Microeconomics Knowledge Test! Practice Quiz! Trivia

10 Questions | Total Attempts: 29114  Settings  If you are an economics student, then you must know that economics is all about supply, demand, and maximizing income, be it in a business or a country. Have you been having a hard time revising for your microeconomics course work? This quiz is designed to check your economics knowledge. The answers and detailed explanations are given at the end of each question.

• 1.
• A.

• B.

Study of financial position of the economy.

• C.

Study of the Economy at Micro Level.

• D.

None of the above.

• 2.
Law of Demand states that:
• A.

With the increase in price, quantity increases.

• B.

With the increase in price, quantity decreases other things remaining the same.

• C.

Quantity does not change with any increase in price.

• D.

All of the above.

• 3.
The Slope of the Indifference Curve indicates:
• A.

Marginal Rate of Substitution of x for y.

• B.

Prices of x and y.

• C.

Slope of the budget line.

• D.

Change in prices.

• 4.
Production Functions Shows:
• A.

Prices of input and output.

• B.

Relationship between output and input.

• C.

Various combinations of inputs.

• D.

All of the above.

• 5.
The shape of the Total Fixed Cost(TFC) Curve is:
• A.

Verticle

• B.

Horizontal

• C.

45 degree line.

• D.

None of the above.

• 6.
While in Perfect Competition:
• A.

Firms are price taker.

• B.

• C.

Input prices are given.

• D.

None of the above.

• 7.
Model of Monopolistic Competition (i.e Imperfect competition) is characterized by:
• A.

Homogeneous goods.

• B.

Differentiated goods.

• C.

Substitute Goods.

• D.

All of the above.

• 8.
A monopoly is a form of market where there is:
• A.

• B.

• C.

A single firm controlling the market.

• D.

Any of the above.

• 9.
In Duopoly, there is/are:
• A.

Many firms.

• B.

Two firms controlling the Market.

• C.

Large corporations.

• D.

None of the above.

• 10.
Price discrimination is a situation when a producer:
• A.

Charges different prices in different markets.

• B.

Charges same price.

• C.

Charges many prices.

• D.

All of the above.

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