ECO 561 Week 1 Quiz
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?