WorksheetsMicroeconomics Test Review
Total questions: 20
Worksheet time: 11mins
Name
Class
Date
1.
VOCABULARY: The lowest legal wage that can be paid to workers.
a)
Minimum Wage
b)
Price Ceiling
c)
Subsidy
d)
Price-Fixing
2.
VOCABULARY: Agreement of competing businesses to set specific prices of goods/services.
a)
Price Ceiling
b)
Price Floor
c)
Demand
d)
Price-Fixing
3.
VOCABULARY:The combination of desire, ability, and willingness to buy a product.
a)
Demand
b)
Supply
c)
Equilibrium Price
d)
Price Floor
4.
VOCABULARY: Market structure where only a few very large sellers dominate an industry.
a)
Monopoly
b)
Oligopoly
c)
Supply
d)
Demand
5.
VOCABULARY: The amount of any given commodity available for sale at a given time.
a)
Subsidy
b)
Demand
c)
Supply
d)
Price Floor
6.
VOCABULARY: Market structure with only a single seller of a particular product.
a)
Oligopoly
b)
Demand
c)
Supply
d)
Monopoly
7.
VOCABULARY: The lowest legal price that can be paid for a good or service.
a)
Price Floor
b)
Price Ceiling
c)
Minimum Wage
d)
Subsidy
8.
VOCABULARY: A maximum legal price that can be charged for a product.
a)
Price Floor
b)
Price Ceiling
c)
Subsidy
d)
Minimum Wage
9.
VOCABULARY: Real or perceived differences between competing products in the same industry.
a)
Price-Fixing
b)
Supply
c)
Demand
d)
Product Differentiation
10.
In general, when does a Monopoly become bad?
a)
When they drop prices of a good, which does not hurt consumers
b)
When they rise the price of a good, which could hurt consumers
c)
Only when they own over 95% of the market on a particular good or service
d)
All of the above
11.
By limiting the amount of diamonds in circulation, and over-advertising the message that diamonds are the best representation of one’s expression of love, the De Beers Diamond Co. was effectively manipulating what two factors of economics?
a)
Rise and Run
b)
Risk and Reward
c)
Surplus and Shortage
d)
Supply and Demand
12.
When too many watermelons are harvested, a market might be said to have a ‘surplus’, because more watermelons are produced then are demanded. What is likely to happen to the price of watermelons under these conditions?
a)
The price would fall
b)
The price would stay the same
c)
The price would rise
d)
None of the Above
13.
When not enough watermelons are harvested to meet demand, a market might be said to have a ‘shortage’. What is likely to happen to the price of watermelons under these conditions?
a)
The price would fall
b)
The price would rise
c)
The price would stay the same
d)
None of the Above
14.
Which of the following is characterized as ‘the point where the quantity of a good supplied is the same as the quantity demanded of that good’?
a)
The S/D Similarity
b)
The Equilibrium Price
c)
Price-Fixing
d)
Price Adjustment Point
15.
Which of the following market structures is characterized by 1) a large number of buyers and sellers who exchange identical products, 2) the number of sellers is so large that no single seller is large enough to affect the price of their goods, and 3) the market is generally easy to enter or leave?
a)
Perfect Competition
b)
Monopolistic Competition
c)
Oligopoly
d)
Monopoly
16.
Which of the following reasons best suggests why Oligopolies tend to happen in Aircraft and Automobile manufacturing industries?
a)
Laws state that only a certain amount of manufacturers are allowed
b)
House prices in Detroit are too low for more people to move there
c)
Entering those industries is very expensive and requires engineering expertise
d)
New companies must pay a fee to enter into those industries
17.
Why does the US Government sometimes give subsidies to farmers to get them to not grow crops?
a)
To keep farmers from leaving the market
b)
To keep prices of farm goods stable
c)
To make sure not too much food is grown, which would create a surplus
d)
All of the Above
18.
How are an Oligopoly and a Monopoly different?
a)
Monopoly: only 1 business in a market; Oligopoly: only a few
b)
Oligopolies are only owned by the government
c)
Monopolies are only owned by the government
d)
Monopoly: few businesses in a market; Oligopoly: only 1
19.
VOCABULARY: Government payments to encourage or protect a certain type of economic activity.
a)
Subsidy
b)
Supply
c)
Price Ceiling
d)
Minimum Wage
20.
Why are some Monopolies allowed to exist in our society?
a)
Geography: it may be the only business in a given area
b)
Government: only the government provides certain services
c)
Utilities: sometimes only 1 company owns the utilities in an area
d)
All of the Above
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