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WorksheetsEconomics Concepts Quiz
Total questions: 10
Worksheet time: 5mins
Which economic concept refers to the highest level of satisfaction that individuals and organizations seek to attain from their economic decisions?
Productive efficiency
Market power
Utility maximisation
Marginal utility
What is the main goal of productive efficiency?
Maximizing output by any means necessary
Minimizing the cost of production
Optimizing the use of resources to produce the maximum output
Increasing revenue by selling more units
What is the significance of market power?
The additional costs of producing one more unit of output
The extra utility derived from consuming one more unit of a good or service
The ability to influence or control the terms and condition on which goods are bought and sold
The ability to produce maximum output at the lowest possible cost
What does marginal utility refer to?
Producing maximum output at the lowest possible cost
Influencing the terms and conditions of buying and selling goods
Deriving extra utility from consuming one more unit of a good or service
Gaining additional revenue from selling one extra unit in a period of time
What is marginal cost?
The additional costs of producing one more unit of output
The extra utility derived from consuming one more unit of a good or service
The ability to influence or control the terms and condition on which goods are bought and sold
The ability to produce maximum output at the lowest possible cost
What does marginal revenue refer to?
Deriving extra utility from consuming one more unit of a good or service
Influencing the terms and conditions of buying and selling goods
Producing maximum output at the lowest possible cost
Gaining additional revenue from selling one extra unit in a period of time
What is allocative efficiency?
The level of output where marginal cost is equal to average revenue
A market structure where many firms offer a homogeneous product
The total amount of money earned by a firm by selling goods and services in a given time period
The inefficient allocation of resources in a free market
Which of the following best describes perfect competition?
The inefficient allocation of resources in a free market
A market structure where many firms offer a homogeneous product
The level of output where marginal cost is equal to average revenue
The total amount of money earned by a firm by selling goods and services in a given time period
What does total revenue refer to?
The level of output where marginal cost is equal to average revenue
The inefficient allocation of resources in a free market
A market structure where many firms offer a homogeneous product
The total amount of money earned by a firm by selling goods and services in a given time period
What is market failure?
The level of output where marginal cost is equal to average revenue
A market structure where many firms offer a homogeneous product
The total amount of money earned by a firm by selling goods and services in a given time period
The inefficient allocation of resources in a free market
