Microeconomics Quiz

Which of the following best describes what microeconomics focuses on?

• The economy as a whole

• Aggregate economic phenomena

• The behavior of individual economic units

• International trade between nations

Sand prices have increased, causing concrete prices to rise by 3%. What must happen for concrete prices to return to their previous levels?

• Sand prices should continue to rise

• Sand prices should decrease

• Sand prices should return to their previous levels

• Demand for concrete should increase

The truck market is experiencing a sudden influx of buyers. What is the most likely effect on the equilibrium price and quantity of trucks?

• Price will increase; Quantity will increase

• Price will increase; Quantity will decrease

• Price will decrease; Quantity will increase

• Price will decrease; Quantity will decrease

In a market system, prices play a crucial role in the allocation of resources. What is the primary role of the price mechanism in a market system?

• It sets government regulations for resource distribution.

• It determines the fixed salaries of all employees.

• It ensures that resources are distributed equally among all individuals.

• It helps allocate resources based on supply and demand.

When a new phone is released, it increases demand among the public because many people want it at the same time. Which of the following best describes this situation?

• Demand

• Supply

• Market System

• Shortage

When the Price Elasticity of Demand (PED) equals 0, it indicates a specific type of demand elasticity. What does a PED of 0 signify?

• Perfectly elastic demand

• Elastic demand

• Inelastic demand

• Perfectly inelastic demand

A factory releases harmful chemicals into a nearby river, making the water unsafe for people and wildlife. The factory does not pay for the damage it causes. What is this an example of?

• Market equilibrium

• Market failure

• Mixed economic system

• Price mechanism

Unitary elasticity occurs at a specific value of the price elasticity of demand. When does unitary elasticity occur?

• When PED is greater than 1

• When PED is infinity

• When PED is 1

• When PED is 0

Misha went to buy bread, and it cost $1 with the existing demand. A month later, the same bread began to cost 50 cents, but there were more goods available. What is this situation called?

• Market equilibrium

• Market disequilibrium

• Excess demand

• Excess supply

Mariia opened a bookshop in Kyiv a few months ago. What is the correct term to describe this economic field?

• Microeconomics

• Macroeconomics

• A mixed economic system

• Equilibrium