Microeconomics Quiz

Which of the following is an example used to describe microeconomics?

• Forests not trees

• Oceans not lakes

• Trees not forests

• Mountains not hills

In the supply and demand graph, what does the vertical axis represent?

• Quantity

• Price

• Time

• Cost

What happens to the price when there is a shortage in the market?

• Price increases

• Price decreases

• Price remains constant

• Price becomes zero

What is the perspective of demand according to the document?

• Producer

• Consumer

• Government

• Retailer

In economic graphs, what is typically placed on the y-axis?

• Quantity

• Price

• Time

• Cost

What is the quantity demanded when the price is $5 according to the demand schedule?

• 1

• 2

• 3

• 4

What type of relationship exists between price and quantity supplied according to the Law of Supply?

• Inverse relationship

• Direct relationship

• No relationship

• Complex relationship

What happens to the quantity supplied when the price decreases, according to the Law of Supply?

• It increases

• It decreases

• It remains the same

• It fluctuates

Which of the following best describes the law of supply?

• As price increases, quantity supplied decreases

• As price decreases, quantity supplied increases

• As price increases, quantity supplied increases

• Price and quantity supplied are unrelated

Plot the supply and demand curves and indicate the equilibrium price and quantity.

• $500 and 1000 units

• $900 and 500 units

• $1100 and 800 units

• $1300 and 100 units