Chapter 6:
Prices and Decision Making
1.
The amount of a product that would be offered for sale at all possible prices that could prevail in the market is called __________.
a.
supply
b.
demand
c.
.
d.
market product
2.
From the quantities offered at various prices by all firms, you can derive _________.
a.
the demand supply curve
b.
the market supply curve
c.
the individual demand curve
d.
the individual supply curve
3.
The __________ schedule is a listing that shows the various quantities of a particular product supplied at all possible prices in the market.
a.
product quantity
b.
demand
c.
supply
d.
scarcity
4.
For a decrease in supply to occur, less would be offered for sale at each and every price, and the supply curve would __________.
a.
shift downward
b.
remain the same
c.
shift to the right
5.
The three stages of production are Stage I __________, Stage II: __________, and Stage III: __________.
a.
increasing returns, diminishing returns, negative returns
b.
diminishing returns, negative returns, increasing returns
c.
increasing returns, negative returns, diminishing returns
d.
negative returns, diminishing returns, increasing returns
6.
The theory of __________ deals with the relationship between the factors of production and the output of goods and services.
a.
scarcity
b.
production
c.
opportunity cost
d.
economics
7.
One kind of cost is __________ cost, the cost that a business incurs even if the plant is idle and output is zero.
a.
fixed
b.
variable
c.
marginal
d.
total
8.
The most important measure of revenue is __________ revenue, the extra revenue associated with the production and sale of one additional unit of output.
a.
extra
b.
variable
c.
marginal
d.
additional
9.
As more workers are added, the business reaches the __________ point, the total output or total product the business needs to sell in order to cover its total costs.
a.
break-even
b.
profit-maximizing
c.
profit-minimizing
d.
total cost
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Unit 1
Unit 2
Unit 3
Unit 4
Unit 5
Chapter 1
Chapter 2
Chapter 3
Chapter 4
Chapter 5
Chapter 6
Chapter 7
Chapter 8
Chapter 9
Chapter 10
Chapter 11
Chapter 12
Chapter 13
Chapter 14
Chapter 15
Chapter 16
Chapter 17
Chapter 18
Chapter 19
Chapter 20
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