Microeconomics Quiz

Which of the following is classified as a free resource?

• Wool

• Lumber

• Untreated water in a forest

• Fresh fruit sold in a market

The compensation for the factor of production 'labour' is:

• Salary

• Lease payments

• Profits

• Interest earnings

Opportunity cost is most accurately defined as:

• The monetary price of an item

• The value of the next best alternative foregone

• Total production expenditure

• The amount spent in a transaction

Which producer decision demonstrates opportunity cost?

• Expanding output by hiring additional workers

• Forgoing one product to focus on another

• Compensating employees for extra hours

• Utilizing resources for production

Microeconomics primarily examines:

• National economic trends

• Decisions by individual entities

• Resource allocation among production factors

• Growth at a macroeconomic level

Demand can best be described as:

• The quantity consumers are ready and able to buy at varying prices

• The volume producers are willing to supply

• The essential need for resources

• The expenditure required for production

A change in the price of a product causes:

• A movement along the demand curve

• A shift in consumer preferences

• A rise in production costs

• A fluctuation in supply levels

A demand curve shift is likely triggered by:

• Variations in product price

• A change in consumer income

• Higher raw material costs

• New government wage policies

The term market demand refers to:

• The total demand across all consumers

• The demand of a single buyer

• Demand specific to one price point

• Demand limited to the public sector

What leads to a movement along the supply curve?

• Changes in consumer income

• Modifications to government rules

• Fluctuations in the product's price

• Variations in substitute goods' prices