Abm 311 Intermediate Microeconomics Theory Preliminary Examination

51 Questions | Total Attempts: 26

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Abm 311 Intermediate Microeconomics Theory Preliminary Examination


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

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