Economics Quiz 1

Opportunity cost is often associated with:

• The concept of scarcity

• Ignoring alternative choices

• Efficient resource allocation

• Unlimited resources

Which of the following best describes the concept of "Marginal Utility"?

• The overall utility derived from all possible consumption choices.

• The decrease in satisfaction when consuming more units of goods/services.

• The level of satisfaction or happiness when consuming additional units of goods/services.

• The total satisfaction received from consuming all units of goods/services.

Which of the following best describes "variable costs"?

• Expenses that remain constant regardless of the level of production or sales.

• Expenses that decrease as production or sales increase.

• Costs that fluctuate based on the number of units produced.

• Expenses that vary with the level of production or sales.

Which of the following best defines "negative marginal utility"?

• The decrease in happiness or satisfaction from consuming additional units of a product.

• The total satisfaction from consuming all units of a product.

• The increase in satisfaction when consuming more units of a product.

• The level of satisfaction from consuming fewer units of a product.

Amelia is starting a small business selling handmade candles. What is the purpose of calculating the break-even point?

What is the Law of Supply?

• True

• False

What is GDP?

Arthur and Isabella run a small café and incur the following expenses each month:

Which of these costs is a fixed cost? • Rent for the café space: $800 • Monthly insurance premium: $200 • Coffee beans: $0.50 per cup of coffee • Disposable cups: $0.10 per cup of coffee

Explain a rightward shift in demand.