ECO561 ECO/561 Week 1 Quiz (12/12)

1.Revenue increases when? 

2.An increase in the price of an inelastic good

3.Price elasticity of Demand increases when

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

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?

6.The market system promotes progress by

7.Productive efficiency is achieved when

8.The market is said to be in equilibrium when

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

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

11.When a price ceiling occurs

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