Answer Happy

1.1 Opportunity cost refers to… a) The cost of the bestalternative forgone. b) The value of the best alternative forgone.c) All of the above. d) None of the above. 1.2 Points beyond theproduction possibilities frontier are… a) Inefficient b) Efficientc) Negative d) None of the above 1.3 When production takes place onpoints on the production possibilities frontier we refer to thisas… a) Economic growth. b) Improved production technique. c) Fullemployment. d) None of the above. 1.4 Secondary factors ofproduction include… a) Capital b) Entrepreneurship c) All of theabove d) None of the above 1.5 In the goods market, the followingare traded… a) Factors of production b) Goods and services c)Public goods and services d) None of the above 1.6 The followingare buyers in the factor market… a) Household b) Government c) Allof the above d) None of the above 1.7 A movement along a demandcurve illustrates… a) A change in quantity demanded b) A change inthe price c) All of the above d) None of the above 1.8 A price setabove the equilibrium price will result in… a) A market shortage b)A decrease in the price level c) An increase in the price level d)None of the above 1.9 A leftward shift of the supply curve can becaused by… a) An increase in the price level b) A decrease in theprice level of production inputs c) A decrease in the price leveld) None of the above 1.10 When demand and supply increase, thisresults in… a) A market surplus b) A definite increase inequilibrium quantity c) A definite increase in equilibrium price d)All of the above 1.11 A price ceiling above the equilibrium pricewill cause… a) A market surplus b) A market shortage c) Adeadweight loss d) None of the above 1.12 Price elasticity ofdemand… a) Increases down a straight-line demand curve b) Decreasesdown a straight-line demand curve c) Is constant down astraight-line demand curve d) Increases reach a maximum and thendecrease down a straight-line demand curve. 1.13 The type of priceelasticity of demand depicted in the figure is… a) Perfectlyinelastic b) Perfectly elastic c) Unitary elastic d) None of theabove 1.14 Accounting profit equals... a) Total revenue less totalexplicit costs b) Normal profit + economic profit c) All of theabove d) None of the above 1.15 When marginal product increases… a)Total product increase b) Average product is decreasing c) All ofthe above d) None of the above 1.16 A firm will close down in theshort-run if… a) Accounting profit is equal to zero b) Economicprofit is equal to zero c) Normal profit is equal to zero d) Noneof the above 1.17 Perfect competition is characterised by… a) Alarge number of sellers b) A large number of buyers c) Perfectinformation d) All of the above 1.18 The demand curve for aperfectly competitive firm is… a) Perfectly inelastic b) Perfectlyelastic c) Elastic d) Inelastic 1.19 Monopolistic competition ischaracterized by… a) A single firm b) Firms earn economic profit inthe long-run c) A kinked demand curve d) None of the above 1.20Long-run economic profits are possible under a) Oligopoly b)Monopoly c) All of the above d) None of the above.