The fundamentals of microeconomics

1. The term ‘Opportunity cost’ means:
2. Fixed costs, in a business, include:
3. Perfect competition is a market structure, where:
4. The equilibrium price, in a market, has the attribute of:
5. Monopolistic price occurs in a market, where...
6. The assets of an economic agent include:
7. When a business incurs net loss after tax, the amount of the loss...
8. If you borrow $10 000 from a bank, for 2 years, at an interest rate of 7% a year, you have to pay back, in total:
9. A mortgage is a specific type of loan, which...
10. The assets of a business are worth €400 000, its liabilities are €150 000, and its profit for the last fiscal year is €30 000. The rate of return on equity (ROE) in this business is calculated as...
11. You invested €100 000 in a business. In the first year of operations, you had a net loss of €5000, in the second year you just reached the break-even point, and during the following 3 years you had a net profit of €15 000 a year. Your net cash flow after 5 years is:
12. An isoquant (or indifference curve) is...
13. What if, in a Marshallian local equilibrium of a market, demand grows whilst other factors remain constant?
14. Moral depreciation is a loss of value, which...
15. In a given market, in Marshallian equilibrium, the function of demand, in consumers, is expressed as Q = €2000 / P, where Q is quantity and P is price. It means that...
16. In a given market, in Marshallian equilibrium, the function of demand, in consumers, is expressed as Q = 5 + (300/P), where Q is quantity and P is price. The function of supply, in suppliers, is P = 4 + (5000/Q). The equilibrium price in this market has to meet the condition:
17. The Giffen’s paradox tells us that:

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