Microeconomics Review: Quiz
The study of microeconomics looks at how an individual or firm analyses their situations and decides how to allocate a scarce supply of resources in an efficient and effective manner. In the following review quiz, we’re going to take a look at how much you know about how this study works and what is covered within its subject matter. Think you can score full marks? Let’s see if you’re right!
- 1.
Marginal revenue for the perfectly competitive firm equals:
- A.
The addition to total cost from producing one more unit of output
- B.
Average revenue at all levels of output
- C.
Marginal cost at all levels of output
- D.
Average total cost at all levels of output
Correct Answer
B. Average revenue at all levels of outputExplanation
In the perfectly competitive firm, we are price takers, and must accept market price, whatever it may be.
Therefore MR = P = ARRate this question:
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- 2.
The perfectly competitive firm is a price _______________.
Correct Answer
taker - 3.
In a monopoly seeking to maximize its profit, the level of output will be less than if there was was competition in the marketplace.
- A.
True
- B.
False
Correct Answer
A. True -
- 4.
Which of the following statements are true about a factory operating at its most efficient level?
- A.
Marginal product is at the highest level possible
- B.
Marginal product is at the lowest level possible
- C.
Marginal cost is at the highest level possible
- D.
Marginal product is at the lowest level possible
Correct Answer(s)
A. Marginal product is at the highest level possible
D. Marginal product is at the lowest level possible -
- 5.
In one or two sentences, describe what economists mean by the invisible hand of the marketplace.
Quiz Review Timeline +
Our quizzes are rigorously reviewed, monitored and continuously updated by our expert board to maintain accuracy, relevance, and timeliness.
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Current Version
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May 08, 2019Quiz Edited by
ProProfs Editorial Team -
Feb 26, 2011Quiz Created by
JimJohnston
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