Microeconomics Practice Exam

Front

Which of the following is not a determinate of demand? Producer Expectation, Complementary goods, Consumer Expectations, Inferior goods

Back

Producer Expectation

Front

A price ceiling results in a...

Back

shortage

Front

Consumers buy less of a good when their income falls if the good is...

Back

A normal good

Front

Which of the following causes the demand for hot dogs to decrease? An increase in the price of hamburgers, A decline in the price of hot dogs, An increase in the price of hot dog buns, A decrease in the wages of hot dog makers

Back

An increase in the price of hot dog buns

Front

A lower price of good X causes the demand for good Z to fall if goods X and Z are: Normal goods, Substitute goods, Inferior goods, Complementary goods

Back

Substitute goods

Front

In which of the following are buyers and sellers price takers? Monopoly, Oligopoly, Monopolistic competition, Perfect competition

Back

Perfect competition

Front

Using the graph above which of the following situations would cause the shift of the supply curve from S1 to S2? Options: The government reduces subsidies to wheat farmers. New fertilizers increase wheat crop yields. Firms exit the wheat industry. Drought reduces industry output by 25%.

Back

New fertilizers increase wheat crop yields.

Front

Which form of business organization is easiest to organize but is LEAST able to benefit from specialization?

Back

sole proprietorship

Front

Firm X has developed a new mechanical device and has patented all of the key components used in its production. As the sole producer of this device, Firm X is a...

Back

Monopoly

Front

Which of the following products is most likely to have a relatively inelastic demand? Insulin, Gatorade, Taco Bell, Stamps

Back

Stamps