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Micro Unit 2- Practice Questions #2

Micro Unit 2- Practice Questions #2

Assessment

Interactive Video

•

Business

•

11th Grade - University

•

Practice Problem

•

Hard

Created by

Wayground Content

FREE Resource

This video tutorial covers various microeconomic concepts, focusing on elasticity, demand, and supply. It explains the law of demand, types of elasticity, and the impact of price changes on total revenue. The tutorial also delves into welfare economics, consumer surplus, and the effects of taxes on market equilibrium. Additionally, it discusses consumer choice and utility, providing examples and practice questions to reinforce understanding.

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10 questions

Show all answers

1.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What does elasticity of demand measure?

The change in price due to a change in quantity

The sensitivity of quantity demanded to a change in price

The supply curve's response to price changes

The total revenue generated by a product

2.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

If a price decrease leads to a larger percentage increase in quantity demanded, the demand is considered:

Inelastic

Unit elastic

Perfectly inelastic

Elastic

3.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What does a negative cross-price elasticity of demand indicate?

The goods are unrelated

The goods are inferior

The goods are complements

The goods are substitutes

4.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Which of the following is true for perfectly inelastic supply?

Supply is highly responsive to price changes

Supply remains constant regardless of price

Supply decreases with price

Supply increases with price

5.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

In welfare economics, what is consumer surplus?

The total cost of production

The difference between what consumers are willing to pay and what they actually pay

The total revenue from sales

The equilibrium price in the market

6.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What happens to consumer surplus when the price of a good decreases?

It remains the same

It increases

It decreases

It becomes negative

7.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

How does a per unit excise tax affect consumers when demand is inelastic?

Consumers pay a smaller portion of the tax

Consumers pay a larger portion of the tax

Producers absorb the entire tax

The tax has no effect on consumers

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