ECO231 Tma Solutions
1. Utility is defined as the __________
Degree of responsiveness of goods and services to price
The amount of goods and services consumed
—>> The level of satisfaction connected with alternative choices.
None of the options
2. In production, at the point where price is greater than average variable cost, the firm is said to ______
Make profit
Break even
Make loss
—>> Shut down
3. The buyers and sellers of a factor are referred to as _________
Price maker
—>> Price taker
Price decider
None of the options
4. The relative price of good A in terms of good B is shown by the slope of the ________
—>> Budget line
Indifference curve
Isocost
Isoquant
5. A market situation whereby there is only a single firm providing all factors employment is referred to as ________
—>> Monopsony
Monopoly
Duopoly
Oligopoly
6. The slope of the indifference curve is also referred to as _______
Marginal Rate of Technical Substitution
—>> Marginal Rate of Substitution
Marginal Utility
Ordinal Utility
7. In a perfectly competitive market, an individual firm cannot influence the market price of a factor by increasing or decreasing _______
Price
Supply
—>> Demand
None of the options
8. Monopsony is a market situation in which there is only one ______ of the factors of production
Seller
—>> Buyer
Dealer
Factor
9. At the level of output at which demand is unit elastic, ________ is maximized
Fixed revenue
—>> Total revenue
Average revenue
Marginal Revenue
10. As equilibrium price fall in the long run, market supply will ______
—>> Increase
Decrease
Remain the same
None of the options
JOIN OUR TELEGRAM ON VIP NOUN UPDATES – FOR FREE ECO231 PAST QUESTIONS AND EXAMS SUMMARIES
