Category: ECO231



1 / 50

A. These are few but very important features of monopolistic competition. Product ______ using branding and advertisement

2 / 50

B. Because diamonds are __________, consumers consume few diamonds and the marginal utility of an additional diamond is relatively high.

3 / 50

C. The Bertrand model is essentially the Cournot-Nash model except the strategic variable is price rather than _______

4 / 50

D. If TR/Q = (P x Q)/Q = Price, what is price?

5 / 50

E. Microeconomics also supposes that consumer consumers make their buying decisions in an effort to ___________ happiness or benefit.

6 / 50

F. Consumer utility is achieved when the ratio of marginal utility of one commodity is equal to its price is equal to the _______ of another to its price.

7 / 50

G. An example of price discrimination is quantity/bulk purchase _________

8 / 50

H. Factors of production are never demanded for their own sake thus the demand here is a ________ demand

9 / 50

I. Calculate the total revenue for a firm which is selling 10 television sets at N21,000 each.

10 / 50

J. These concepts of __________ and marginal utility can be used to resolve Adam Smith's diamond-water paradox.

11 / 50

K. Indifference curves are _______ sloping

12 / 50

L. Monopolistic Competition is one of the markets in-between perfectly _________ market and monopoly market

13 / 50

M. _________ utility is a measure of the additional utility that is derived when an additional unit of the good is consumed.

14 / 50

N. An oligopoly is where there are a __________ sellers with similar or identical products

15 / 50

O. Market structure is the number of firms producing identical goods, which are _______________ in nature.

16 / 50

P. Total utility will decline only if _________ utility is negative.

17 / 50

Q. How did Adam Smith resolve the problem of low value for water and high value for diamond?

18 / 50

R. Price discrimination is a pricing strategy that enables monopolist to charge customers __________ prices for the same good or service.

19 / 50

S. The law of ________ marginal utility states that consumption of any item yields the consumer declining utility holding taste constant.

20 / 50

T. Higher indifference curves are preferred to __________ ones, since more is preferred to less (non-satiation).

21 / 50

U. When Adam Smith was referring to "value in use," he was actually referring to the concept of ________ utility.

22 / 50

V. The demand curve facing a monopoly firm is the ___________ demand curve

23 / 50

W. Any two points on an _________ curve generate the same level of utility.

24 / 50

X. If Pb = N0.50/milk be the price of milk, and Po = N1.00/bread the price of bread. The relative price of a tin of milk in terms of bread is ____________ a loaf of bread.

25 / 50

Y. In perfect competitive market ______________.

26 / 50

Z. Expenditure on a particular good is the product of the amount of the good purchased times its price. We can then write the budget constraint as _____________.

27 / 50

AA. When good X becomes relatively more expensive, the quantity of good X demanded falls as a result of the ________ effect

28 / 50


A higher indifference curve that lies above and to the ________ of another indifference curve represents a higher level of satisfaction and combination on
a lower indifference curve yields a lower satisfaction.

29 / 50

AC. Since water is not very costly to acquire, people consume _______ water. At this high level of consumption, the marginal utility of an additional unit of water is relatively low.

30 / 50

AD. Monopolist ________ profits

31 / 50

AE. Perfect competition means there are few, if any, ________ to entry for new companies, and prices are determined by supply and demand.

32 / 50

AF. Which equation is Y = I/Py - Px/Py * X?

33 / 50

AG. The theory of distribution is an attempt to explain how _________ is distributed among the of production.

34 / 50

AH. Convexity is based on the notion that as a consumer consumes more and more of a particular good, the additional utility obtained _____________

35 / 50

AI. What does the "non-satiation" expression connotes?

36 / 50

AJ. Exchange value, on the other hand, is tied to how much someone is willing to pay for an ________ unit of the commodity.

37 / 50

AK. In a monopoly the company is similar to the ______

38 / 50

AL. To maximize utility subject to budget constraint, the ratio of marginal utility to price should be_________.

39 / 50

AM. Perfect competition exists in an industry where perfect competition is characterized by ________ buyers and sellers, many products that are similar in nature and, as a result, many substitutes.

40 / 50

AN. Because the marginal utility of an additional diamond is higher than the marginal utility associated with an additional glass of water, diamonds have a _________ value in exchange.

41 / 50

AO. If a good causes problem for a consumer we say it has _______ effect.

42 / 50

AP. A basic assumption of microeconomics is that because a consumer does not have _______________, his or her available cash for spending must be judiciously allocated for maximum benefit.

43 / 50

AQ. The slope of the _________ curve measures the MRS.

44 / 50

AR. The consumer is considered to be __________ person, who tries to spend his or her money to derive the maximum amount of satisfaction, or __________, from it.

45 / 50

AS. Note that this (MR) too is equal to price, so the marginal revenue is constant as well, and is equal to average revenue.

46 / 50

AT. What does convexity say?

47 / 50


By selling 30 units, firm JKB
make N300. After selling the
31st unit, firm’s revenue
increased to 318. What is the
marginal revenue in this

48 / 50

AV. Which of the following is an assumption of the model of perfect competition?

49 / 50

AW. The short run profit maximization in monopolistically competitive firm is the same as that of monopoly i.e. ___________________ this condition should  hold.

50 / 50

AX. The _______________ would then say that income is equal to the sum of consumer expenditure.

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