Microeconomics

If there are two goods with positive prices and the price of one good is reduced, while income and other prices remain constant, then the size of the budget set is reduced.

• True

• False

The graph represents: Demand or Supply?

• Demand
• Supply

Elastic or Inelastic

• Elastic
• Inelastic

Refers to all plots of ground and other natural resources used in the production of goods and services.

• Land

• Labor

• Entrepreneurial Ability

• Capital

The income elasticity of demand is a measure of the:

• relative responsiveness of quantity demanded to changes in income.

• absolute change in demand yielded by an absolute change in income.

• slope of the income-consumption curve.

• negative slope of a market demand curve.

Total Costs / Quantity = _____

• Marginal Cost
• Average Total Cost
• Implicit Cost
• Explicit Cost

Change in Total Revenue/Change in Quantity
ΔTR/ΔQ = _____

• Marginal cost
• Marginal Revenue
• Profit
• Marginal Profit

Change in Total Revenue/Change in Quantity
ΔTR/ΔQ = _____

• Marginal cost
• Marginal Revenue
• Profit
• Marginal Profit

Which of the following is the best definition of costs?

• The total amount of income a business makes from selling products or services.

• The amount of money a business has left over after paying for materials.

• The total amount of money a business spends.

Any individual who purchases goods and services from the market for his/her end-use is called a..................

• Customer

• Purchaser

• Consumer

• All these