A Quiz On Microeconomics For Pros

30 Questions

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A Quiz On Microeconomics For Pros

If you’re a novice when it comes to microeconomics, then this quiz might be too tough of a task for somebody of your skill level. We’re confident in this one that only pros in the field will be able to achieve full marks, and even then, it’s going to be a challenge to get every single question right. Think you’re one of the select few who can do it? Put your money where your mouth is and prove it!


Questions and Answers
  • 1. 
    A place where demanders and suppliers exchange goods and services is a ...
  • 2. 
    Which of the following work well as definitions of "infrastructure"?a. Essential facilities that add to the capital stock of the economyb. Capital such as roads (often) provided by the government to enable economic activityc. Essential factors such as roads that are necessary for economic activity
    • A. 

      (a.) and (b.)

    • B. 

      (b.) and (c.)

    • C. 

      (a.) and (c.)

    • D. 

      (a.), (b.), and (c.)

  • 3. 
    "As price goes up, demand falls (and vice versa)"This statement is known as the ...
  • 4. 
    A substitute good is a good with [...] cross price elasticity.
  • 5. 
    "An effect following a price change, whereby a consumer is induced to buy a relatively lower-priced good rather than a relatively higher-priced good"What is being defined?
    • A. 

      Income effect

    • B. 

      Law of the veblen good

    • C. 

      Substitution effect

    • D. 

      Normal good

  • 6. 
    Use three words to define "indirect tax"
  • 7. 
    What is a veblen good?
    • A. 

      Good for which demand decreases as price increases because they are necessities

    • B. 

      Good for which demand increases with price as they display wealth

    • C. 

      Good for which demand increase with price as poor Irish eat a lot of potatoes

  • 8. 
    Another word for "maximum price"?
    • A. 

      Ceiling price

    • B. 

      Floor price

    • C. 

      Nice price

    • D. 

      Queuing

  • 9. 
    The law of supply states that "as price goes up, supply [...]
  • 10. 
    Which letter is the most common diagrammatic representation of the point where the plans of supply and demand coincide?
  • 11. 
    When does a "surplus" occur?
    • A. 

      When more is supplied than demanded

    • B. 

      When more is demanded than supplied

    • C. 

      When demand and supply coincide

    • D. 

      When the average weight of citizens in a country is unhealthily high

  • 12. 
    [...] exist when resources can be used for producing different goods or services.
  • 13. 
    Goods that are often used together are known as
  • 14. 
    "As price goes up, real income goes down, and demand falls"What is being described?
    • A. 

      Substitution effect

    • B. 

      Income effect

    • C. 

      Flat rate tax

    • D. 

      Giffen good

  • 15. 
    Minimum/floor price is a price control set [...] market equilibrium
  • 16. 
    Imposing a price control on a market allows the market itself to determine the price
    • A. 

      True

    • B. 

      False

  • 17. 
    Queuing and rationing can be is often caused by shortage
    • A. 

      True

    • B. 

      False

  • 18. 
    What are elasticities a measure of?
    • A. 

      The level of responsiveness of the Government following a change in consumer confidence

    • B. 

      The incidence of a tax

    • C. 

      The change in one variable following a change in another variable

    • D. 

      Parallel market acitivity

  • 19. 
    An illegal market where goods and services are traded outside of government regulations is known as a ...
    • A. 

      Criminal market

    • B. 

      Market of freedom

    • C. 

      Parallel market

    • D. 

      Blue market

  • 20. 
    An indirect percentage tax on a good or a service is known as a(n)
  • 21. 
    In a [...], non-perishable excess commodities are saved up for future times in order to control supply
  • 22. 
    The analysis of the effect of a tax on the distribution of economic welfare, or more simply put, the question of who benefits from a tax, is known as the [...]
  • 23. 
    Determining how the four factors of production are to be used is known as ... (use the term that examiners would like the most)
    • A. 

      Entrepreneurship

    • B. 

      Resource distribution

    • C. 

      Resource allocation

    • D. 

      Labor division

  • 24. 
    "Indirect tax of specific amount"What is being defined?
    • A. 

      Direct tax

    • B. 

      Flat rate tax

    • C. 

      Ad valorem tax

    • D. 

      Tax revenue

  • 25. 
    "The responsiveness of quantity demanded of a good, to changes in the price of another good"What is being defined?
    • A. 

      Income elasticity of demand

    • B. 

      Price elasticity of supply

    • C. 

      Price elasticity of demand

    • D. 

      Cross price elasticity of demand

  • 26. 
    A good for which demand increases with income is known as a ...
  • 27. 
    A good for which demand [...] with income is known as an inferior good
  • 28. 
    A good with an elasticity greater than 1 is known as a(n) ...
    • A. 

      Inelastic good

    • B. 

      Inferior good

    • C. 

      Queuing

    • D. 

      Elastic good

  • 29. 
    A sum of money provided by the government to a producer in order to increase the supply of a certain good/service is known as a(n) ...
    • A. 

      Fine

    • B. 

      Subsidy

    • C. 

      Tax

    • D. 

      Free trade area

  • 30. 
    (YED) is the responsiveness of quantity supplied to changes in income
    • A. 

      True

    • B. 

      False