ECO 561 Week 1 Knowledge check

ECO/561 Week 1 Knowledge check (All 12 MCQ)

1 . Revenue increases when

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2 . An increase in the price of an inelastic good

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3 . Price elasticity of Demand increases when

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4 . The purpose of a market in a market system is to

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5 . By specializing in the production of one good, a company is able to benefit from economies of scale which increases its revenue. Which of the following is an attribute of specialization?

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6 . The market system promotes progress by

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7 . Productive efficiency is achieved when

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8 . The market is said to be in equilibrium when

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9 . The market will move to a higher equilibrium price if

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10 . The intersection of supply and demand will be at a lower equilibrium price but a higher equilibrium quantity if

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11 . When a price ceiling occurs

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12 . Because the goals of firms, entrepreneurs, and workers have different incentives, which of the following principles applies?

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