Unit 1 -- Microeconomics (POST Assessment)

Which economic system relies heavily on tradition, customs, and beliefs to guide economic decisions?

• Market

• Command

• Traditional

• Mixed

In a command economy, economic decisions are primarily made by:

• Individuals

• Businesses

• The government

• Consumers

Which of the following is NOT a characteristic of a market economy?

• Private ownership of resources

• Profit motive

• Central planning

• Competition

The United States economy is best described as a:

• Pure market economy

• Mixed economy

• Command economy

Opportunity cost refers to:

• The total cost of producing a good or service

• The value of the next best alternative given up

• The monetary cost of a purchase

• The cost of all resources used in production

A monopoly is a market structure characterized by:

• A single seller

• Many sellers

• A few large sellers

• Perfect competition

A partnership is a business owned by:

• A single individual

• Two or more people

• A corporation

• The government

The law of demand states that:

• As price increases, quantity demanded increases

• As price increases, quantity demanded decreases

• Price has no effect on quantity demanded

• Quantity demanded is always greater than quantity supplied

A shift in the demand curve to the right indicates:

• An increase in demand

• A decrease in demand

• No change in demand

• A change in price

Equilibrium price is the price at which:

• Quantity demanded is greater than quantity supplied

• Quantity supplied is greater than quantity demanded

• Quantity demanded equals quantity supplied

• There is a shortage of the product