Enhance Your Knowledge Of Microeconomics With This Quiz!

35 Questions | Total Attempts: 824

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Microeconomics Quizzes & Trivia

Enhance your knowledge of microeconomics with this quiz! 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!


Questions and Answers
  • 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. 
    In the circular flow of the market economy,
    • 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. 
    All of the following are likely to cause an increase in the supply of beef except:
    • 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. 
    Minimum wage legislation leads to
    • 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. 
    If the quantity demanded of chocolate chip cookies falls from 10 pounds to 5 pounds when the price of the cookies rises from $4.00 to $5.00, the price elasticity of demand is
    • 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. 
    The elasticity of demand for a good that has a lot of close substitutes is likely to be
    • 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. 
    An (own) price elasticity of demand of -1.5 means that:
    • 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