Economics Midterm Study Guide

45 Questions  I  By Xamboozi
Please take the quiz to rate it.

Economics Quizzes & Trivia
Midterm Questions

  
Changes are done, please start the quiz.


Questions and Answers Excerpt

Removing question excerpt is a premium feature

Upgrade and get a lot more done!
1.  Economics
A.
B.
C.
D.
2.  Compared to a perfectly competitive firm, a monopolist:
A.
B.
C.
D.
3.  Economists emphasize the importance of equilibrium in markets because
A.
B.
C.
D.
4.  Which of the following is not necessarily a characteristic of perfect competition?
A.
B.
C.
D.
5.  All final goods and services that make up GDP can be expressed in the form:
A.
B.
C.
D.
6.  A perfectly competitive firm is a price taker because:
A.
B.
C.
D.
7.  The communal nature of a highway means that no one individual is motivated to pay for it because even those who do not pay for it will still benefit from using it. This is an example of:
A.
B.
C.
D.
8.  If Stimpson University increases tuition in order to increase its revenue, it will:
A.
B.
C.
D.
9.  If real GDP increased by 3 percent, then
A.
B.
C.
D.
10.  An improvement in a firm's technology that reduces its production costs will result in a (an):
A.
B.
C.
D.
11.  Oligopolistic industries consist of
A.
B.
C.
D.
12.  Which of the following is the best example of a microeconomic topic?
A.
B.
C.
D.
13.  If the price of peanut butter increases, other things constant, demand for jelly will
A.
B.
C.
D.
14.  As a result of the decline in the demand for beef in the United States, the demand for cattle ranchers has
A.
B.
C.
D.
15.  When the additional satisfaction from a good declines as more of it is consumed, this illustrates the law of
A.
B.
C.
D.
16.  Marginal cost is the:
A.
B.
C.
D.
17.  The short run is a period of time:
A.
B.
C.
D.
18.  Gross Domestic Product (GDP) equals the
A.
B.
C.
D.
19.  A demand curve usually has a
A.
B.
C.
D.
20.  Which of the following statements are true?
A.
B.
C.
D.
21.  A model is defined as a:
A.
B.
C.
D.
22.  Monopolistic competition is identified by
A.
B.
C.
D.
23. 
  National income account (billions of   dollars)  
  Personal consumption expenditures (C) $500  
  Government expenditures (G) 50  
  Gross private domestic investment (I) 300  
  Exports (X) 50 
  Imports (M) 100
  As shown in the above exhibit, GDP as calculated by the expenditure approach is
A.
B.
C.
D.
24.  ____ is the situation in which the marginal product of labor is declining as more labor is hired.
A.
B.
C.
D.
25.  Which of the following is not true regarding a change in quantity demanded?
A.
B.
C.
D.
26.  A minimum wage:
A.
B.
C.
D.
27.  A firm hires labor in a labor market. If the wage rate is $44, the firm should hire
A.
B.
C.
D.
28.  Opportunity cost is defined
A.
B.
C.
D.
29.  A public good:
A.
B.
C.
D.
30.  If all resources are used efficiently to produce goods and services, a nation will find itself producing
A.
B.
C.
D.
31.  The golden rule of profit maximization states that any firm maximizes profit by producing where
A.
B.
C.
D.
32.  If the MPP of an additional unit of labor is 20 units per hour, the product price is $5 per unit, and the wage rate is $60 per hour, then, (Hint: MRP = MPP X p)
A.
B.
C.
D.
33.  Marginal physical product is
A.
B.
C.
D.
34.  Suppose the market for hot pretzels in New York City is perfectly competitive. What is true of demand in this market?
A.
B.
C.
D.
35.  The optimal mix of output is the:
A.
B.
C.
D.
36.  A firm is currently operating where the MC of the last unit produced = $64, and the MR of this unit = $70, i.e. MR > MC. What would you advise this firm to do?
A.
B.
C.
D.
37.  In order to demand a good, the buyer must
A.
B.
C.
D.
38.  Which of the following items is included in the calculation of GDP?
A.
B.
C.
D.
39.  A monopolist is
A.
B.
C.
D.
40.  Macroeconomics is best described as the study of
A.
B.
C.
D.
41.  Which of the following is true for monopoly?
A.
B.
C.
D.
42.  If the tea harvest is very good in a particular year, the supply of tea will be
A.
B.
C.
D.
43.  Market failure occurs when:
A.
B.
C.
D.
44.  The market produces too few public goods because:
A.
B.
C.
D.
45.  If the quantity of concert tickets sold decreases by 10 percent when the price increases by 5 percent, the price elasticity of demand over this range of the demand curve is:
A.
B.
C.
D.
Back to top

Removing ad is a premium feature

Upgrade and get a lot more done!
Take Another Quiz
We have sent an email with your new password.