G8 BM2 Review Quiz

What is the relationship between inputs and outputs in the production function?

• Linear

• Exponential

• Diminishing Marginal Returns

• Constant Marginal Returns

Which cost curve shows the relationship between the quantity of output produced and the total cost of production?

• Variable Cost Curve

• Fixed Cost Curve

• Average Cost Curve

• Marginal Cost Curve

In which market structure do a large number of firms compete with each other, no single firm has market power, the firms cannot change the price and there are no entry/exit barriers?

• Perfectly Competitive Market

• Monopolistic Competition

• Monopoly

• Oligopoly

What is the difference between the price a consumer is willing to pay for a good and the price the consumer actually pays?

• Deadweight Loss

• Consumer Surplus

• Producer Surplus

• Price Ceilings

What is the difference between the price a producer receives for a good and the minimum price they are willing to accept?

• Taxes and Subsidies

• Price Floors

• Producer Surplus

• Consumer Surplus

What is the loss of economic efficiency that occurs when the equilibrium quantity is not achieved in a market?

• Producer Surplus

• Price Ceilings

• Consumer Surplus

• Deadweight Loss

What is the maximum price set by the government that can be charged for a good or service?

• Consumer Surplus

• Price Floors

• Price Ceilings

• Producer Surplus

What is the minimum price set by the government that can be charged for a good or service?

• Price Floors

• Price Ceilings

• Producer Surplus

• Consumer Surplus

What are the two main types of government intervention in markets?

• Marginal Product and Diminishing Marginal Returns

• Taxes and Subsidies

• Long-Run self adjustment and Taxes

• Price Floors and Price Ceilings

What is the additional output produced by using one more unit of a variable input?

• Marginal Product

• Fixed Cost Curve

• Marginal Cost Curve

• Average Cost Curve