FA-4-Microeconomics

Which of the following is NOT a factor influencing demand?

• the price of substitute goods

• The price of labour

• The income of consumers

• The price of complementary goods

Which of the following creates a shift in the supply curve?

• Employing more labour to work the capital.

• Cleaning and maintaining the capital.

• An increase in the cost of land.

• An increase in competition in the market.

What is opportunity cost?

• Difference between the price and the price of the next best

• Difference in production cost and selling price.

• The cost of production of the good in question.

• The price of the good in question.

On the diagram, what is the producer surplus?

• A

• B

• C

• D

Which one of the following is NOT a definition of allocative efficiency?

• When producer and consumer surplus are maximized.

• When MSC equals MSB

• When supply equals demand, taking intp account externalities

• When all consumer wants are satified

A free market is...

• One without tax on income or sales

• One without any government imposed legal restriction

• One that always operates in society's best interests

• One where price mechanism dictates prices and output

Free markets operating at allocative efficiency ensure that ...

• Everybody has everything that they want and need

• Resources are allocated in the best interests of society

• Resource allocation is unsustainable

• Everything is awesome

Which of the following goods is most likely to have highly inelastic demand?

• A litre of petrol (95 octaine fuel)

• A Mars Bar

• A Norweigian Air flight ticket

• A Hesburger

When XED is negative, the goods in question are...

• complementary goods

• Substitute goods

• Unrelated goods

• Consumer goods

When YED is negative, the good in question...

• doesn't actually exist

• is a normal good

• is a necessity

• is an inferior good