Microeconomics Free Response Practice Quiz

What is the main focus of the 2017 microeconomics free response question discussed in the video?

• Perfect competition and key graphs

• Monopoly market structure

• Oligopoly market dynamics

• Monopolistic competition

When drawing side-by-side graphs for perfect competition, what must be labeled on the market graph?

• Profit and loss

• Demand and supply

• Price and quantity

• Cost and revenue

In the context of perfect competition, what does a horizontal marginal revenue curve indicate?

• The firm is in a monopoly

• The firm is a price maker

• The firm is a price taker

• The firm is in an oligopoly

What happens to the corn market in the short run when the demand for ethanol increases?

• Demand shifts right

• Price decreases

• Supply shifts left

• Quantity decreases

How is profit represented on the graph when the price increases in the short run?

• Box between price and ATC

• Area below the supply curve

• Line from price to quantity

• Area above the demand curve

In the long run, what happens to the supply curve in the corn market when firms enter due to profit?

• Becomes vertical

• Remains unchanged

• Shifts to the right

• Shifts to the left

Why is it important to explain your answer when asked to do so in a test?

• To earn partial credit

• To demonstrate understanding

• To fill space

• To confuse the examiner

What effect does an increase in corn prices have on soybean supply?

• No effect

• Decreases supply

• Increases demand

• Increases supply

What is a binding price ceiling?

• A price set above equilibrium

• A price set below equilibrium

• A price that increases supply

• A price that has no effect

In a market with a binding price ceiling, what determines the quantity purchased by consumers?

• Quantity demanded

• Quantity supplied

• Market equilibrium

• Consumer preference