Fun Friday - Supply/Demand/Perfect Competition

What is the goal of a firm?

• to make profits

• to maximize profits

• to maximize revenue

• none of the above

Definition of Marginal Utility

• the satisfaction from consumption

• to total satisfaction from consuming a product

• the extra satisfaction from the last unit consumed

• the extra consumption from last unit consumed

Where are factors of production (land, labor, etc) exchanged in the circular flow model?

• Factor Market

• Product Market

• Firms

• Individuals

Which of the following pairs is an example of substitutes?

• Cereal and Milk

• calculators and iPods

• Gatorade and Powerade

• water skiing and skateboarding

When the price of something increases, the quantity demanded ___?

• decreases

• reverses

• increases

• remains the same

A decrease in the price of a good will

• increase supply.
• decrease supply.
• increase quantity supplied.
• decrease quantity supplied.

Which graph below shows the SUPPLY CURVE?

• A
• B
• C
• D

The diagram represents a(n)

• increase in supply
• decrease in supply
• change in quantity supplied
• none of the above

The firm's marginal cost line is also its

• Demand Line

• Supply Line

• Life Line

• Phone Line

If your income goes up and you consume more of it

• it’s called an average good

• it’s called a standard good

• it’s called a fulfillment good

• it’s called a normal good