Reference no: EM13177260

1. A monopolist is a:

a-price taker.

b-price setter.

c-cost maximizer.

d-quantity taker.

2. In perfectly competitive markets, if the price is _______ , the firm will _______ .

a-greater than ATC; make an economic profit

b-less than the minimum AVC; shut down

c-greater than the minimum AVC but less than ATC; continue to produce and incur a loss.

d-all of the above are true.

3.  variable that responds to a change in another variable is called a(n) _______ variable.
a-independent

b-dependent

c-theoretical

d-all of the above are true

4. In dealing with utility, we assume that the ability of consumers to purchase goods and services is:
a-infinite.

b-irrelevant.

c-limited.

d-infinitesimal.

5. The scientific method is more difficult for economists than, say, chemists, because:
a-controlled laboratory conditions are more problematic in economics.

b-it is difficult to hold other factors that may affect the variables being studied constant in economics.

c-economic conditions may change quickly and unexpectedly.

d-all of the above.

6. A determinant of the demand for a factor of production is the:
a-price of the factor.

b-marginal cost of the factor.

c-productivity of the factor.

d-quantity of the factor supplied.