Trivia Questions Over Microeconomics

11 Questions | By John Holman | Updated: Mar 18, 2022 | Attempts: 341

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Trivia Questions Over Microeconomics - Quiz

It’s a topic that comes in extremely handy to know about when you work in a business, but even if you don’t, you’re probably engaged in a smaller example of microeconomics while attempting to spend less money at the store or figure out how to deal with a new, lower-paying job. Microeconomics deals with how to allocate scarce resources and we’ll learn all about it today in this quiz!

Questions and Answers

1.

What is a perfectly elastic demnd?
- A.
  
  A condition in which a small percentage change in price bring about a infinite percentage change in quantity demanded.
- B.
  
  A condition in which the percentage change in quantity demanded is equal to the percentage change in price
- C.
  
  A condition in which the percentage change in quantity demanded is less than the percentage change
- D.
  
  A condition in which the percentage change in quantity demanded is greater than the percentage change in price.
- E.
  
  None of the above.
2.

is a condition in which the percentage is change in quantity is greater than the percentage change in price.
3.

Is the amount of satisfaction received from all units of a good or service consumed.
4.

is the principle that the extra satisfaction provided by a good or service declines as people consume more in a given period.
5.

Is a condtion in which total utility cannot increase by spending more on of a given budget on one good and spending less on another.
6.

What states that the marginal utility of a good or service eventually declines as consumption increases.
7.

Which effect is this? As the price falls, the comsumer substitutes the cheaper good for other goods that are now relatively more expensive.
8.

Which effect is this? As the price falls, real purchasing power increases, causing an increase in the consumer's willingness and ability to purchase goods or srvice
9.

As an individual consumes more of a given good, the marginal of that good to the consumer
- A.
  
  Rises at an increasing rate.
- B.
  
  Rises at a decrease rate.
- C.
  
  Falls.
- D.
  
  Rises
10.

The amount of added utility that a consumer gains from the comsumption of one more unit of a good is called
- A.
  
  Incremental utility
- B.
  
  Total utility
- C.
  
  Diminishing utlity
- D.
  
  Marginal utility
11.

What it the significance of the ''water and diamond" saying?