Enhance Your Knowledge On Microeconomics With This Quiz
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There are certain topics in this world that you may not know or may never have any intention of knowing about, but one thing that everybody should have a foundation level of knowledge in is the subject of business and economics. Today, we’ll be dipping a toe into that pool by enhancing your knowledge on microeconomics. Think you can get all of the questions correct? Let’s find out!
- 1.If a society is at point that is inside the production possibilities frontier, the society is experiencing
- A.
Inefficiency
- B.
Maximizing output
- C.
Equity
- D.
Efficiency
- 2.
- A.
Decrease in the quantity produced of one good as we move along the production possibilities frontier
- B.
Increase in the quantity produced of one good as we move along the production possibilities frontier
- C.
Increase in the quantity produced of one good divided by the decrease in the quantity produced of another good as we move along the production possibilities frontier
- D.
Decrease in the quantity produced of one good divided by the increase in the quantity produced of another good as we move along the production possibilities frontier
- 3.When we cannot produce more of any one good without giving up some other good that we value more highly, we haved achieved?
- A.
Production efficiency
- B.
Inefficiency
- C.
Equal opportunity
- D.
Allocative efficiency
- 4.An upward or outward shift in the production possibilities frontier is indicative of?
- A.
Inefficiency
- B.
Efficiency
- C.
Economic growth
- D.
Equity
- 5.
- A.
Households are sellers in resource markets and buyers in goods markets
- B.
Households are buyers in resources markets and sellers in goods markets
- C.
Firms are sellers in resource markets and buyers in goods markets
- D.
Households are excluded and only firms are represented
- 6.The amount that consumers plan to buy during a given time period at a particular price is the?
- A.
Quantity demanded
- B.
Demand
- C.
Supply
- D.
Quantity supplied
- 7.When the price of a good or service rises, ceteris paribus, its opportunity cost..
- A.
Remains the same
- B.
Cannot be determined
- C.
Rises
- D.
Falls
- 8.
- A.
Decrease
- B.
Remain the same
- C.
Increase
- D.
Decrease initially and then increase
- 9.A good whose demand increases as income increases is a
- A.
Complement
- B.
Inferior good
- C.
Normal good
- D.
Subsitute
- 10.If the price of a good or service falls , ceteris paribus, there is a?
- A.
Rightward shift in the supply curve
- B.
Leftward shift in the supply curve
- C.
Movement up along the supply curve
- D.
Movement down along the supply curve
- 11.
- A.
An increase in the number of cattle ranchers
- B.
An increase in the demand for chicken
- C.
An increase in the demand for leather goods
- D.
A fall in the price of feed grain that is fed to cattle
- 12.A market moves toward its equilibrium through adjustments in
- A.
Quantity
- B.
Price
- C.
Supply
- D.
Demand
- 13.
- A.
A decrease in both price and quantity
- B.
An increase in both price and quantity
- C.
An increase in price and a decrease in quantity
- D.
A decrease in price and an increase in quantity
- 14.A price ceiling can cause an excess demand which leads to an illegal market in which the price exceeds the legally imposed price ceiling that is called a
- A.
Free market
- B.
Black market
- C.
Free trade market
- D.
Regulated market
- 15.A minimum wage is an example of
- A.
A tax
- B.
Price ceiling
- C.
Price floor
- D.
Subsidy
- 16.
- A.
Efficiency
- B.
Economic growth
- C.
Unemployment
- D.
Capital accumulation
- 17.
- A.
Quantity demanded to change in the price of a good, ceteris paribus
- B.
Price to a change in the quantity demanded of a good, ceteris paribus
- C.
Price to a change in the quantity supplied of a good, ceteris paribus
- D.
Quantity supplied to a change in the price of a good, ceteris paribus
- 18.
- A.
3
- B.
5 pounds
- C.
$1.00
- D.
1/3
- 19.If the price elasticity of demand is 3.5, an increase in price will
- A.
Increase total revenue
- B.
Have no effect on total revenue
- C.
Decrease total revenue
- D.
Have an unpredictable effect on total revenue
- 20.If a price cut decreases total revenue, demand is
- A.
Unit elastic
- B.
Relatively elastic
- C.
Relatively inelastic
- D.
Perfectly elastic
- 21.Factors that influence the elasticity of demand inculde all of the following except
- A.
Resource substitution possibilities
- B.
Closeness of substitutes
- C.
Time elapsed since a price change
- D.
Proportion of income spent on the good
- 22.
- A.
Have an elasticity of zero
- B.
Elastic
- C.
Inelastic
- D.
Unit elastic
- 23.The income elasticity of demand for an inferior good is
- A.
Equal to zero
- B.
Greater than zero
- C.
Equal to one
- D.
Less than zero
- 24.
- A.
The price changes by $2.50 when quantity changes by one unit
- B.
Quantity demanded decreases by 2.5% when the price rises by 1%
- C.
The price rises by 2.5% when quantity demanded falls by 1%
- D.
Quantity demanded falls by 2.5 units when price changes by $1
- 25.
- A.
Demand is elastic
- B.
Quantity demanded changes 1.5 units for each 1% change in price
- C.
Quantity demanded changes .5% for each 1% change in price
- D.
Quantity demanded changes 5% for each 1% change in price
- 26.
- A.
-.05
- B.
-4
- C.
-.25
- D.
-.20
- 27.
- A.
2%
- B.
4%
- C.
8%
- D.
16%
- 28.
- A.
0.14
- B.
0.3
- C.
3.3
- D.
5
- 29.Price Quantity $2.40 90 2.60 80 2.80 60 3.00 40 3.20 20 Demand between $2.40 and $2.60 is:
- A.
Elastic
- B.
Unit elastic
- C.
Inelastic
- D.
Perfectly elastic
- 30.Cross-Price elasticity of demand is defined as the percentage change in____ divided by the percentage change in_____ of a related good.
- A.
Quantity, price
- B.
Quantity, quantity
- C.
Price, quantity
- D.
Price, price
- 31.
- A.
Positive
- B.
Greater than 1
- C.
Negative
- D.
Equal to 1.
- 32.For complements, cross-price elasticity is:
- A.
Negative
- B.
Positive
- C.
Between zero and one only
- D.
Zero
- 33.For subsitutes, cross price elasticity is:
- A.
Negative
- B.
Positive
- C.
Between zero and one only
- D.
Zero
- 34.If the demand curve is perfectly inelastic the burden of a tax on suppliers is borne:
- A.
Entirely by the suppliers
- B.
Entirely by the consumers
- C.
Mostly by the suppliers and partly by the consumers, if the demand curve
- D.
Partly by the suppliers, and mostly by the consumers, if the demand curve is elastic.
- 35.
- A.
Equal to one
- B.
Less than zero
- C.
Equal to one
- D.
Less than zero
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