Final revision

What is the slope of indifferent curve for normal goods?

• downward sloping
• upward sloping
• L-shape

Which of the following can best describe the meaning of 3 indifferent curves in this graph below?

• U3 is more prefered to U2 and U1

• U3 is less prefered to U2 and U1

• U1, U2, U3 is equally preferred

What is the meaning of point D in this graph below?

• Consumers use up the budget

• Consumers go over budget

• Consumers can have additional spending

What is the correct budget line function?

• M = PxX + PyY
• M = PxX - PyY
• M = PxY + PyX

Look at the graph below. Which point will maximize consumers' utility

• Point C

• Point A

• Point E

What is the shape of indifferent curve in the case of perfect complements?

• L-shaped
• downward sloping straight lines
• upward sloping straight lines

Which of the following can best defined 'sole trader'?

• a business owned by a single individual
• a business jointly owned by two or more people, sharing the profits and being jointly responsible for any losses
• an organization legally allowed to produce and trade

Which of the following can best describe the characteristic of limited liability company (LLC)?

• shareholders of a company cannot lose more than they have already invested in the business
• shareholders of a company are willing to lose more than they have already invested in the business
• shareholders of a company share the profits and take responsibility for any losses

What can be the correct function of profit?

• Profit = Revenue - Cost
• Profit = Cost - Revenue
• Profit = Revenue + Cost

When can a company maximize their profits?

• Marginal cost = Marginal revenue
• Marginal cost > Marginal revenue
• Marginal cost < Marginal revenue