Quiz: Micro Economics

The consumer's budget constraint. The price level of goods. The substitutability of production inputs. The quantity demanded for a good.

It calculates the wage rates for employees. It helps them understand how price changes affect sales volume. It helps in calculating the interest rate on loans. It determines the total cost of production.

Consumer behavior Wealth accumulation and production Market equilibrium Government intervention

As a percentage In units As a ranking In qualitative terms

Deciding company profits to be reinvested. Determining the price of goods sold by a company. Calculating the cost of raw materials. The process of discussing and agreeing upon worker compensation.

They ensure that all workers receive equal pay. They reflect differences in job skills, experience, and location. They prevent any form of wage negotiation. They are a tool to measure inflation.

A single firm controlling the entire market. Barriers to entry and exit. Product differentiation. Homogenous products.

The underlying patterns in past demand data over time. Expert predictions without historical data. Seasonal fluctuations only. Immediate changes in demand.

It is too complex for practical use It only considers qualitative data It cannot be applied to market economies It does not account for changes over time

The average cost of all units produced in the long run. The fixed costs over time. The total cost divided by the quantity of output in the long run. The additional cost of producing one more unit of output in the long run.