# 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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