ECO 561 Week 1 Quiz 100% Correct

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?