Microeconomics And Macroeconomics Concepts! Trivia Quiz

10 Questions | By Eperez6 | Last updated: Mar 20, 2022 | Total Attempts: 116

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Microeconomics And Macroeconomics Concepts! Trivia Quiz - Quiz

As an economist, you must have a good understanding of some microeconomics and macroeconomics concepts. Studying economics offers one an idea of how economic phenomena occur; how economic performance might improve and the factors affecting the world economies as a whole. Test your knowledge on the said concepts by taking up this test and be on the lookout for others like it!

Questions and Answers

1.

Mitch has $100 to spend and wants to buy either a new amplifier for his guitar or a new mp3 player to listen to music while working out. Both the amplifier and the mp3 player cost $100, so he can only buy one. This illustrates the basic concept that
- A.
  
  Trade can make everyone better off
- B.
  
  People respond to incentives
- C.
  
  Rational people think at the margin
- D.
  
  People face tradeoffs and opportunity costs.
2.

Economic theory predicts that people make choices in a manner that
- A.
  
  Reflects the fact that resources are unlimited.
- B.
  
  Makes them well liked by others.
- C.
  
  Shows that they do not respond to monetary incentives
- D.
  
  Makes them better off
3.

The rationality assumption says that
- A.
  
  People do not respond to incentives since incentives require scarce resources
- B.
  
  All economic analysis must be normative.
- C.
  
  People do not intentionally make decisions that would leave them worse off
- D.
  
  People never make bad decisions
4.

A point inside a production possibilities curve indicates.
- A.
  
  An output combination that is unattainable with the current resource and technology levels.
- B.
  
  Resources are being used very efficiently.
- C.
  
  Opportunity costs are constant.
- D.
  
  Resources are idle.
5.

Microeconomics is the study of
- A.
  
  How money affects the economy
- B.
  
  How individual households and firms make decisions
- C.
  
  How government affects the economy
- D.
  
  How the economy as a whole works
6.

We know that products G and H are complementary goods, because when the price of G increases
- A.
  
  The quantity of H demanded will move along its demand curve.
- B.
  
  The demand curve for H will shift to the left.
- C.
  
  The demand curve for H will shift to the right
- D.
  
  The demand curve for H will remain unchanged
7.

Change in quantity demanded.
- A.
  
  Can be either a shift or a movement along the demand curve
- B.
  
  Is caused when there is a change in a ceteris paribus factor
- C.
  
  Is a shift of the demand curve
- D.
  
  Is a movement along the demand curve
8.

@font-face { font-family: "Cambria"; }p.MsoNormal, li.MsoNormal, div.MsoNormal { margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: "Times New Roman"; }div.Section1 { page: Section1; } What would happen in the market for rental housing in your community if the local government legally mandated rents that were below the market-clearing price?
- A.
  
  There would be a surplus of rental housing
- B.
  
  The supply of rental housing would decrease.
- C.
  
  There would be a shortage of rental housing
- D.
  
  The demand for rental housing would increase.
9.

Macroeconomics deals with
- A.
  
  Specific sectors within the economy
- B.
  
  The retail industry only
- C.
  
  Decisions made by firms
- D.
  
  Aggregates within the economy
10.

Suppose that a new study finds that eating more peanut butter will improve a person's health. As a result
- A.
  
  The demand for peanut butter will fall
- B.
  
  The price of peanut butter will fall
- C.
  
  A smaller amount of peanut butter will be purchased
- D.
  
  The demand for peanut butter will rise