1.When marginal cost and marginal revenue both rise, what action should a firm take?
2.What type of profit does a company earn when it covers all its economic costs without making any extra gain?
3.What are the effects on marginal cost and output when a firm's wage expenses rise?
4.At what point are profits at their highest level?
5.What term describes the rise in total expense resulting from producing an additional unit?
6.What do we call the total quantity demanded of a product by all consumers at a given price?
7.In economics, what is the primary reason individuals purchase goods and services?
8.When the price of a normal good rises, how do the income effect and substitution effect each influence the quantity demanded of that good?
9.What type of income elasticity do inferior goods exhibit compared to luxury goods?
10.What do positive and negative cross-price elasticities indicate about the relationship between two goods?
11.When demand is __________, how will reducing prices affect consumer expenditure?
12.What is the effect of a rise in import expenditures on the aggregate demand curve?
13.How would raising unemployment benefits and reducing the motivation to work affect the aggregate supply curve?
14.Which factor would lead to a reduction in aggregate demand?
15.When does a rise in aggregate demand primarily impact prices the most?
16.What is the likely effect of a shift in the aggregate supply curve?
17.If the price rises from 25 pence to 30 pence and the quantity supplied increases from 40 units to 44 units, what is the price elasticity of supply?
18.What is the effect on supply when the price rises, assuming all other factors remain constant?
19.When does a contraction in supply take place?
20.Under which condition is the supply curve expected to be more responsive to price changes?