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WorksheetsGeneral Micro Review 1
Total questions: 54
Worksheet time: 38mins
Name
Class
Date
1.
(2) Which of the following resources would economists classify as “capital”?
a)
Raw Bauxite in a South African mine
b)
A hammer used in framing a house
c)
A worker hired to repair engines
d)
Trees used to make paper
2.
The United States has decided to spend more money on military goods and less on education. The opportunity cost for spending more money on military goods would be which of the following?
a)
the satisfaction of destroying our enemies
b)
the money used to fund the military
c)
money to spend on education
d)
better paid soldiers
3.
Movement along the Demand curve to the right is called
a)
decrease in demand
b)
decrease in quantity demanded
c)
increase in demand
d)
increase in quantity demanded
4.
As the price of a good rises in a market, it acts as a signal:
a)
consumers that they should buy a greater quantity of the good.
b)
to producers that they should supply a greater quantity of the good.
c)
to consumer that they should increase their demand for the good.
d)
to producers that they should increase their supply of the good.
5.
The ideal price and level of output occurs where
a)
Marginal Revenue and Marginal Cost cross
b)
MR = AVC
c)
Average Fixed Cost equal ATC
d)
MR = MT
6.
A point above the PPF curve represents
a)
efficiency
b)
inefficiency
c)
Unemployment
d)
Unattainable
7.
When economists measure the responsiveness of consumers to changes in price, they are measuring:
a)
the percentage change in price
b)
the price elasticity of demand.
c)
the price elasticity of supply.
d)
income elasticity.
8.
Organizers of many high-interest sporting events such as the Super Bowl and the World Series usually set ticket prices lower than the equilibrium price, citing fairness to the public as their reason. What names do economists give to the resulting set price and disequilibrium situation?
a)
price ceiling; surplus
b)
price ceiling; shortage
c)
price floor; shortage
d)
price floor; surplus
9.
In which market structure does a firm have greatest control over its product’s price?
a)
perfect competition
b)
monopoly
c)
oligopoly
d)
monopolistic competition
10.
Interdependence and price leadership are characteristics of firms in what kind of market structure?
a)
monopoly
b)
oligopoly
c)
monopolistic competition
d)
perfect competition
11.
Toal Costs=
a)
Variable Costs- Fixed Costs
b)
Fixed Costs - Variable Costs
c)
Fixed Costs + Variable Costs
d)
Variable Costs Divided By Fixed Costs
12.
An Increase in Supply or a shift of the supply curve to the right occurs when:
a)
A rise in input costs happens
b)
If Government pays subsidies for a good.
c)
If producers expect the price to fall in the future.
d)
If government regulates a good.
13.
A decrease in supply or a shift of the supply curve to the left:
a)
If more suppliers enter the market place.
b)
A fall in the cost of an input occurs.
c)
If government ends regulation.
d)
If government places an excise tax on goods.
14.
What Price would make an effective Price to set a Price Ceiling?
a)
340
b)
320
c)
280
15.
If the Price is $2, there will be...
a)
A surplus of 45
b)
A shortage of 85
c)
A shortage of 45
d)
A surplus of 85
16.
What is the major difference between scarcity and a shortage?
a)
They are really the same
b)
Shortages always exist and scarcity is temporary
c)
Shortages are temporary and scarcity always exist.
d)
Scarcity is limited and shortages are unlimited
17.
If you pay $5,000 a year in tuition and give up $20,000 a year of income to attend college, then the yearly opportunity cost of college is:
a)
only $5,000 of tuition.
b)
only $20,000 of foregone income.
c)
at least $25,000 of tuition and foregone income.
d)
less than $20,000 and more than $5,000.
18.
Which country has the Absolute Advantage in producing cars?
United States: 50 Cars = 2 Planes
Great Britain: 40 Cars = 2 Planes
United States: 50 Cars = 2 Planes
Great Britain: 40 Cars = 2 Planes
a)
United States
b)
Great Britian
c)
Neither
d)
Both
19.
This market structure has 3-4 firms who dominate 60-80% of the industry.
a)
Monopoly
b)
Monopolistic Competitio
c)
Perfect Competitio
d)
Oligopoly
20.
In the 1950s in the United States, the car industry was dominated by GM, Ford and Chrysler. This is an example of:
a)
A monopoly
b)
Monopolistic Competitio
c)
Perfect Competitio
d)
An oligopoly
21.
In the 1990s, AT&T controlled 80% of the phone industry and was the ONLY provider of long distance phone service. This is an example of
a)
A monopoly
b)
Monopolistic Competition
c)
Perfect Competition
d)
Oligopoly
22.
This is an illegal act in which companies agree to set the price of their good or service the same.
a)
Commodity
b)
Commercializatio
c)
Barrier to entry
d)
Collusion
23.
Which of the following is NOT an example of non-price competition?
a)
Locatio
b)
Brand name/image/status
c)
Service level
d)
All of the above are examples of non-price competition
24.
Which of the following is a NEGATIVE externality?
a)
Polluition
b)
Coming to school sick
c)
Blasting loud music outside in the middle of the night
d)
All of the above
25.
Goods that are provided by the government (and paid for through taxation) are known as:
a)
Private goods
b)
Public Goods
c)
Cartels
d)
Commodities
26.
Police protection is an example of a _ good and apples are an example of a _ good.
a)
Public; Private
b)
Private; Public
c)
Public; Public
d)
Private; Private
27.
A person who does not pay for a good but benefits from it anyways is known as a
a)
Jerk
b)
Free rider
c)
Cartel
28.
This type of monopoly exists because it is efficient to allow one producer to be the only provider. Xcel energy being the sole provider of electricity in my neighborhood is an example of this.
a)
Franchise
b)
Patent/copy right
c)
Natural Monopoly
d)
Resource Monopoly
29.
This is the most difficult market structure to enter based on the number of producers and high barriers to entry
a)
Monopoly
b)
Monopolistic Competition
c)
Perfect Competition
d)
Oligopoly
30.
This market structure can act like a monopoly when the firms all set prices the same
a)
Monopoly
b)
Monopolistic Competition
c)
Perfect Competitio
d)
Oligopoly
31.
The market structure likely to have the lowest prices is:
a)
Monopoly
b)
Monopolistic Competition
c)
Perfect Competition
d)
Oligopoly
32.
A market structure is the organization of a industry mainly by the degree of
a)
Competition
b)
Success
c)
Costs
d)
Benefits
33.
Which type of market structures has many many producers(companies) that sell identical products and has no control over price?
a)
perfect competition
b)
monopolistic competition
c)
oligopoly
d)
monopoly
34.
Which market structure only has one company that controls the market? This type of market structure is illegal in the United States
a)
Oligopoly
b)
Monopoly
c)
Perfect Competition
d)
Monopolistic Competition
35.
The soda market would be which type of market structure?
a)
monopoly
b)
oligopoly
c)
perfect competition
d)
monopolistic competition
36.
What would be an example of a type of a NATURAL monopoly?
a)
NFL
b)
city water company
c)
Coca-Cola in a school
d)
CBS station in Indy
37.
What practice did Microsoft get in trouble for in the 90's?
a)
predatory pricing
b)
price discrimination
c)
non-price competition
d)
exclusionary practices
38.
"Senior discounts" would be an example of...
a)
predatory pricing
b)
price discrimination
c)
fringe benefits
d)
non-price competition
39.
Are items that are considered necessities
a)
Price-Elastic
b)
Price-Inelastic
c)
Price-flexible
d)
Price-unflexible
40.
The formula for calculating elasticity of demand is:
a)
The % change in price over the % change in quantity demanded
b)
The % change in quantity demanded over the % change in price
c)
The change in price over the change in quantity demaned
d)
The change in quantity demanded over the change in price
41.
Consuming more of one good because of a change in price of another good is known as the
a)
income effect
b)
substitution effect
c)
elasticity effect
d)
demand effect
42.
This occurs when you feel like you have less money when the price of a good rises.
a)
Income Effect
b)
Substitution Effect
c)
Demand Effect
d)
Inflation Effect
43.
Which factor causes the demand curve to shift in the following situation: Bobby graduated from college and got a good job, so he decided to buy a new 2016 Passat.
a)
income
b)
population
c)
consumer tastes & advertising
d)
prices of related goods
44.
Which economic concept is defined as the measure of how responsive consumers are to a price change?
a)
consumer expectations
b)
consumer taste
c)
decreasing marginal utility
d)
elasticity of demand
45.
What is a complement?
a)
When the price of one good increases, the demand for the other decreases
b)
When the price of one good increases, the price of the other increases
c)
When the demand of one good increases, the price of the other decreases
d)
When the supply of one good increases, the demand of that good increases
46.
The following is a factor that will not cause the demand curve to shift:
a)
Advertising
b)
Population
c)
Price
d)
Consumer expectations
47.
What is a positive externality?
a)
a way to generate trade that will benefit people who are from other countries
b)
an economic side effect that generates unexpected benefits
c)
a cash flow that will benefit both the government and the businesses who interact with it
d)
an extra payment to welfare recipients
48.
Which of the following is a critical rule for determining whether something is a public good?
a)
The benefit to each individual who uses the facility is greater than the cost.
b)
The benefits of the facility are greater for the society than for the individuals using it.
c)
The total benefits to society are greater than the total cost.
d)
The total cost is small for each individual taxpayer.
49.
Which of the following is NOT an example of a public good?
a)
shopping malls
b)
national parks
c)
highways
d)
municipal libraries
50.
An externality is
a)
an economic side effect of a good or service that generates benefits or costs to someone other than the person deciding how much to produce or consume.
b)
the total cost to society of producing an additional unit of a good or service.
c)
the amount a consumer pays to consume an additional amount of any particular good.
d)
a situation in which the market, on its own, does not distribute resources efficiently.
51.
Which of the following is the best example of a public good?
a)
highway system
b)
shopping mall
c)
country club
d)
movie theater
52.
You will still be able to get public broadcasting whether or not you contribute to their fundraising campaign. You decide not to contribute. This is an example of the
a)
public good problem.
b)
public sector problem.
c)
externality problem.
d)
free-rider problem.
53.
A new runway has opened up at the airport, and the flight path goes directly over your apartment. The noise of the airplanes is a
a)
positive externality.
b)
free-rider problem.
c)
negative externality.
d)
market failure.
54.
A situation in which goods are not fairly distributed
a)
welfare
b)
market failure
c)
cash transfers
d)
public policy
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