Fill Up Quiz On Microeconomics

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Microeconomics Quizzes & Trivia

This examination contains vocabulary words for basic microeconomics so for Econ 101 or 102. However as I continue making more quizzes they will be for Econ 102 - Microeconomics. This quiz may contain some stuff primarily geared towards Microeconomics as well! :) ALSO JUST FOR A BY THE WAY THEY ARE ALL FILL IN THE BLANKS TO TEST YOUR KNOWLEDGE AND RANDOMIZED!

Questions and Answers
  • 1. 
     What is the study of how people/society allocate their limited/scarce resources in an attempt to satisfy unlimited wants.
  • 2. 
    What is anything available that could be used to produce goods or services to satisfy people's wants
  • 3. 
  • 4. 
  • 5. 
  • 6. 
    What is the term for getting the most out of a resource; using it in the most productive way
  • 7. 
  • 8. 
  • 9. 
     Adam Smith (1776) -- People acting in their own self-interest are lead as if by an invisible hand to do what is in the best interest of society is called?
  • 10. 
    A situation in which the ingredients for producing the things that people desire are insufficient to satisfy all wants is called what?
  • 11. 
    Any activity that results in the conversion of resources into products that can be used for consumption is called?
  • 12. 
    * This one requires two terms so when doing it denote a comma to seperate the two terms *                                      resources available from nature (earn rent) and  human effort (earns wages) are called
  • 13. 
    Factories, equipment, goods used to make other goods (earn interest)
  • 14. 
    Risk taking and management (earns profit)
  • 15. 
    The highest valued, next best alternative that must be sacrificed when an activity is chosen is called
  • 16. 
      a curve representing all possible combinations of total output that could be produced -- shows opp. cost and scarcity -- shift out is economic growth
  • 17. 
    When one agent can produce more
  • 18. 
    When one agent has a lower opp. cost -- specialize according to comp. adv.
  • 19. 
  • 20. 
    The amount of a good that buyers are willing to purchase at a given price
  • 21. 
    The quantities that buyers are willing to purchase at all prices (a curve)
  • 22. 
    As the price of a good rises the quantity demanded falls
  • 23. 
    Income is fixed so as prices rise, we can afford less
  • 24. 
    As the price of one good rises we will substitute toward other, relatively lower priced goods
  • 25. 
  • 26. 
    The amount of a good made available for sale by producers at a given price (a point)
  • 27. 
    The quantity of a good made available for sale at various prices (a curve)
  • 28. 
    As the price of a good increases the quantity supplied increases
  • 29. 
    The list below demonstrates the following? shift the entire supply curve - increase or decrease quantity over all prices -Input prices -Tech changes -Prices of related goods -Number of producers -Expectations over future prices
  • 30. 
    When a prediction about the future induces actions that cause the prediction to come true
  • 31. 
    When quantity supplied = quantity demanded at a given price
  • 32. 
    Excess supply - when quantity supplied is greater than quantity demanded at the prevailing price - will cause downward pressure on price
  • 33. 
    Excess demand - when quantity demanded is greater than quantity supplied ar the prevailing price - will cause upward pressure on price
  • 34. 
    A measure of the strength of a buyer's or seller's response to a price change
  • 35. 
    Large change in Price, small change in Quantity is an example of what type of elasticity?
  • 36. 
    Small change in price, and large change in quantity is called what type of elasticity?
  • 37. 
    These are all examples of demand elasticity but which is an example of supply elasticity? 1) necessity v. luxury 2) availability of close substitutes 3) time horizon 4) market considered
  • 38. 
    The price a consumer is willing to pay for a good - the demand curve
  • 39. 
    Any amount of value received over the price paid - as P increases, CS falls
  • 40. 
    The cost of producing one more unit of a good - the supply curve
  • 41. 
    Additional value received over the cost of producing - as Price increases, PS rises? What is PS?
  • 42. 
    CS + PS - the benefit to society of trade is the eqution to what?
  • 43. 
    The minimum price allowed by law - must be set above P* to be binding - results in increased PS and decreased CS, and overall decrease in TS
  • 44. 
    The surplus that is not realized because of mutually beneficial trades that cannot take place
  • 45. 
    Maximum price allowed by law - must be below P* to be binding - results in increased CS, decreased PS, and overall decreased TS
  • 46. 
    A consequence of an economic activity that spills over to affect third parties.
  • 47. 
    Private solutions to externalities can be found if we can bargain at low or no cost
  • 48. 
    The costs associated with creating and enforcing contracts
  • 49. 
    Non-rival and non-excludable goods
  • 50. 
    An agent that does not contribute to the cost of a public good but enjoys the benefits of that good
  • 51. 
    The rights of an owner of a good or resource to use it as he wishes
  • 52. 
    When a resource is held in common it tends to be abused
  • 53. 
    A price ceiling is binding when there is a shortage or a surplus?
  • 54. 
    A price floor is binding when there is a shortage or a surplus?
  • 55. 
    The manner in which the burden of a tax is shared among participants in a market is called?