Site MapHelpFeedbackMultiple Choice Quiz
Multiple Choice Quiz
(See related pages)

1.
Which of the following factors of production is likely to be fixed in the short run?
A)The location of the firm.
B)The number of employee-hours.
C)The amount of electricity consumed.
D)The amount of paper used.
E)The amount of water consumed through office water coolers.
2.
A price taker confronts a demand curve for his/her output that is
A)vertical at the market price.
B)upward sloping.
C)downward sloping.
D)horizontal at the market price.
E)elastic.
3.
When the marginal return to the use of a variable factor of production is diminishing, the firm's marginal cost curve is
A)upward sloping.
B)convex.
C)parallel to the vertical axis.
D)downward sloping.
E)concave.
4.
The common objective that in economics is assumed to be shared by all private sector capitalist firms is to
A)be a responsible member of the community.
B)provide the minimum amount of customer service possible.
C)maximize profits.
D)treat workers fairly.
E)be environmentally friendly.
5.
Suppose a perfectly competitive firm is making a loss, but decides that (for the moment) it is not going to shut down. It should choose the output for which
A)total costs are minimized.
B)price equals marginal costs.
C)total revenues are maximized.
D)the costs of the variable factors of production are minimized.
E)price is greater than marginal costs.
6.
Which of the following is not a characteristic of a perfectly competitive market?
A)All firms sell the same standardized product.
B)The market has many buyers and sellers.
C)Productive resources are mobile.
D)There are high barriers to entry.
E)Buyers and sellers are well informed.
7.
In which of the following short run scenarios should a firm shut down?
A)Price is less than average cost.
B)Price is less than marginal cost.
C)Price is less than average variable cost.
D)Price is less than average fixed cost.
E)Price is less than average revenue.
8.
Which of the following is not a determinant of supply?
A)Technology
B)Consumers' income.
C)Input prices.
D)The number of suppliers.
E)Expectations.
9.
The amount by which price received for a unit of output exceeds the seller's reservation price is called
A)producer surplus.
B)profit.
C)consumer surplus.
D)net surplus.
E)reservation surplus.
10.
Consider a market for wheat which has an equilibrium price of €50/tonne and an equilibrium quantity of 1000 tonnes per day. Suppose the minimum price the farmers are willing to accept to produce wheat at all is €10/tonne. The supply curve is a straight line. How much producer surplus do the farmers in this market reap?
A)€5,000
B)€30,000
C)€25,000
D)€40,000
E)€20,000





To learn more about the book this website supports, please visit its Information Center.
(c)2006 McGraw-Hill Education Europe
Any use is subject to the Terms of Use and Privacy Policy.
McGraw-Hill Education Europe is one of the many fine businesses of The McGraw-Hill Companies.


Principles of EconomicsOnline Learning Center

Home > Chapter 6 > Multiple Choice Quiz