Question

1)Suppose it is observed in a market that price has fallen but more product is being produced and sold. This could be caused by a(n):

A) decrease in supply and demand

B) decrease in demand

C) decrease in supply

D) increase in supply

2) Production can be increased whenever people:

A) engage in activities with a high opportunity cost

B) specialize in whchever field they have a comparative advantage in

C) Specialize in whatever interests them

D) Do not allocate goods through trade

3) If price falls by 10%, total revenue:

A) rise if quantity demanded changes by 10%

B) rises if quantity demanded change by less than 10%

C) falls if quantity demanded changes by 10%

D) falls if quantity demanded changes by less than 10%

Answer 1

Ans1) the correct option is D) increase in supply

Ans2) the correct option is B) specialize in whchever field they have a comparative advantage in

Ans3) the correct option is D) falls if quantity demanded changes by less than 10%