Microeconomics And Macroeconomics Concepts! Trivia Quiz

10 Questions | 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

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