A. customs union
B. economic union
C. common market
D. free trade area
Economics Mcqs
A graph showing all the combinations capital and labor available for a given total cost is the ?
A. expenditure set
B. isocost line.
C. budget constraint
D. isoquant
The implementation of the European Union has ?
A. made it harder for Americans of compete against the Germans in the British market
B. made it easier for Americans to compete against the Germans in the British market
C. made it harder for Americans to compete against the Japanese in the British market
D. made it easier for Americans to compete against the Japanese in the British
The formula for average variable cost (AVC) is ?
A. DTVC/Dq
B. q/TVC
C. Dq/DTVC
D. TVC/q
As of 2002, the …….. became the official currency union of the European Monetary System ?
A. dollar
B. mark
C. franc
D. euro
A firm will shut down in the short run if ?
A. fixed costs exceed revenues.
B. it is suffering a loss.
C. variable costs exceed revenues
D. total costs exceed revenues
The implementation of a common market involves all of the following except ?
A. elimination of trade restrictions among member countries
B. a common tax system and monetary union
C. prohibition to restriction on factor movements
D. a common tariff levied in imports from nonmembers
Trade diversion takes place when ?
A. a country moves from autarky to free trade
B. a movement to a customs union reduces the costs of trade through standardization economic integration results in a
C. economic integration results in a movement in product origin to a lower cost member country
D. economic integration results in a shift in product origin from a lower-cost, nonmember country to a member country having higher costs
Market power is ?
A. a firm’s ability to monopolies a market completely.
B. a firm’s ability to raise price without losing all demand for its product
C. a firm’s ability to sell any amount of output it desires at the market-determined price.
D. a firm’s ability to charge any price it likes