitutes.
B. are normal goods
C. have few complementary goods.
D. have many complementary goods.
If both marginal cost and marginal revenue increase, a firm ?
If both marginal cost and marginal revenue increase, a firm ?
A. Should increase output
B. Should reduce output
C. will require further information on how to respond
D. Should not change output
A firm that breaks even after all economic costs are paid is earning ?
A firm that breaks even after all economic costs are paid is earning ?
A. Economic profit
B. Accounting profit
C. Normal profit
D. Supernormal profit
If a firm wage costs increase this will cause __________ and __________?
If a firm wage costs increase this will cause __________ and __________?
A. marginal cost to increase, output to fall
B. marginal revenue to increase output to fall
C. opportunity cost to increase the firm will close
D. average cost will rise output will increase ____ output and an upward shift in marginal revenue ____ output
Profits are maximized when ?
Profits are maximized when ?
A. costs are minimized
B. revenue is maximized
C. average cost is less than average revenue
D. marginal cost equals marginal revenue
The increase in total cost when one more unit is produced is known as ?
The increase in total cost when one more unit is produced is known as ?
A. marginal cost
B. opportunity cost
C. limited cost
D. average cost
Adding up the quantities demanded of a good by different people facing the same price gives us the ?
Adding up the quantities demanded of a good by different people facing the same price gives us the ?
A. Supply curve
B. Market demand curve
C. Demand curve
D. Market supply curve