Economics Ss1 Revision Questions Profit Optimization
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
