Microeconomics-Oct. 4, 2021

Economic problem arises due to

• Limited resources

• Unlimited wants

• Alternative uses of resources

• All of the above

Self interest of the consumers lies in the maximization of

• Profit

• Sales

• Satisfaction

• Wealth

Which point on the curve is an efficient use of resources?

• F

• D

• E

• A

Monopolistic competition is a type of

• price discrimination

• market structure

• advertising strategy

• oligopoly

An equilibrium price will NOT change unless?

• either demand & supply change (or both)

• both demand & supply change

• only demand changes

• only supply changes

A good that is used in place of another good to meet the same need is called

• complementary good.

• capital good.

• substitute good.

• consumer good.

Demand is defined as consumers' _____ and _____ to consume a good.

• Ability; need

• Willingness; ability

• Willingness; need

• Want; need

Large number of buyers and sellers are the characteristics of which type of market

• Perfect competition

• Monopoly

• Monopolistic competition

• Oligopoly

Basic Economic Problem: Mismatch of unlimited wants and needs and unlimited economic resources.

• True
• False

For the law of demand, as price rises, what happens to quantity demanded?

• it goes up
• it goes down
• it stays the same
• it is not effected