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14. The maximum price a consumer is willing to pay for a good is the Consumer surplus b. The value of the good Individual demand d. Marginal utility of the good 15. The branch of economics that studies the economy as a whole is called a. Macroeconomics b. Microeconomics Keynesian economics d. Positive economics Normative economics 16. The determination of prices in individual markets is primarily a concern of a. Positive economics b. Negative economics c. Macroeconomics d. Microeconomics 17. A market shortage is: a. The amount by which the quantity demanded exceeds the quantity supplied at a b. given price Excess demand C. A situation in which market price does not equal equilibrium price d. All of the above 18. The marginal product of labour can be measured a) as the slope of a straight line from the origin to a point on the total product curve b) as the slope of the total product curve c) as the slope of the marginal product curve d) as the change in total product divided by the change in labour input 19. The relationship between factors of production used in the production of goods and services and output is called a a. Production-possibilities curve b. Production function Production boundary d. Production-possibilities boundary 20. An increase in income will a. Cause the price of mangoes to fall if mangoes are inferior goods b. Cause the price of mangoes to rise if mangoes are inferior goods C. Cause the quantity of mangoes traded to decline if mangoes are inferior goods d. Cause a decrease in supply for mangoes whether or not mangoes are inferior goods 21: If a competitive firm is producing an output at which price is less than average total cost, the firm (a) Should shut down (b) Is breaking even (c) Is experiencing economic losses but should continue to operate as long as price is above minimum average fixed cost (d) Is experiencing economic losses but should continue to operate as long as price is above minimum average variable cost 22. External economies are factors beyond the control of an individual firm which (a) Lower its average revenue as industry output rises (b) Raise its costs as industry output rises (c) Lower its costs as industry output rises (d) Raise its profit as industry output rises

14. The maximum price a consumer is willing to pay for a good is the
Consumer surplus
b.
The value of the good Individual demand
d.
Marginal utility of the good
15. The branch of economics that studies the economy as a whole is called a.
Macroeconomics
b.
Microeconomics
Keynesian economics
d. Positive economics
Normative economics
16. The determination of prices in individual markets is primarily a concern of
a.
Positive economics
b. Negative economics
c.
Macroeconomics
d. Microeconomics
17. A market shortage is:
a. The amount by which the quantity demanded exceeds the quantity supplied at a b.
given price
Excess demand
C.
A situation in which market price does not equal equilibrium price
d.
All of the above
18. The marginal product of labour can be measured
a) as the slope of a straight line from the origin to a point on the total product curve
b) as the slope of the total product curve
c) as the slope of the marginal product curve
d) as the change in total product divided by the change in labour input
19. The relationship between factors of production used in the production of goods and services and output is called a
a.
Production-possibilities curve
b. Production function
Production boundary
d.
Production-possibilities boundary
20. An increase in income will
a. Cause the price of mangoes to fall if mangoes are inferior goods
b. Cause the price of mangoes to rise if mangoes are inferior goods
C. Cause the quantity of mangoes traded to decline if mangoes are inferior goods d.
Cause a decrease in supply for mangoes whether or not mangoes are inferior goods
21: If a competitive firm is producing an output at which price is less than average total cost, the firm
(a) Should shut down
(b) Is breaking even
(c) Is experiencing economic losses but should continue to operate as long as price is above minimum average fixed cost
(d) Is experiencing economic losses but should continue to operate as long as price is above minimum average variable cost
22. External economies are factors beyond the control of an individual firm which
(a) Lower its average revenue as industry output rises
(b) Raise its costs as industry output rises
(c) Lower its costs as industry output rises
(d) Raise its profit as industry output rises

Added by Kingsley O.

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