What does the concept of 'entrepreneurship' primarily involve?

Starting a new business taking several risks

What defines a social business?

A business aiming to solve social problems without making any profit

According to the Law of Demand, when the price of a commodity is raised, consumers buy:

Less of the commodity, ceteris paribus

What is the difference between normative and positive statements?

Normative views are personal, positive are factual

What is an example of an oligopoly?

The soda market with three dominant companies

What does a competitive strategy primarily focus on?

Outperforming rivals by being different

What role does entrepreneurship play in the economy?

It leads to firms that create goods and services

What determines the share of tax payed by buyers and seller?

Buyers pay more if they have a low elasticity of demand

The price elasicity of demand tells us

How the quantity demanded is affected by a change in the price of a good

In consumer theory, what is the marginal utility?

The additional utility derived from consuming an additional unit of a good

What was a major drawback of the PlayPump project?

Need for continuous force to operate

If the price of milk goes down, then the consumer will consume...

More milk and cereal (they will increase by the same amount)

What is the main purpose of economic theory despite its simplifications?

To gain intuition and inform policy decisions

What is not an ethical concerns related to Facebook's operations?

Its lack of transparency in financial reporting

What is the meaning of an isocost in firm theory?

A curve with all combinations of labor and capital with the same cost

If there is a positive supply shock, then...

Price will decrease and quantity will increase

Cross-price elasticity of demand is....

How the demand of good 2 changes in response to the price of good 1

What does utility (U) represent in microeconomics?

The pleasure or usefulness derived from consuming a good or service

Why was Henry Ford's minimum wage successful?

Workers stayed in the company and were more productive

In a monopoly, there is:

A single dominating firm and many consumers

What is opportunity cost?

The value of the next best thing given up when making a decision.

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Questions 38

Answers

1
What is the main assumption of a competitive market?
Competition is always good
People like competition
Many firms and many customers
Externalities are present
2
What does the concept of 'entrepreneurship' primarily involve?
Being comfortable with stretching rules and shifting strategies
Being comfortable with stretching rules and shifting strategies
Starting a new business taking several risks
Leading a group to pursue an idea
3
What defines a social business?
A business aiming to solve social problems without making any profit
A business that donates its profits to charitable organisations
A business with a strong focus on social media marketing
A business committed to corporate social responsibility
4
What are the two factors of production in firm theory?
Consumers and producers
Demand and supply
Goods and services
Labour and capital
5
What does IPO stand for?
International Profit Organization
Initial Public Offering
Initial Private Offering
Individual Public Offering
6
According to the Law of Demand, when the price of a commodity is raised, consumers buy:
Less of the commodity
Less of the commodity, ceteris paribus
The same amount of the commodity, ceteris paribus
More of the commodity, ceteris paribus
7
Why do some firms charge a single price to all buyers?
Externalities
Imperfect information
Monopoly power
Perfect information
8
This graph depicts a...
Positive supply shock
Negative demand shock
Positive demand shock
Negative supply shock
9
Which of the following is not one of Schumpeter's types of innovation?
Product innovation
Process innovation
Scientific innovation
Organisational innovation
10
What is the difference between normative and positive statements?
Normative views always true, positive can be false
Positive statements are preferences, normative are facts
Both express personal information
Normative views are personal, positive are factual
11
What do economists call the cases where market assumptions fail and government intervention is needed?
Market failure
Market equilibrium
Market correction
Perfect competition
12
What is an example of an oligopoly?
The technology market with many homogeneous goods
The soda market with three dominant companies
The healthcare market with a single dominating firm
The military market with many firms and one buyer
13
What does a competitive strategy primarily focus on?
Adopting the same approaches as competitors
Collaborating with other companies
Outperforming rivals by being different
Developing financial inclusion
14
Which bias occurs when we prefer present benefits over future consequences?
Endowment Effect
Present Bias
Confirmation Bias
Anchoring Effect
15
What role does entrepreneurship play in the economy?
It encourages economic inequality
It leads to firms that create goods and services
It primarily focuses on job creation
It has no significant impact on economic growth
16
Which market structure has only one dominating buyer and many firms?
Oligopoly
Perfect competition
Monopoly
Monopsony
17
What determines the share of tax payed by buyers and seller?
Buyers pay more if they have a low elasticity of demand
Sellers pay more if the tax is imposed directly on them
Buyers pay more if the tax is imposed directly on them
Buyers pay more if they have a high elasticity of demand
18
What is the term for a situation where economic agents always do what is best for themselves?
Monopoly power
Rationality
Perfect competition
Externalities
19
What do we call it when an action by a firm or consumer indirectly affects another economic agent?
Rationality
Externality
Perfect information
Monopsony
20
The price elasicity of demand tells us
How the quantity supplied is affected by a change in the price of a good
How the price of a good is affected by quantity demanded
How the price of a good is affected by quantity supplied
How the quantity demanded is affected by a change in the price of a good
21
If the price of labour doubles, then the isocost curve will...
Rotate down
Shift out
Shift in
Rotate up
22
In consumer theory, what is the marginal utility?
The additional utility derived from consuming an additional unit of a good
The utility derived from consuming the first unit of a good
The utility derived from consuming the last unit of a good
The total utility derived from consuming a good
23
What is the objective of a firm in microeconomics?
To maximize market share
To maximize sales revenue
To maximize profits
To minimize costs
24
What was a major drawback of the PlayPump project?
Lack of market readiness
Need for continuous force to operate
Lack of investor interest
Inadequate number of PlayPumps
25
If the price of milk goes down, then the consumer will consume...
More milk and cereal (they will increase by the same amount)
More milk and cereal (but cereal will increase less)
More milk and cereal (but cereal will increase more)
More milk (but cereal will not change)
26
What is the main purpose of economic theory despite its simplifications?
To create confusion among policymakers
To provide complex mathematical models
To gain intuition and inform policy decisions
To complicate real-world scenarios
27
With a positive supply shock, the supply curve will..
Shift inwards
Rotate inwards
Rotate outwards
Shift outwards
28
What is not an ethical concerns related to Facebook's operations?
Its lack of transparency in financial reporting
Its monopoly in the social media industry
Its potential to harm the mental health of users
Its use of user data for targeted political advertising
29
What is the meaning of an isocost in firm theory?
The relationship between price and quantity demanded
The impact of price changes on consumer behavior
The combinations of goods that give a consumer equal utility
A curve with all combinations of labor and capital with the same cost
30
If there is a positive supply shock, then...
Price will decrease and quantity will increase
Price will increase and quantity will decrease
Price will decrease and quantity will decrease
Price will increase and quantity will increase
31
Which test evaluates whether a business model makes sense and is coherent?
Numbers Test
Narrative Test
Adaptability Test
Innovation Test
32
If the price of cans of soda goes up, the budget constraint will....
Shift down
Rotate down
Rotate up
Shift up
33
Cross-price elasticity of demand is....
How the demand of good 2 changes in response to the price of good 1
How the supply of good 2 changes in response to the demand of good 1
How the demand of good 2 changes in response to the supply of good 1
How the price of good 2 changes in response to the quanity of good 1
34
What does utility (U) represent in microeconomics?
The quantity of goods consumed
The total income of a consumer
The pleasure or usefulness derived from consuming a good or service
The cost of goods and services
35
Why was Henry Ford's minimum wage successful?
He was able to get more workers, which was difficult before
Costs went up, which increased profits
Workers stayed in the company and were more productive
Workers left more and got less done
36
Which policy aims to encourage innovation by granting exclusive rights to inventors?
Patents
Free Trade Agreements
Skilled Migration Support
Tax Incentives for R&D
37
In a monopoly, there is:
Many firms and many consumers
A single dominating firm and many consumers
Many firms and one single dominant consumer
Few dominant firms and many consumers
38
What is opportunity cost?
The cost of producing one additional unit of a good or service.
The rate at which a the price level for goods and services rises over time.
The value of the next best thing given up when making a decision.
The amount a business spends on production, including labor and materials.

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