Economics Ss1 Revision Questions Profit Optimization

Question
Profit is maximised when ——-

Answer
MR = MC

Question
The amount the firm receives for a typical unit is known as the ——-

Answer
average revenue

Question
There are —– basic types of market structures by traditional economic analysis

Answer
4

Question
The revealed preference theory makes —– assumptions

Answer
2

Question
The slope of the budget line shows the ——- price of good X in terms of good Y

Answer
relative

Question
The budget line plays —– important roles

Answer
2

Question
The budget constraint says that ———- is equal to the sum of consumer expenditure

Answer
income

Question
When Adam Smith was referring to “value in use,” he was actually referring to the concept of ——–

Answer
total utility

Question
The ——— theory is used to explain the distinction between substitution and income effects of a price change.

Answer
indifference

Question
The slope of indifference curve is also known as ——–

Answer
MRS

Question
Any two points on an indifference curve generate —— level of utility

Answer
same

Question
Consumer behaviour can also be demonstrated using ——–

Answer
indifference curves

Question
the difference between total utility derived from one level of consumption and total utility derived from another level of consumption is

Answer
marginal utility

Question
The total satisfaction obtained from all units of a particular commodity consumed over a period of time is ———-

Answer
total utility

Question
A consumer ——- utility if the utility received is greater than or equal to the naira spent

Answer
maximizes

Question
Convexity says that ———— declines as consumption increases

Answer
marginal utility

Question
The consumer must be ——– in preference and rankings.

Answer
consistent

Question
The essential foundation of demand, therefore, is a pattern of how —— behave in the market

Answer
consumers

Question
The consumer is considered to be a ——- person, who tries to spend his or her money to derive the maximum amount of satisfaction

Answer
rational

Question
A basic assumption of microeconomics is that because a consumer does not have an budget

Answer
unlimited

Question
Profit is maximised when ——-

Answer
MR = MC

Question
The amount the firm receives for a typical unit is known as the ——-

Answer
average revenue

Question
There are —– basic types of market structures by traditional economic analysis

Answer
4

Question
The revealed preference theory makes —– assumptions

Answer
2

Question
The slope of the budget line shows the ——- price of good X in terms of good Y

Answer
relative

Question
The budget line plays —– important roles

Answer
2

Question
The budget constraint says that ———- is equal to the sum of consumer expenditure

Answer
income

Question
When Adam Smith was referring to “value in use,” he was actually referring to the concept of ——–

Answer
total utility

Question
The ——— theory is used to explain the distinction between substitution and income effects of a price change.

Answer
indifference

Question
The slope of indifference curve is also known as ——–

Answer
MRS

Question
Any two points on an indifference curve generate —— level of utility

Answer
same

Question
Consumer behaviour can also be demonstrated using ——–

Answer
indifference curves

Question
the difference between total utility derived from one level of consumption and total utility derived from another level of consumption is

Answer
marginal utility

Question
The total satisfaction obtained from all units of a particular commodity consumed over a period of time is ———-

Answer
total utility

Question
A consumer ——- utility if the utility received is greater than or equal to the naira spent

Answer
maximizes

Question
Convexity says that ———— declines as consumption increases

Answer
marginal utility

Question
The consumer must be ——– in preference and rankings.

Answer
consistent

Question
The essential foundation of demand, therefore, is a pattern of how —— behave in the market

Answer
consumers

Question
The consumer is considered to be a ——- person, who tries to spend his or her money to derive the maximum amount of satisfaction

Answer
rational

Question
A basic assumption of microeconomics is that because a consumer does not have an budget

Answer
unlimited

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