1. ____ buy goods because they get satisfaction from them.

a) Consumers

b) Household

c) Traders

d) Consumption

 

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2. The substitution and____ effect of price change on quantity demanded.

a) Price

b) Savings

c) Income 

d) Investment

 

 

 

3. When____ Smith was referring to “value in use,” he was actually referring to the concept of total utility.

 a) Abraham

b) Alibaba

c) Andron

d) Adam

 

 

4. The more income the consumer has to____ the greater number of the commodity bundles that are affordable. 

a) Invest

b) Spend

c) Save

d) Accumulate

 

 

5. _____ competition means there are few, if any, barriers to entry for new companies, and prices are determined by supply and demand

a) Perfect

b) Imperfect

c) Semi-perfect

d) Solo-perfect

 

 

6. _____ tend to rely on secondary information such as where a person lives (postal codes).

a) Monopolistic  

b) Oligopoly

c) Duopoly

d) Monopolists

 

 

 

7. Firms operating in markets other than those of perfect competition are able to increase their profits by engaging in ____ discrimination

a) Demand

b) Price

c) Demand

d) Supply

 

 

8. Market power means that the firm has control over the terms and

conditions of _____.

a) Trade

b) Market

c) Transactions

d) Exchange 

 

 

9. organization of Petroleum Exporting _____ (OPEC).

a) Contemporary

b) Countries 

c) Confection

d) Community  

 

 

 

10. The consumer is considered to be a rational person, who tries to spend

his or her money to derive the maximum amount of satisfaction, or

utility, from it.

a) Income

b) Money

c) Profit

d) Investment

 

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11. The marginal productivity theory of distribution determines the prices of

factors of ____.

a) Production 

b) Distribution

c) Supply

d) Demand

 

 

 

12. The concept of consumer equilibrium can be used to explain the

negative _____ of a consumer’s demand curve.

a) Slope

b) Slide

c) Sect

d) Shift

 

 

13. The parallel _____ in budget line indicate a real income change

a) Slope

b) Slide

c) Sect

d) Shift

 

 

14. Adam Smith in his book, The _____ of Nation attempted to make a

theory of value that explained why different goods had different market

values.

a) Will

b) War

c) Weigh

d) Wealth

 

 

15. An increase in income would be portrayed as a parallel shift outwards of the____

a) Savings

b) Investment

c) Budget

d) Consumption

 

 

16. A monopoly is a market structure that consists of only ____ seller or producer.

a) One 

b) Two

c) Three

d) Half

 

 

17. The theory of distribution is an attempt to explain how ____ is distributed among the factors of production.

a) Money

b) Profit

c) Tax

d) Income

 

 

18. ____ productivity refers to per unit productivity of a variable factor.

a) Semi

b) Average 

c) Marginal

d) Total

 

 

19. When MPP is multiplied by price, it is called value of ____ product (VMP).

a) Minimal

b) Medium

c) Marginal 

d) Marble

 

 

20. It is a known fact that the _____ for factors is a derived demand.

a) Demand 

b) Distribution

c) Dispersal

d) Dissemination  

 

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21. An individual consumer wants to get all to maximize their total ____

a) Investment

b) Utility

c) Utilization

d) Production

 

 

22. Convexity is based on the notion that as a consumer consumes more and more of a particular good, the additional utility obtained _____.

a) Decreases

b) Increase

c) Slide

d) Shift

 

 

23. A ____ competitive firm is similar to a monopoly in that it produces a product that is different from that produced by all other firms in the market.

a) Oligopolistic

b) Duopolistic

c) Capitalistic

d) Monopolistic 

 

 

24. The nature of ____ in relation to the Cost Supply of goods is dependent on the cost of producing such goods and services.

a) Distribution

b) Demand

c) Supply 

d) Purchase

 

 

 

 

25. Exploitation of _____ refers to a situation in which it is at a price that is less than its marginal productivity.

a) Determinants

b) Factor

c) Elements

d) Targets

 

 

26. Average factor cost is the price of the factor concerned with labour.

a) Price

b) Quality

c) Quantity

d) Availability

 

 

27. _____ is a market situation in which there is only one buyer of the factors of production. 

a) Monopoly

b) Monopsony

c) Monopolistic

d) Monology  

 

 

 

28. Average revenue_____ (ARP) is the average revenue per unit of a factor of production.

a) Production

b) Product

c) Promotion

d) Process  

 

 

29. Productivity of factor is the amount of a commodity produced per ___ of resources used.

a) Sect

b) Hundred

c) Unit

d) Quantity  

 

 

30. According to ____ Murad, the theory of factor pricing deals with the prices paid for factor services and earned by the sellers of factor of production that is the households.

a) Micheal

b) Hussain

c) Hamad

d) Anatol

 

 

31. The theory of factor pricing is the same as theory of ____.

a) Factoring

b) Distribution

c) Production

d) Utilization

 

 

32. Three of the more common methods of non-price competition are: (1) advertising, (2) product differentiation, and (3) barriers to entry

a) Competition

b) Analysis

c) Production

d) Investment

 

 

33. An oligopoly is where there are a____ sellers with similar or identical products.

a) Few

b) Many

c) Much

d) Enormous

 

 

 

34. We define ____ utility as the change in utility due to an increase in the consumption of a given good.

a) Managed

b) Moderate  

c) Mid

d) Marginal

 

 

35. _____ says that marginal utility declines as consumption increases

Convexity

Dexterity

Complexity

Convertibility

 

 

 

36. The basis of consumer behaviour is underlined by the thinking referred to as law of _____ marginal utility (LDMU)

Demanding

Disintegrating

Disseminating

Diminishing 

 

 

37 The _____ role for the budget line is to act as a price line. A price line

demonstrates the relative price of two goods.

a) Third

b) Second

c) Fourth

d) First

 

 

37. _____ structure is best defined as the structural/organizational and other characteristics of a market.

ANS. Market

 

 

38. All but one is not a type of price discrimination in the monopoly market.

a) Beginners price discrimination

b) First-degree price discrimination

c) Second-degree price discrimination

d) Third-degree price discrimination

 

 

39. Any determinant of price elasticity of demand can be used to segment _____.

a) Markets

b) Periods

c) All of the above

d) None of the above

 

 

40.  They are doubt dependent upon culture, education, and individual tastes, among a plethora of other factors.

TRUE / FALSE

 

 

41. All but one is not an examples of oligopolies

a) Crude oil

b) Electronics

c) Phone makers

d) Auto manufacturers

 

42. Market structure is the number of firms producing identical goods, which are _____ in nature.

a) Sceptical

b) Dubious

c) Homogeneous

d) None of the above

 

 

43. One of the basic assumptions of _____ curves is that the consumer buys combinations of different commodities.

a) Indifference

b) Total

c) Different

d) Utility

 

44. Consumer behaviour can also be demonstrated using indifference _____

a) Methods

b) Curves

c) Patterns

d) Logic

 

 

45. _____ utility is the total satisfaction obtained from all units of a particular commodity consumed over a period of time.

a) Marginal

b) Price

c) Cost

d) Total

 

 

 

46. Utility is defined as the level of happiness or satisfaction connected with

_____ choices.

a) Market

b) Preferred

c) Alternative

d) People

 

 

47. _____ value, is tied to how much someone is willing to pay for an additional unit of the commodity

a) Exchange

b) Stock

c) Price

d) Money

 

 

 

48. Airlines charge higher prices to business _____ who travel than to holidaymakers who travel for vacation.

a) Owners

b) Managers

c) Sectors

d) All the above

 

 

49. All but one is not the model assumptions

a) there are two firms in the market

b) they produce a homogeneous product

c) they produce annually

d) firms choose prices PA and PB simultaneously

 

 

50. A _____ constraint is an economic term referring to the combined amount of items you can afford within the amount of income available to you.

a) Budget

b) Funds

c) Cash

d) Money