Question

A supply curve shifts because:

	I.	A determinant of demand has change
	II.	A determinant of supply has changed
	III.	The quantity supplied has changed
	IV.	The price has changed

If the marginal product is equal to the average product, then:

	I.	Average product is not changing
	II.	Marginal product is increasing
	III.	Marginal product is decreasing
	IV.	Average product is increasing

The extra revenue generated from one additional unit of labor;

	I.	Marginal-revenue product of labor
	II.	Marginal revenue
	III.	Marginal product of labor
	IV.	Average revenue

What can you say about monopoly?

	I.	Because the monopoly faces no competition, its demand curve is not downward sloping
	II.	The firm is the industry
	III.	The firm is large than any other one is n the industry
	IV.	The good it produces has low cross elasticities with all the goods in the industry

A particular good can be classified as a normal goods if an increasing in buyers’ income cause

	I.	A decrease in quantity demanded
	II.	A decrease in demand
	III.	An increase in demand
	IV.	An increase in quantity demanded

Answer 1

1) Supply curve shifts because determinant of supply has changed. Quantity supplied cause movement along the supply curve which occurs due to change in price.

Option B is correct.

2) If marginal product is equal to average product, marginal product is decreasing.

Option C is correct.

3) Extra revenue generated from selling additional unit is marginal revenue.

Option B is correct

4) Option A is incorrect because its demand curve is downward sloping.

Monopoly is the firm which is the industry which makes option B correct

Option C is incorrect because there is only one firm in the indutry.

Option D is incorrect becuase low cross elasticities is related with complement good while there is no substitute available of good produced by monopoly.

5) A good is normal good if increase in buyer's income increase demand. Option C is correct.