C13V : Microeconomics
1-Which of the following is NOT demonstrated by a production possibility curve?

Opportunity cost

Necessity for choice due to scarcity


2-The market price __________ the equilibrium price.
can be higher than, but never lower than

can be lower than, but never higher than

3-The poverty line is set:
by the U.S. Bureau of the Census (based on family food budgets).

at the same income level right now as it’s been since 1982.

so high that over 30% of all Americans are officially poor.

by the United Nations for every country in the world.

4-If a monopolist has a straight-line demand curve, then its marginal revenue curve will:
be the same as the demand curve.

fall twice as quickly as the demand curve.

lie below the demand curve at all points.

cross the demand curve.

5-As long as total utility is increasing, we know that marginal utility is:




6-A key reason that our gasoline prices elevated rapidly from 2006 to 2008 was:
tight global supplies and high prices.

the war in the Middle East.

greed by oil exporting countries.


7-In order for real wages to grow:
productivity must grow.

productivity must fall.

money wages must grow.

money wages must fall.

8-The substitution effect and the output effect work in the:
same direction some of the time.

same direction all of the time.

opposite direction some of the time.

opposite direction all of the time.

9-The law of demand holds for:
individuals, but not for markets.

markets, but not for individuals.

both individuals and for markets.

neither individuals nor for markets.

10-A firm will maximize its profits or minimize its loss at the output where:
the difference between price and marginal cost is at its maximum.

total cost equals total revenue.

marginal cost equals marginal revenue.

total revenue equals variable cost