In which of the following market structures must the price and output decisions of an individual firm include the possible price and output reactions of the firm's rivals?
a. Monopoly.
b. Oligopoly.
c. Perfect competition.
d. Cartel.
QUESTION 2An economist left his 100,000-a-year teaching position to work full-time in his own consulting business. In the first year, he had total revenue of 200,000 and business expenses of 150,000 . He made a(n):
a. implicit profit.
b. economic loss.
c. economic profit.
d. accounting loss but not an economic loss.
e. zero economic profit.
QUESTION 3Which of these signifies the role of money in any economy?
a. It acts as a tool for poverty alleviation in an economy.
b. It serves as a medium of exchange in an economy.
c. It indicates the economic wellbeing of a nation.
d. It helps to differentiate between the nominal and real income of a nation.
e. It is a clear indicator of the growth in national income.
QUESTION 4Excluding foreign competition, which of the following is an oligopoly in the United States?
a. The computer industry.
b. The automobile industry.
c. The steel industry.
d. All of these are oligopolies.
QUESTION 5Economic profit equals accounting profit minus:
a. explicit costs.
b. implicit costs.
c. fixed costs.
d. variable costs.
QUESTION 6Which of the following economic measures is most useful in comparing different economies across the world?
a. Aggregate supply
b. Total unemployment
c. Gross domestic product
d. Net national product
e. Aggregate expenditure
QUESTION 7An oligopoly is a market structure in which:
a. one firm has 100 percent of a market.
b. there are many small firms.
c. there are many firms with no control over price.
d. there are few firms selling either a homogeneous or differentiated product.
Quick Reply
