Answer Sheet

Chapter 1: The Fundamentals of Economics Quiz Set-I Make Sentence with appropriate choice
Question 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. Correct Answer scarce; commodities scarcity efficient micro economics macro economics The Wealth of Nations; The General Theory of Employment, Interest, and Money. fallacy of composition how, what, and for whom Positive economics normative economics market economy laissez-faire command economy mixed economies. Land, labor, and capital maximum amounts, technology and inputs to production. inside; on; outside shift the PPF outward opportunity cost efficiency

Quiz Set-II Match the terms on the left with the definition in the column on the right
Question 1. 2. 3. 4. 5. 6. 7. Correct Answer d. f. a. g. c. h. l. 8. 9. 10. 11. 12. 13. 14. 15. e. k. b. i. n. o. j. m.

Answer Sheet
Chapter 2 Markets and Government in a modern Economy Quiz Set-I: Make sentence with appropriate choice
Question 1. 2. Correct Answer welfare state Laissez-faire A market is a mechanism through which buyers and sellers interact to set prices and exchange goods and services, but sometimes those markets are specific locations like the spice bazaar in Istanbul (both a and b) Prices Profits and losses Tastes and technology Adam Smith, The Wealth of Nations gains from trade Globalization capital land, labor, and capital Pure competition externalities Public goods changes in taxation and government spending; changes in the supply of money and interest rates.

3.

4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15.

Quiz Set-II Match the terms on the left with the definition in the column on the right
Question 1. 2. 3. 4. 5. 6. 7. 8. Correct Answer g. d. a. c. f. b. i. e. 9. 10. 11. 12. 13. 14. 15. h. j. m. l. n. k. o.

Answer Sheet
Chapter 3 Basic Elements of Supply and Demand Quiz Set-I: Make sentence with appropriate choice
Question 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. Correct Answer demand curve as price increases decreases, quantity demanded

substitution effect income effect market demand curve price of good X demand for broccoli will decrease and the demand curve for broccoli will shift to the left the underlying change supply curve All of the above a movement along the supply curve equilibrium price and is the price at which the supply and demand curve cross. both a and b increase; increase; decrease; increase all of the above. determinants of demand

Quiz Set-II Match the terms on the left with the definition in the column on the right
Question 1. 2. 3. 4. 5. 6. 7. 8. Correct Answer d. f. b. g. c. e. a. i. 9. 10. 11. 12. 13. 14. 15. h. l. j. m. k. n. o.

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Chapter 4 Applications of Supply and Demand Quiz Set-I: Make Sentence with appropriate choice
Question 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. Correct Answer the change in the quantity demanded of a good given a change in the price the good. a 1 percent increase in the price produces less than a 1 percent decrease in the quantity demanded. 2 vertical; horizontal TR a decrease in total revenue. price discrimination price elasticity of supply 1 left; increase; higher; consumers; inelastic upward; downward consumers increases, decrease shortages

Quiz Set-II: Match the terms on the left with the definition in the column on the right
Question 1. 2. 3. 4. 5. 6. 7. 8. Correct Answer d. g. a. f. b. i. e. c. 9. 10. 11. 12. 13. 14. 15. h. k. j. m. l. n. o.

Answer Sheet
Chapter 5: Demand and Consumer Behavior Quiz Set-I: Make Sentence with appropriate choice
Question 1. 2. 3. 4. Correct Answer Utility the additional utility that a consumer derives from consuming one additional unit of a good. your utility grows at a slower and slower rate as you consume more and more units of a good. the total utility for the consumption of the first five units. the marginal utility of the last dollar spent on each good is exactly equal to the marginal utility of the last dollar spent on any other good. a higher price decreases the desired level of consumption. consumer's

5.

6. 7. 8. 9. 10. 11. 12. 13. 14.

less of the more expensive good and more of some other good. less of the good because their real incomes are lower after the price increase. none of the above all of the above an increase inelastic Consumer surplus there is so much of it

Quiz Set-II: Match the terms on the left with the definition in the column on the right
Question 1. 2. 3. 4. 5. 6. Correct Answer g. a. l. b. h. c. 7. 8. 9. 10. 11. 12. 13. 14. j. d. i. f. k. e. m. n.

Answer Sheet
Chapter 6: Production and Business Organization Quiz Set-I: Make Sentence with appropriate choice
Question 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. Correct Answer shows the maximum output that can be produced with a given quantity of inputs. total product. The marginal product AP The law of diminishing returns Economies of scale; Constant returns to scale short; long Technological change productivity individual proprietorships corporations are charged an extra tax on their profits. Capital 500 500 network

Quiz Set-II: Match the terms on the left with the definition in the column on the right
Question 1. 2. 3. 4. 5. 6. 7. Correct Answer c. g. f. a. d. l. b. 8. 9. 10. 11. 12. 13. e. m. h. i. k. j.

Answer Sheet
Chapter 7 Analysis of Costs Quiz Set-I: Make Sentence with appropriate choice
Question 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. Correct Answer fixed costs FC + VC variable Marginal cost $201 AC fixed cost divided by total output (AFC = FC / Q.) AVC = (TC-FC)/Q increasing; average cost at its minimum. buy inputs until it has equalized the marginal product per dollar spent on each input. use more B and less A. total revenue minus total cost. assets, liabilities, and net worth. changes over time. Getting a good grade on your economics quiz.

Quiz Set-II: Match the terms on the left with the definition in the column on the right
Question 1. 2. 3. 4. 5. 6. 7. 8. Correct Answer l. a. g. b. f. c. k. e. 9. 10. 11. 12. 13. 14. 15. d. h. j. j. i. m. n.

Answer Sheet
Chapter 8: Analysis of Perfectly Competitive Markets Quiz Set-I: Make Sentence with appropriate choice Question Correct Answer 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. price-takers; horizontal All of the above. MC=P. AC=P both a and b. market supply curve. more elastic AC=MC=P. rent allocative efficiency. below the prevailing market price and above the supply curve. all of the above Perfect competition a backward-bending supply curve

Quiz Set-II: Match the terms on the left with the definition in the column on the right

Question 1. 2. 3. 4. 5. 6.

Correct Answer f. a. g. c. l. b.

7. 8. 9. 10. 11. 12. 13.

h. e. j. d. i. m. k.

Answer Sheet
Chapter 9 Imperfect Competition and Its Polar Case of Monopoly Quiz Set-I: Make Sentence with appropriate choice
Question 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. Correct Answer individual sellers have control over the price of the goods or services they produce. producers face a downward sloping demand curve for their product. monopoly oligopoly many sellers products. who produce differentiated

there is only one producer because the entire market's output can be produced most efficiently by that one firm. Price fixing Marginal revenue 144. negative; inelastic decrease; positive MR=MC found on the demand curve at the level of Q where MR=MC. marginal principle the total revenue and total cost curves will have the same slopes.

Quiz Set-II: Match the terms on the left with the definition in the column on the right
Question 1. 2. 3. 4. 5. 6. Correct Answer a. f. k. c. i. e. 7. 8. 9. 10. 11. 12. 13. 14. b. l. d. j. g.. m. h. n.

Answer Sheet
Chapter 10: Oligopoly and Monopolistic Competition Quiz Set-I: Make Sentence with appropriate choice
Question 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. Correct Answer Market power the percent of total industry production that is accounted for by the largest four firms. summing the squares of the percentage market shares of all the participants in an industry. 0; 10,000 each firm's business behavior of its rivals. Collusion All of the above raise price and restrict output, and therefore attain the monopoly profit. All of the above Under perfect competition, firms sell a homogeneous product, but under monopolistic competition, firms sell differentiated products. above; zero a and b inappropriability a and b Deadweight losses depends upon the

poor quality and high prices.

Quiz Set-II: Match the terms on the left with the definition in the column on the right
Question 1. 2. 3. 4. 5. 6. 7. Correct Answer l. d. a. k. b. g. h. 8. 9. 10. 11. 12. 13. 14. 15. 16. e. j. f. c. i. m. n. o. p.

Answer Sheet
Chapter 11 How Markets Determine Incomes Quiz Set-I: Make Sentence with appropriate choice
Question 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. Correct Answer income National income Transfer payments Wealth a derived demand. the demands for the inputs to production are derived from the revenues that each input yields on its marginal product. a and b a and b both a and b The substitution rule quantity supplied and quantity demanded are equal. a relatively inelastic supply of surgeons and higher wages for surgeons than for burger flippers.

Quiz Set-II: Match the terms on the left with the definition in the column on the right
Question 1. 2. 3. 4. 5. Correct Answer d. h. a. k. b. 6. 7. 8. 9. 10. 11. i. c. e. j. g. f.

Answer Sheet
Chapter 12: The Labor Market Quiz Set-I: Make Sentence with appropriate choice
Question 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. Correct Answer the purchasing power of an hour's work. Increasing wages and decreasing hours of work its marginal productivity. all of the above increased; decreased. compensating differences human capital she has particular skills or attributes that are highly valued by news watchers. AFL-CIO. collective bargaining. The Fair Labor Standards Act Unions gain market power by obtaining monopoly rights on the provision of labor to particular firms. a lump; sticky both a and b statistical discrimination.

Quiz Set-II: Match the terms on the left with the definition in the column on the right
Question 1. 2. 3. 4. 5. 6. 7. Correct Answer f. a. h. e. g. b. d. 8. 9. 10. 11. 12. 13. i. c. j. l. k. m.

Answer Sheet
Chapter 13 Land and Capital Quiz Set-I: Make Sentence with appropriate choice
Question 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. Correct Answer both b and c inelastic; whatever it can no market inefficiencies. capital The rate of return on capital Depreciation a. A robot in a factory tangible assets financial asset both a and b the nominal interest rate minus the rate of inflation. The present value both a and b perfectly inelastic All of the above are correct. distortions nor economic

Quiz Set-II: Match the terms on the left with the definition in the column on the right
Question 1. 2. 3. 4. 5. 6. 7. 8. Correct Answer l. d. h. a. f. b. e. g. 9. 10. 11. 12. 13. 14. 15. c. j. m. i. k. n. o.