Economics

A person who buys goods and services

• consumer
• entrepreneur
• resource
• currency

The place where goods and services are exchanged

• barter
• currency
• market
• resource

According to this demand curve, if the price of movie videos increases from $14 to $16, the quantity demanded will

• fall from 600 to 400
• rise from  400 to 600
• fall from 400 to 200
• rise from 200 to 400

A perfectly competitive firm is referred to as a

• price giver.

• price taker.

• price maker.

• price cutter

• price setter.

Firms break even when

• total revenue equals total variable cost.

• total revenue is positive.

• average revenue is greater than average

  total cost.

• price is less than average revenue.

• total revenue equals total cost.

2. What is an opportunity cost?

• something absent in command economy

• when goods are recycled into other goods

• when there is not a scarcity of goods and services

• the next-best alternative you give in order to do something else

Income elasticity of demand is defined as the responsiveness of

• Quantity demanded to a change in income

• Quantity demanded to a change in price

• Price to a change in income

• Income to a change in quantity demanded

The supply of a good refers to

• Stock available for sale

• Total stock in the warehouse

• Actual Production of the good

• Quantity of the good offered for sale at a particular price per unit of time

In the short run, when the output of a firm increases, its average fixed cost

• Remains constant

• Decreases

• Increases

• First decreases and then rises

On the model, points A and C......

• show decreasing levels of efficiency.
• are impossible to produce under current conditions.
• are points where resources have been used efficiently.
• can be produced only if economic growth occurs.