MicroEconomics, Theory and Applications 1 MCQs and Notes

M
Add MCQ, ...................................
📊 MicroEconomics, Theory and Applications 1
Q. Suppose a firm sells its product at a price lower than the opportunity cost of the inputs used to produce it. Which is true?
  • (A) the firm will earn accounting and economic profits
  • (B) the firm will face accounting and economic losses
  • (C) the firm will face an accounting loss, but earn economic profits
  • (D) the firm may earn accounting profits, but will face economic losses
💬 Discuss
✅ Correct Answer: (D) the firm may earn accounting profits, but will face economic losses
📊 MicroEconomics, Theory and Applications 1
Q. If a firm’s revenues just cover all its opportunity costs, then:
  • (A) normal profit is zero
  • (B) economic profit is zero
  • (C) total revenues equal its explicit costs
  • (D) total revenues equal its implicit costs
💬 Discuss
✅ Correct Answer: (B) economic profit is zero
📊 MicroEconomics, Theory and Applications 1
Q. Which would be an implicit cost for a firm? The cost:
  • (A) of worker wages and salaries for the firm
  • (B) paid for leasing a building for the firm
  • (C) paid for production supplies for the firm
  • (D) of wages foregone by the owner of the firm.
💬 Discuss
✅ Correct Answer: (D) of wages foregone by the owner of the firm.
📊 MicroEconomics, Theory and Applications 1
Q. Implicit costs are:
  • (A) equal to total fixed costs
  • (B) comprised entirely of variable costs
  • (C) “payments” for self-employed resources
  • (D) always greater in the short run than in the long run
💬 Discuss
✅ Correct Answer: (C) “payments” for self-employed resources
📊 MicroEconomics, Theory and Applications 1
Q. A firm that is threatened by the potential entry of competitors into a market builds excess production capacity. This is an example of
  • (A) a prisoners’ dilemma
  • (B) collusion
  • (C) a credible threat
  • (D) tit-for-tat
💬 Discuss
✅ Correct Answer: (C) a credible threat
📊 MicroEconomics, Theory and Applications 1
Q. A game that involves multiple moves in a series of identical situations is called a
  • (A) sequential game
  • (B) repeated game
  • (C) zero-sum game
  • (D) nonzero-sum game
💬 Discuss
✅ Correct Answer: (B) repeated game
📊 MicroEconomics, Theory and Applications 1
Q. A game that involves interrelated decisions that are made over time is a
  • (A) sequential game
  • (B) repeated game
  • (C) zero-sum game
  • (D) nonzero-sum game
💬 Discuss
✅ Correct Answer: (A) sequential game
📊 MicroEconomics, Theory and Applications 1
Q. A strategy that is best regardless of what rival players do is called
  • (A) first-mover advantage
  • (B) a nash equilibrium strategy
  • (C) tit-for-tat
  • (D) a dominant strategy
💬 Discuss
✅ Correct Answer: (D) a dominant strategy

More Faculties

Click on sub category to learn more.

📱 Download Our App

Learn MCQs on the go with our easy-to-use Android app

Get it on Google Play