Basic Microeconomics

Please choose the most appropriate answer for each sentence.
  • 1

    A ..... concept in understanding microeconomics is that of utility: utility is how much a product pleases people.

  • 2

    Marginal utility is how much every ..... quantity of a product pleases; it tends to drop as the numbers of a product consumed increases.

  • 3

    Consumers choose what products they want to buy by comparing something's ..... and its utility.

  • 4

    They will pick the product that gives them the biggest ..... for the buck, the product that gives them the greatest satisfaction for every unit of money spent.

  • 5

    Based on the law of demand, quantity demanded is inversely ..... to price.

  • 6

    'Perfect competition' is defined as economic forces ....., uninterrupted by any other force.

  • 7

    In reality, no ..... thing as a true perfectly competitive market exists; there are other types of market structures, however - monopoly, oligopoly, and monopolistic competition.

  • 8

    In monopolistic competition, there are many firms ..... for control of one market.

  • 9

    Oligopoly is a small number of competing firms, so the key property of oligopolies is that all firms ..... strategic planning.

  • 10

    Some oligopolies act as cartels, in which many firms act ......

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