Abm 311 Intermediate Microeconomics Theory Preliminary Examination

51 Questions | By Ednamunozvaldez | Updated: Mar 21, 2022 | Attempts: 97

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Abm 311 Intermediate Microeconomics Theory Preliminary Examination - Quiz

Questions and Answers

1.

State the law of demand.
2.

Explain the law of demand in your own words. Cite an example.
3.

State the law of supply.
4.

Explain the law of supply in your own words. Cite an example.
5.

Interpret the encircled graph.
6.

Interpret the encircled graph.
7.

Interpret the encircled graph.
8.

Interpret the encircled graph.
9.

It studies how individuals, firms, and society choose to combine scarce resources (land, labor, capital, and management) to satisfy unlimited wants and best meet consumer needs.
- A.
  
  Economics
- B.
  
  Microeconomics
- C.
  
  Macroeconomics
- D.
  
  None of the above
10.

Which of the following are considered scarce resources, often referred to as the factors of production.
- A.
  
  Land
- B.
  
  Machineries
- C.
  
  Building
- D.
  
  Labor
- E.
  
  Capital
- F.
  
  Human resources
- G.
  
  Management
11.

What are the areas in the study of Economics?
- A.
  
  Supply
- B.
  
  Demand
- C.
  
  Microeconomics
- D.
  
  Macroeconomics
12.

It focuses on how individual consumers and firm make decisions; these individuals can be a single person, a household, a business/organization or a government agency.
- A.
  
  Economics
- B.
  
  Microeconomics
- C.
  
  Macroeconomics
- D.
  
  None of the above
13.

[Blank] tries to explain how they respond to changes in price; why they demand and what they do at particular price levels.
14.

[Blank] studies an overall economy on both a national and international level.
15.

The focus of [Blank] can include a distinct geographical region, a country, a continent, or even the whole world.
16.

[Blank] and [Blank] are the broad groups of individual economic units.
17.

[Blank] include consumers, who purchase goods and services, and firms, which buy labor, capital, and raw materials, which they use to produce goods and services.
18.

[Blank] include firms, which sell their goods and services; workers who sell their labor services; and resource owners, who rent land or sell mineral resources to firms.
19.

It is a collection of buyers and sellers and interact, resulting in the possibility for exchange.
- A.
  
  Industry
- B.
  
  Market
- C.
  
  Production
- D.
  
  None of the above
20.

It is a collection of firms that sell the same or closely related products. In effect, it is the supply side of the market.
- A.
  
  Industry
- B.
  
  Market
- C.
  
  Production
- D.
  
  None of the above
21.

[Blank] is defined as the quantities that sellers are willing and able to place on the market at different prices during a particular time period
22.

[Blank] is the quantity that consumers are willing and able to buy in the market at various prices during a particular time period.
23.

The amount of a good that buyers purchase at a higher price is more because as the price of a good goes up, so does the opportunity cost of buying that good.
- A.
  
  True
- B.
  
  False
24.

As a result of increasing price of goods, people will naturally avoid buying a product that will force them to forgo the consumption of something else they value more.
- A.
  
  True
- B.
  
  False
25.

Producers supply more at a higher price because selling a higher quantity at a higher price increases revenue.
- A.
  
  True
- B.
  
  False