Supply and Demand

Normally a demand curve will have the shape:_________? A. Horizontal B. VerticalC. Downward Sloping D. Upward Sloping

A firm that makes profit in addition to normal profit is making ? A. Economic profit B. Accounting profit C. Normal profitD. supernormal profit

An upward shift in marginal cost _____ output and an upward shift in marginal revenue ______ output? A. reduces; reducesB. reduces; increases C. increases; increases D. increases; reduces

Marginal revenue is the ________ when output is __________? A. Change in average revenue, increasedB. Change in total revenue, increase by one unit C. change in average revenue, increased by one unit D. change in total revenue increased

Firms are assumed to ________ costs and to ________ profits? A. incur, desire B. pay, make C. charge earnsD. minimize, maximize

The extra utility from consuming one more unit of a good is called ? A. Marginal utility B. Additional utility C. Surplus utility D. Bonus utility

The opportunity cost of a student is____________? A. Course fees and rent B. A loan from the bankC. What the student could have earned in the best job available by not studying D. What the student will earn after graduation

If your income doubles and the prices of the goods you buy double then your demand for these goods will likely? A. increaseB. not change C. decrease D. shift

A measurement showing how quantity demanded varies with income is the ? A. Price elasticity of demand B. Cross-price elasticity of demand C. budget elasticity of demandD. income elasticity of demand

The price elasticity of demand measures ? A. The responsiveness of quantity demanded to a change in price B. How far a demand curve shifts C. a change in price D. a change in quantity demanded