1. If supply for product A is perfectly elastic, the demand for this product increases:
A. the equilibrium price and quantity will increase;
B. the equilibrium price and quantity will decrease;
C. the equilibrium quantity will increase but the price will not change;
D. the equilibrium price will increase but the quantity will not change.
2. Suppose the coefficient of income elasticity of demand is higher than 1 and the revenue increases, the share of expenditures for commodity X in total expenditure:
A. will increase;
B. will decrease;
C. will remain constant;
D. can not be determined.
3. If the demand for agricultural products is inelastic:
A. as the prices decrease, the revenues earned by producers increase;
B. as the prices decrease, the revenues earned by producers decrease;
C. rising prices do not lead to differentiation in producers' incomes;
D. the percentage decrease in prices is lower than the percentage increase in demand.
4. For a rational consumer who has to choose between two goods in the context of budget constraints, the price change of one of the goods, caeteris paribus, will determine:
A. a parallel shift of the budget line to the left;
B. a change in the slope of the budget line;
C. no change in the budget line;
D. a parallel shift of budget line to the right.
5. The price of the product A was reduced from 100 to 90 Rs and, as a result, the quantity demanded has increased from 70 to 75 units. The demand is:
A. inelastic;
B. elastic;
C. unit elastic;
D. can not be determined from the given information.
6. Find the false statement:
A. in general, the demand for necessity goods is less elastic than demand for luxury goods;
B. if the price and the producers` income are directly proportional, the demand is elastic;
C. after a long period of time since the change in the price of the good A, supply becomes more elastic;
B. for a company whose production process involves making two goods, one main and the
other secondary, if the price of the main good increases, - caeteris paribus - the supply on
the secondary good`s market will increase (and vice versa).
7. If the demand curve for product A moves to the right, and the price of product B decreases, it can be concluded that:
A. A and B are substitute goods;
B. A and B are complementary goods;
C. A is an inferior good, and B is a superior good;
D. Both goods A and B are inferior.
8. Suppose the price of a good decreases by 10% and the quantity demanded for a certain period of time increases by 15%. In these conditions:
A. the revenues earned by producers decrease;
B. the revenues earned by producers increase;
C. the revenues are not influenced in any way;
D. the company's expenses rise.
9. If a price increase of 50% results in an increase in the quantity supplied of an economic good from 10 to 20 pieces, calculate the coefficient of price elasticity of supply.
A. ¼.
B. ½;
C. 1;
D. 2.
10. The total utility coincides with the marginal utility:
A. for the first unit consumed;
B. only for the irrational consumer;
C. at the level of the last unit consumed;
D. at the saturation point.
11. The indifference curve means:
A. equal consumption of two goods;
B. equal utility from the consumption of two combinations of goods;
C. equal consumer income;
D. equal prices of the goods consumed.
12. The points located at the intersection of the budget line with the coordinate axes mean:
A. the consumer does not spend all his income;
B. the consumer spends all his income for only one good;
C. the consumer spends absolutely nothing;
D. these are points impossible to reach by the consumer.
13.Which of the following statements are false?
A. information, the entrepreneur's ability, technical progress are neo-factors of production;
B. according to the stages of the circular flow of the company's capital, it takes three forms: money, capital goods and commodity;
C. fixed capital depreciation is only due to physical deterioration;
D.the factors of production are resources attracted and used in economic activity.
14. Which of the following aspects distinguish fixed capital from working capital:
a. the number of cycles of production they participate in;
b. the location of the production activity;
c. the period of time after which they are replaced;
d. the way they transmit their value to the new product.
A (a,d)
B (c,d)
C (a,c,d)
D (b,c,d)
15.Fixed cost includes:
a. expenditures for the salaries of the administrative staff;
b. expenditure for depreciation of fixed capital;
c. energy costs for manufacturing;
d. expenditure for general lighting.
A. (a,b,c)
B. (a,b,d)
C. (a,c,d)
D. (b,c,d)
16. When production volume is zero:
a. the fixed cost is 0;
b. the variable cost is 0;
c. the fixed cost is higher than the variable cost;
d. the variable cost is higher than the fixed cost.
A (a,b,c)
B (b,c,d)
C (b,c)
D (a,d)
17.Which of the following statements is false:
A. perfect competition involves many sellers of standardized products;
B. monopolistic competition involves many sellers of homogeneous products;
C. the oligopoly involves several producers of standardized or differentiated products;
D. monopoly involves a single product for which there are no close substitutes.
18.On the market with perfect competition:
A. the firm is a "price-taker," meaning, it takes over the market price;
B. the firm is a "price-maker", meaning, it determines the market price;
C. the companies’ products are differentiated;
D. input barriers are minimal, and exit barriers are maximal.
19. Which of the following conditions indicate that a good is produced under perfect competition:
A. producers` profits are high;
B. producers` profits are small;
C. total supply is inelastic;
D. individual demand is perfectly elastic.
20. Which of the following statements about monopoly is true:
A. there are several companies producing a specific product;
B. there is only one producing company, but the product has close substitutes;
C. there are no competitors on the relevant market;
D. input barriers are low.
21.There are differences between monopolistic and perfect competition regarding:
A. market entry;
B. the number of sellers and buyers;
C. the market power of competitors;
D. homogeneity of products.
22. Which of the following can be considered as the basic features of public goods:
A. are state-owned;
B. are characterized by non-excludability and non-rivalry;
C. are characterized by excludability and rivalry;
D. may be positive or negative.
23. Which of the following solutions are not part of the ways of internalizing externalities:
A. the imposition of fines on the producer of negative externalities;
B. the introduction of taxes and duties that bring private costs to the level of social costs;
C. closure of companies producing positive or negative externalities;
D. the association of the negative externality manufacturer with the receptor of such an effect.
24. Normally, the natural economy is characterized by:
A. price formation through complex mechanisms;
B. perfect competition;
C. the preponderance of product exchange;
D. the satisfaction of the individual and community needs of its own production.
25. Which of the following features define human needs:
A. are not concurrent;
B. do not disappear momentarily if they are satisfied;
C. are unlimited in capacity;
D. are unlimited in number.
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