THE BMZ ACADEMY
THE BMZ ACADEMY
@061 262 1185/068 053 8213
BMZ ACADEMY 061 262 1185/068 053 8213
, THE BMZ ACADEMY
Question 1
Michael decides that he would pay as much as R3 200 for a new laptop computer. He
buys the computer and realises consumer surplus of R800. How much did Michael pay
for his computer?
a. R3 200
b. R2 400
c. R800
d. R4 000
Question 2
The greater the import quota, the smaller the benefit to domestic industries and the
greater the deadweight loss.
Select one:
True
False
Question 3
When economic profit exists for a firm, it is very feeble because …
a. price will fall because market supply will increase.
b. firms are driven to increase output to the point where average total cost will equal
price.
BMZ ACADEMY 061 262 1185/068 053 8213Page 2 of 207
, THE BMZ ACADEMY
c. costs will inevitably increase and eliminate profit.
d. firms are driven to reduce output until average total cost equals price. Clear my choice
Question 4
There can be constant returns to scale in an industry with an upward-sloping supply
curve.
Select one:
True
False
Question 5
Use the following graph to answer the question.
BMZ ACADEMY 061 262 1185/068 053 8213Page 3 of 207
, THE BMZ ACADEMY
Assume that a firm is producing at the profit-maximising output of q*, and a price of P,
as indicated in the figure above. This is an example of:
a. A competitive firm that should shut down
b. A competitive firm that should exit the market
c. A competitive firm making a loss
d. A competitive firm making a positive profit
Question 6
A small city has a number of hot dog stands operating throughout the CBD area. Suppose
that each vendor has a marginal cost of R1,50 per hot dog sold and no fixed cost.
Suppose the maximum number of hot dogs that any one vendor can sell is 100 per day.
If the vendor market is perfectly competitive, will the price remain R2 for a hot dog?
BMZ ACADEMY 061 262 1185/068 053 8213Page 4 of 207
THE BMZ ACADEMY
@061 262 1185/068 053 8213
BMZ ACADEMY 061 262 1185/068 053 8213
, THE BMZ ACADEMY
Question 1
Michael decides that he would pay as much as R3 200 for a new laptop computer. He
buys the computer and realises consumer surplus of R800. How much did Michael pay
for his computer?
a. R3 200
b. R2 400
c. R800
d. R4 000
Question 2
The greater the import quota, the smaller the benefit to domestic industries and the
greater the deadweight loss.
Select one:
True
False
Question 3
When economic profit exists for a firm, it is very feeble because …
a. price will fall because market supply will increase.
b. firms are driven to increase output to the point where average total cost will equal
price.
BMZ ACADEMY 061 262 1185/068 053 8213Page 2 of 207
, THE BMZ ACADEMY
c. costs will inevitably increase and eliminate profit.
d. firms are driven to reduce output until average total cost equals price. Clear my choice
Question 4
There can be constant returns to scale in an industry with an upward-sloping supply
curve.
Select one:
True
False
Question 5
Use the following graph to answer the question.
BMZ ACADEMY 061 262 1185/068 053 8213Page 3 of 207
, THE BMZ ACADEMY
Assume that a firm is producing at the profit-maximising output of q*, and a price of P,
as indicated in the figure above. This is an example of:
a. A competitive firm that should shut down
b. A competitive firm that should exit the market
c. A competitive firm making a loss
d. A competitive firm making a positive profit
Question 6
A small city has a number of hot dog stands operating throughout the CBD area. Suppose
that each vendor has a marginal cost of R1,50 per hot dog sold and no fixed cost.
Suppose the maximum number of hot dogs that any one vendor can sell is 100 per day.
If the vendor market is perfectly competitive, will the price remain R2 for a hot dog?
BMZ ACADEMY 061 262 1185/068 053 8213Page 4 of 207
