The Ultimate Quiz On Microeconomics Theory!
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Welcome one, welcome all to the ultimate test in microeconomics – the study that talks economics, which looks at the production, distribution and consumption of goods and services, and fine-tunes it so that we can look at it on a smaller, albeit more detailed scale. Microeconomics deals with how to allocate scarce resources, and we’re going to see how much you know about the theory in this quiz!
- 1.
Demand Curve is?
- A.
Is a downward-sloping curve that illustrates the amount of good that consumers plan to purchase at any given price
- B.
Is a concept that relates amounts people want to obtain to the sacrifices they must make to obtain these amounts
- C.
An additional benefit or cost
- D.
On or at the edge
Correct Answer
A. Is a downward-sloping curve that illustrates the amount of good that consumers plan to purchase at any given priceExplanation
The correct answer is "Is a downward-sloping curve that illustrates the amount of good that consumers plan to purchase at any given price." This explanation accurately describes the demand curve, which shows the relationship between the price of a good and the quantity of that good that consumers are willing and able to buy. As the price of a good decreases, consumers are typically willing to purchase more of it, resulting in a downward-sloping curve.Rate this question:
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- 2.
Marginal Values?
- A.
Change at approximately the same time as the whole economy
- B.
Are indicators that usually change after the economy as a whole
- C.
Are indicators that usually change before the economy as a whole
- D.
The values that matter
Correct Answer
D. The values that matterExplanation
The term "marginal values" refers to the values that are significant or important in a given context. These values can vary and change in relation to the overall economy. Therefore, the correct answer is "The values that matter."Rate this question:
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- 3.
Economic indicator?
- A.
Leading
- B.
Lagging
- C.
Coincedent
- D.
All of the above plus a statistic about the economy
- E.
None of the above
Correct Answer
D. All of the above plus a statistic about the economyExplanation
The correct answer is "all of the above plus a statistic about the economy." This means that an economic indicator can be leading, lagging, coincident, or it can also include a statistic about the economy. Economic indicators are used to measure and predict the performance of an economy. Leading indicators provide insights into future economic trends, lagging indicators confirm or deny the trends, coincident indicators reflect the current state of the economy, and statistics about the economy provide quantitative data to analyze its performance.Rate this question:
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- 4.
Investment?
- A.
Is a simplified, small scale version of some aspect of the economy
- B.
Purchase of capital goods
- C.
Human made productive resources
- D.
All productive effort
Correct Answer
B. Purchase of capital goodsExplanation
The correct answer is "Purchase of capital goods." This means that investment refers to the act of buying capital goods, which are items that are used in the production of other goods and services. Capital goods can include machinery, equipment, buildings, and vehicles, among others. By purchasing these goods, individuals or businesses are investing in the means of production to enhance their productivity and generate future income.Rate this question:
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- 5.
The role of economic theory
- A.
Expand the range of opportunities avaiable to us
- B.
Are the costs of arranging contracts and agreements-trades in general-among interested parties
- C.
Are just as real, just as important impediments to the production of additional wealth as any other kind of cost
- D.
Is a deliverate simplification of factual relationships that attempts to explain how those relationships work
Correct Answer
D. Is a deliverate simplification of factual relationships that attempts to explain how those relationships workExplanation
Economic theory is a deliberate simplification of factual relationships that attempts to explain how those relationships work. It helps to expand the range of opportunities available to us by providing insights and understanding into the costs of arranging contracts and agreements, which are essential for trades among interested parties. These costs are just as real and important as any other kind of cost and can be significant impediments to the production of additional wealth. Economic theory aims to simplify and explain these relationships in order to enhance our understanding of the economic system.Rate this question:
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- 6.
The British economist, who was among the first to articulate the law of comparative advantage
Correct Answer
David Ricardo
RicardoExplanation
David Ricardo was a British economist who is known for his contribution to the law of comparative advantage. He was one of the first economists to articulate this concept, which states that countries should specialize in producing goods and services in which they have a lower opportunity cost compared to other countries. This allows for increased efficiency and trade between nations. Ricardo's work on comparative advantage has had a significant impact on international trade theory and has shaped the way economists understand the benefits of specialization and free trade.Rate this question:
- 7.
...Is more efficient.
- A.
Competitive advantage
- B.
Comparative advantage
- C.
Demand
- D.
Marginal means
Correct Answer
A. Competitive advantageExplanation
Competitive advantage refers to the unique qualities or resources that a company possesses, giving it an edge over its competitors. This advantage allows the company to outperform others in the industry, gain market share, and achieve higher profitability. When compared to the other options listed, such as comparative advantage, demand, and marginal means, competitive advantage is the most relevant and appropriate explanation for why something is more efficient. It implies that the company's superior position enables it to operate more effectively and achieve better results.Rate this question:
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- 8.
Marginal Benefit?
- A.
Are indicators that usually change after the economy as a whole
- B.
An additional benefit or cost
- C.
Are indicators that usually change before the economy as a whole
- D.
Change at approximately the same time as the whole economy
Correct Answer
B. An additional benefit or costExplanation
Marginal benefit refers to the additional benefit or cost that is derived from consuming or producing one more unit of a good or service. It is not related to indicators changing before or after the economy as a whole. Therefore, the correct answer is "An additional benefit or cost."Rate this question:
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- 9.
Economic Model?
- A.
All productive effort
- B.
Voluntary trade is mutually beneficial
- C.
Is a simplified, small scale version of some aspect of the economy
- D.
Human made productive resources
Correct Answer
C. Is a simplified, small scale version of some aspect of the economyExplanation
An economic model is a simplified, small scale version of some aspect of the economy. It is a representation of how different factors interact and influence economic outcomes. Economic models help economists understand and analyze complex economic phenomena by breaking them down into simpler components. These models are used to make predictions, test theories, and guide policy decisions. They allow economists to study the economy in a controlled environment, making it easier to isolate specific variables and understand their impact.Rate this question:
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- 10.
Middlemen?
- A.
On or at the edge
- B.
Is a concept that relates amounts people want to obtain to the sacrifices they must make to obtain these amounts
- C.
Expand the range of opportunities avaiable to us
- D.
The ability to produce something at a lower cost, compared to somebody else
Correct Answer
C. Expand the range of opportunities avaiable to usExplanation
The correct answer is "Expand the range of opportunities available to us". This answer aligns with the concept of middlemen, who play a role in expanding opportunities by connecting buyers and sellers, increasing market reach, and facilitating trade. By acting as intermediaries, middlemen can create new opportunities for both buyers and sellers, enabling them to access a wider range of products or markets.Rate this question:
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- 11.
Lagging?
- A.
Are the costs of arranging contracts and agreements-trades in general-among interested parties
- B.
Are indicators that usually change after the economy as a whole
- C.
Are indicators that usually change before the economy as a whole
- D.
Change at approximately the same time as the whole economy
Correct Answer
B. Are indicators that usually change after the economy as a wholeExplanation
The given answer suggests that the costs of arranging contracts and agreements, also known as trades, are indicators that usually change after the economy as a whole. This implies that these costs tend to lag behind the overall performance of the economy.Rate this question:
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- 12.
Human made productive resources:
- A.
Comparative advantage
- B.
Demand
- C.
Labor
- D.
Capital
Correct Answer
D. CapitalExplanation
Capital refers to the man-made resources used in the production of goods and services. These resources include machinery, tools, equipment, buildings, and infrastructure. Capital plays a crucial role in increasing productivity and efficiency in the production process. It allows businesses to produce more output with the same amount of labor and time, leading to economic growth. Therefore, capital is considered one of the human-made productive resources as it is created by humans to aid in the production of goods and services.Rate this question:
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- 13.
Marginal means?
- A.
On or at the edge
- B.
Voluntary trade is mutually beneficial
- C.
Are indicators that usually change before the economy as a whole
- D.
Change at approximately the same time as the whole eoconomy
Correct Answer
A. On or at the edgeExplanation
The term "marginal" refers to something that is on or at the edge. In this context, it could be interpreted as referring to marginal benefits or costs, which are the additional benefits or costs incurred by producing or consuming one more unit of a good or service. Marginal analysis is often used in economics to make decisions about resource allocation, as it helps to determine whether the benefits of producing or consuming an additional unit outweigh the costs.Rate this question:
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- 14.
Demand?
- A.
Is a concept that relates amounts people want to obtain to the sacrifices they must make to obtain these amounts
- B.
The ability to produce something at a lower cost, compared to somebody else
- C.
All productive effort
- D.
Change at approximately the same time as the whole economy
Correct Answer
A. Is a concept that relates amounts people want to obtain to the sacrifices they must make to obtain these amountsExplanation
Demand is a concept that explains the relationship between the quantities of goods or services that individuals desire to obtain and the sacrifices or costs they are willing to make in order to obtain those quantities. It reflects the willingness and ability of consumers to purchase a particular product or service at various price levels. In other words, demand reflects the trade-off between the desired quantity of a good or service and the sacrifices individuals are willing to make, such as paying a higher price or giving up other goods or services, to obtain that quantity.Rate this question:
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- 15.
...Are the costs of arranging contracts and agreements-trades in general-among interested parties.
- A.
Comparative advantage
- B.
Coincedent
- C.
Leading
- D.
Transaction costs
Correct Answer
D. Transaction costsExplanation
Transaction costs refer to the expenses incurred in the process of conducting trades or agreements between interested parties. These costs include various fees, commissions, and administrative expenses associated with negotiating, drafting, and enforcing contracts. Transaction costs can also include the time and effort spent in searching for suitable partners, gathering information, and resolving disputes. By considering transaction costs, parties involved in a trade can assess the overall expenses and potential risks associated with the transaction, helping them make informed decisions and optimize their resources.Rate this question:
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- 16.
All productive effort:
- A.
Coincedent
- B.
Labor
- C.
Leading
- D.
Comparative advantage
Correct Answer
B. LaborExplanation
Labor is the correct answer because it refers to the physical and mental effort exerted by individuals in the production of goods and services. It is a fundamental factor of production and plays a crucial role in generating economic output. Labor can be both skilled and unskilled, and its productivity can vary depending on factors such as education, training, and technology. Therefore, in the context of the given options, labor is the most appropriate term to describe productive effort.Rate this question:
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- 17.
The ability to produce something at a lower cost, compared to somebody else:
- A.
Competitive advantage
- B.
Coincedent
- C.
Leading
- D.
Comparative advantage
Correct Answer
D. Comparative advantageExplanation
Comparative advantage refers to the ability to produce something at a lower cost compared to someone else. This means that a person or a country has a competitive edge in terms of cost-efficiency in producing a particular good or service. This advantage allows them to specialize in the production of that item and trade with others, resulting in overall economic efficiency and gains from trade. By focusing on producing goods or services where they have a comparative advantage, individuals or countries can maximize their productivity and economic output.Rate this question:
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- 18.
...are indicators that usually change before the economy as a whole.
- A.
Coincedent
- B.
Comparative advantage
- C.
Leading
- D.
Lagging
Correct Answer
C. LeadingExplanation
Leading indicators are economic indicators that typically change before the overall economy does. They provide insights into the future direction of the economy and can help forecast economic trends. By analyzing leading indicators, economists and policymakers can make informed decisions and take appropriate actions to mitigate potential economic downturns or capitalize on economic upturns. These indicators can include factors such as stock market performance, consumer confidence, and business investment.Rate this question:
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- 19.
Change at approximately the same time as the whole economy:
- A.
Lagging
- B.
Competitive advantage
- C.
Coincedent
- D.
Leading
Correct Answer
C. CoincedentExplanation
The term "coincidental" refers to something that happens simultaneously or at the same time. In the context of the question, if a change occurs approximately at the same time as the entire economy, it suggests that the change is coincidental. This means that the change is not causing or leading the economic shift, but rather happening concurrently with it. It implies that the change is not a leading indicator or a lagging indicator, but rather a coincidental factor that is occurring alongside the broader economic changes.Rate this question:
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Mar 16, 2023Quiz Edited by
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Feb 06, 2010Quiz Created by
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