[{"id":213029,"question":"If marginal revenue equals marginal cost","choices":[{"text":"No profit is being made","value":"A"},{"text":"total revenue equals total cost","value":"B"},{"text":"Profits are maximized","value":"C"},{"text":"Producing another unit would increase profits","value":"D"},{"value":"E"}],"correctAnswer":3},{"id":213028,"question":"Total revenue equals","choices":[{"text":"Price Plus quantity","value":"A"},{"text":"Price multiplied by quantity sold","value":"B"},{"text":"Price divided by the quantity sold","value":"C"},{"text":"Price minus quantity sold","value":"D"},{"value":"E"}],"correctAnswer":3},{"id":213027,"question":"The profit per scale is a measure of.","choices":[{"text":"Profit","value":"A"},{"text":"Profitability","value":"B"},{"text":"Feasibility","value":"C"},{"text":"Realism","value":"D"},{"value":"E"}],"correctAnswer":2},{"id":213026,"question":"In the short term a firm will produce provided the revenue","choices":[{"text":"Covers fixed costs","value":"A"},{"text":"Covers variable costs","value":"B"},{"text":"Covers total costs","value":"C"},{"text":"Covers revenue","value":"D"},{"value":"E"}],"correctAnswer":2},{"id":213025,"question":"In the long term a firm will produce provident the revenue covers.","choices":[{"text":"Fixed costs","value":"A"},{"text":"Variable cost","value":"B"},{"text":"Total costs","value":"C"},{"text":"Revenue","value":"D"},{"value":"E"}],"correctAnswer":3},{"id":213024,"question":"If firm earn normal profits.","choices":[{"text":"They will aim to leave the industry","value":"A"},{"text":"Other firms will join the industry","value":"B"},{"text":"The revenue equals total costs","value":"C"},{"text":"No profit is made in accounting terms","value":"D"},{"value":"E"}],"correctAnswer":3},{"id":213023,"question":"If the price is less than the average cost but higher than the average variable costs.","choices":[{"text":"The firm is making a loss and will should own in the short term.","value":"A"},{"text":"The firm is making a profit.","value":"B"},{"text":"The firm is making a loss but will continue to produce in the short term","value":"C"},{"text":"The firm is making a loss and is making a negative contribution to fixed costs","value":"D"},{"value":"E"}],"correctAnswer":3},{"id":213022,"question":"If the marginal revenue is less than the marginal cost then to profit maximize a firm should.","choices":[{"text":"Reduce output","value":"A"},{"text":"Increase output","value":"B"},{"text":"Leave output where it is.","value":"C"},{"text":"Increase costs","value":"D"},{"value":"E"}],"correctAnswer":1},{"id":213021,"question":"If marginal product is below average product.","choices":[{"text":"The total product will fall","value":"A"},{"text":"The average product will fall","value":"B"},{"text":"Average variable costs will fall","value":"C"},{"text":"Total revenue will fall","value":"D"},{"value":"E"}],"correctAnswer":2},{"id":213020,"question":"If marginal cost is positive and falling.","choices":[{"text":"Total cost is falling","value":"A"},{"text":"Total cost is increasing at a falling rate","value":"B"},{"text":"Total cost is falling at a falling rate","value":"C"},{"text":"Total cost is increasing at an increasing rate.","value":"D"},{"value":"E"}],"correctAnswer":2},{"id":213019,"question":"The average variable cost curve.","choices":[{"text":"Is derived from the average fixed costs","value":"A"},{"text":"Converges with the average cost as output increases","value":"B"},{"text":"Equals revenue minum profits","value":"C"},{"text":"Equal the total costs divided by the output","value":"D"},{"value":"E"}],"correctAnswer":2},{"id":213018,"question":"The first level of output at which the long run average costs are minimized is called.","choices":[{"text":"The minimum Efficient Scale","value":"A"},{"text":"The minimum External scale","value":"B"},{"text":"The Maximum External scale","value":"C"},{"text":"The maximum Effective scale.","value":"D"},{"value":"E"}],"correctAnswer":1},{"id":213017,"question":"When internal economics of scale occur","choices":[{"text":"Total costs fall","value":"A"},{"text":"Marginal costs increase","value":"B"},{"text":"Average costs fall","value":"C"},{"text":"Revenue falls","value":"D"},{"value":"E"}],"correctAnswer":3},{"id":213016,"question":"The law of diminishing returns assumes.","choices":[{"text":"There are not fixed factors of production","value":"A"},{"text":"There are no variable factors of production","value":"B"},{"text":"Utility is maximized when marginal product falls.","value":"C"},{"text":"Some factors of production are fixed","value":"D"},{"value":"E"}],"correctAnswer":4},{"id":213015,"question":"Which of the following is true.","choices":[{"text":"If the marginal cost is greater than the average cost the average cost fallls.","value":"A"},{"text":"If the marginal cost is greater than the average cost the average cost increases.","value":"B"},{"text":"If the marginal cost is positive total costs are maximized","value":"C"},{"text":"If the marginal cost is negatives total costs increase at a decreasing rate if output increases","value":"D"},{"value":"E"}],"correctAnswer":2},{"id":213014,"question":"If a maximum price is set below equilibrium there will be.","choices":[{"text":"A price fall","value":"A"},{"text":"A price increase","value":"B"},{"text":"Excess supply","value":"C"},{"text":"Excess demand","value":"D"},{"value":"E"}],"correctAnswer":4},{"id":213013,"question":"Nationalization occurs when","choices":[{"text":"The government bans a product","value":"A"},{"text":"The government takes control of an industry","value":"B"},{"text":"the government taxes a product to a raise the price.","value":"C"},{"text":"The government taxes a product to a raise its price.","value":"D"},{"value":"E"}],"correctAnswer":3},{"id":213012,"question":"A public good","choices":[{"text":"Is provided by the government","value":"A"},{"text":"Is free","value":"B"},{"text":"Has the properties of being non excludable and non diminishable","value":"C"},{"text":"Has external costs","value":"D"},{"value":"E"}],"correctAnswer":3},{"id":213011,"question":"With a positive externality","choices":[{"text":"There is under consumption in the free market","value":"A"},{"text":"There is over consumption in the free market","value":"B"},{"text":"The government may tax to decrease production","value":"C"},{"text":"Society could be made off if less was produced","value":"D"},{"value":"E"}],"correctAnswer":1},{"id":213010,"question":"Which of the following is the government most likely to subsidies.","choices":[{"text":"Negative externalities","value":"A"},{"text":"Positive externalities","value":"B"},{"text":"Monopolies","value":"C"},{"text":"O ligopojies","value":"D"},{"value":"E"}],"correctAnswer":2},{"id":213009,"question":"When supply increases in an agricultural market famer's earnings might fall because.","choices":[{"text":"Supply is price elastic","value":"A"},{"text":"Demand is price inelastic","value":"B"},{"text":"the government buys up all the excess production","value":"C"},{"text":"All output must be sold at a maximum price","value":"D"},{"value":"E"}],"correctAnswer":2},{"id":213008,"question":"The demand for a product would be more inelastic.","choices":[{"text":"The greater is the time under consideration","value":"A"},{"text":"The greater is the number of substitutes available to buyers","value":"B"},{"text":"The less expensive is the product in relation to incomes","value":"C"},{"text":"all of the above.","value":"D"},{"value":"E"}],"correctAnswer":3},{"id":213007,"question":"If the price in a market is fixed by the government above equilibrium.","choices":[{"text":"There is excess equilibrium","value":"A"},{"text":"There is excess supply","value":"B"},{"text":"There is excess demand","value":"C"},{"text":"There is equilibrium","value":"D"},{"value":"E"}],"correctAnswer":2},{"id":213006,"question":"If the fprice in a market is fixed by the government below equilibrium.","choices":[{"text":"There is excess equilibrium","value":"A"},{"text":"There is excess supply","value":"B"},{"text":"There is excess demand","value":"C"},{"text":"There is equilibrium","value":"D"},{"value":"E"}],"correctAnswer":3},{"id":213005,"question":"A public good will","choices":[{"text":"Be underprovided in the free market","value":"A"},{"text":"Be overprovided in the free market","value":"B"},{"text":"Not be provided in the free market","value":"C"},{"text":"Has no opportunity cost","value":"D"},{"value":"E"}],"correctAnswer":3},{"id":213004,"question":"\"Income inequality can be high in the free market and should be reduce \".This is an example of what.?","choices":[{"text":"Judicial economic statement.","value":"A"},{"text":"Positive economic statement","value":"B"},{"text":"Formative economic statement","value":"C"},{"text":"Normative economic statement","value":"D"},{"value":"E"}],"correctAnswer":4},{"id":213003,"question":"An increase in demand for a product should.","choices":[{"text":"Increase equilibrium price and quantity.","value":"A"},{"text":"Decrease equilibrium price and quantity.","value":"B"},{"text":"Increase equilibrium price and decrease quantity.","value":"C"},{"text":"Decrease equilibrium price and increase quantity.","value":"D"},{"value":"E"}],"correctAnswer":1},{"id":213002,"question":"The law of demand states that.","choices":[{"text":"As the quantity demanded rises, the price rises.","value":"A"},{"text":"As the price rises the quantity demanded rises","value":"B"},{"text":"As the price rises, the quantity demanded falls.","value":"C"},{"text":"As supply rises, the demand rises.","value":"D"},{"value":"E"}],"correctAnswer":3},{"id":213001,"question":"The price mechanism does not act as a","choices":[{"text":"Signal","value":"A"},{"text":"Incentive","value":"B"},{"text":"Rationing device","value":"C"},{"text":"Indicator of income","value":"D"},{"value":"E"}],"correctAnswer":4},{"id":213000,"question":"The best describes consumer surplus.","choices":[{"text":"The price consumers are willing to pay for a unit","value":"A"},{"text":"The cost of providing a unit.","value":"B"},{"text":"The profits made by a firm","value":"C"},{"text":"The difference the price a consumer pays for an item and the price he is willing to pay.","value":"D"},{"value":"E"}],"correctAnswer":4}]