Economics Quiz

What is the basic goal of economics according to the document?

• Maximizing total cost

• Finding the "best" solution

• Minimizing total benefit

• Increasing marginal cost

What does MB stand for in the context of the document?

• Marginal Benefit

• Maximum Benefit

• Marginal Base

• Minimum Benefit

What is the shape of the TC area for 55 units in marginal analysis?

• Trapezoid OABC

• Triangle OBC

• Rectangle OABC

• Circle OBC

How is net marginal benefit (NMB) calculated?

• NMB = MB + MC

• NMB = MB - MC

• NMB = TB - TC

• NMB = TC - MB

The number of units that will maximize your total benefit (TB) is _____ units.

• 0

• 5

• 8

• 10

• 12

The deadweight loss from having 5 units of the activity is

• OJK

• JRWN

• KNW

• NK

• RW

The optimal number of units of this activity is _____ units.

• 0

• 5

• 8

• 10

• 12

Graph showing marginal benefit and marginal cost

• Marginal benefit is always greater than marginal cost

• Marginal cost is always greater than marginal benefit

• Marginal benefit equals marginal cost at equilibrium

• Marginal benefit and marginal cost are unrelated