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WorksheetsMICROECONOMICS QUIZ
Total questions: 60
Worksheet time: 2hrs 0mins
What is the definition of a want?
the good things about a choice
the amount of item that a store has in stock
what you must pay for an item
something you would like to have
What is the definition of a need?
something you would like to have
something you have to have to live
when the item that you want is hard to find
the amount of people who want to purchase an item
What is the definition of scarcity?
the good things about a choice
what you must pay for an item
when the item you want is hard to find
an extra reason to purchase something
What is the definition of supply?
the amount of people who want to purchase an item
the good things about a choice
something you would like to have
the amount of an item a store has in stock
Billy was trying to make a choice between a new game for his Wii or a new skateboard. He decided to use his money to buy a new game for his Wii. He had to give up the skateboard for the Wii game. The skateboard was his
scarcity
benefit
opportunity cost
What is the definition of demand?
the amount of people who want to purchase and item
the amount of an item a store has in stock
an extra reason to purchase something
the good things about a choice
Consumers
use and pay for goods and services
make or grow goods and sell services
want to grow goods and sell services
are people who live in neighborhoods
What is the definition of price?
something you have to have to live
an extra reason to buy something
something you would like to have
what you must pay for an item
Producers
use and pay for goods and services
make or grow goods and sell services
want to grow goods and sell services
are people who live in a neighborhood
According to the law of diminishing marginal utility, which of the following is true?
Consuming more of a good will always make a consumer worse off
Total satisfaction from a good increases at an increasing rate as more of the good is consumed
The total satisfaction from consuming more of a good always decreases as consumption increases
The satisfaction of consuming additional units of a good will decrease as consumption of the good increases
When marginal utility decreases, total utility will also decrease
What is the difference between total utility and marginal utility?
Total utility is the dollar value of all consumption; marginal utility is the dollar value of one more unit of consumption
Total utility is consumers’ satisfaction of the last unit of consumption; marginal utility is consumers’ satisfaction from all consumption.
Total utility is the value to sellers of all production; marginal utility is the value to sellers of one more unit of production
Total utility is the value to sellers of all production; marginal utility is the value to sellers of all production less the costs of production.
Total utility is consumers’ satisfaction with all consumption; marginal utility is consumers’ satisfaction from one more unit of consumption.
This graph shows a consumer's total utility from eating hamburgers in a single meal.
Which of the following characteristics of the TU function is explained by the law of diminishing marginal utility?
the fact that the TU function slopes upward for some of the total utility curve
the fact that TU function's slope starts steep but decreases until the 3rd hamburger and then becomes downward sloping
the fact that the TU function starts at 0
the fact that the TU function is always positive
the fact that the TU depends on the quantity demanded
Wheat has seen a decrease in demand of 5%, while the price has increased 7%
1.4 inelastic
1.4 elastic
.71 inelastic
.71 elastic
Which of the following is an example of inelastic demand?
Jason wants the most expensive cellphone. He decides to get a cheaper model.
Priya wants to go to the season-opening game. Tickets to another game cost less, but she still buys tickets for the opener.
Tianna wants to try out a new, expensive restaurant. She goes to another restaurant whose food is excellent and costs less.
Shawn wants to buy a house in one neighborhood. But after searching, he decides to buy a house elsewhere instead.
_____________ is a function of inputs.
Raw Materials
Output
Production Function
Labour
________ an addition to the total production by the employment of an extra unit of a factor.
Average Product
Total Product
Marginal Product
Output
a production function:
Gives the minimum level of output that can be produced from a combination of inputs
Gives the different levels of output that can be produced from a combination of inputs
Gives the maximum level of output that can be produced from a combination of inputs
All of the above
The shape of Marginal cost is
U shaped
S shaped
The MC curve cuts AC at its
highest point
minimum point
Salary given to permanent staff is an example of which kind of cost
fixed cost
variable cost
The per unit price at which goods or services are offered by a business to their customers is called
Average revenue
Marginal revenue
Variable cost
Total revenue
When MR is constant, TR ............
Rises at a falling rate
Rises at a constant rate
Rises at an increasing rate
Remains constant
TR curve starts from
Y axis
X axis
Origin
negative X axis
Average revenue can never be negative. (True/False)
False
True
A shift in a supply curve demonstrates
a change in quantity supplied
a change in quantity demanded
a change in supply
a change in demand
Movement along a supply curve demonstrates
a change in quantity supplied
a change in quantity demanded
a change in supply
a change in demand
Price elasticity of supply is the responsiveness of
demand to a change in price.
price to a change in supply.
quantity supplied to a change in price.
price to a change in supply.
Factory owner Susan has calculated that her PES is 3. This number means that,
if price were to rise by 2% Susan would supply 6% more products.
If price were to rise by 2% Susan would supply 3% more products.
the percentage change in price is three times the percentage change in quantity.
in the PES formula, the top number is smaller than the bottom number.
During recession price elasticity of supply will be
Elastic
Inelastic
Unitary elasticity
If the supply curve of a product is vertical, PES is equal to
0.
1.
-1.
infinity.
The law of variable proportions is said to exist when
there are only two variable factoras
there is a fixed factor and a variable factor
all factors are variable
When MP is zero
TP is maixmum
TP starts falling
AP becomes negative
TP is zero
Which stage represents the range of rational production decision?
Stage III
Stage I
Stage II
In the Law of variable proportion stage II is said to be in operation when
the total product is increasing at an falling rate
the total product is increasing at an increasing rate
the total product is increasing
the total product is increasing at an decreasing rate
Market is
place where buyers meet sellers
Mandi /bazar
Is a situation where optimum customers meet optimum sellers
online market
Perfect competitive market is
price taker
huge no. of buyer and huge no.f sellers
single seller and single buyer
marginal revenue is more than marginal cost
perfect market has
homogeneous product
heterogeneous goods
special goods
only industrial goods
_______________________ is a type of monopoly market .
Railways
postal service
Reserve bank of India
All the above
perfect mobility of resources possible
monopoly market
monopolistic market
perfect competitive market
oligopoly
there is absence of transportation cost in
monopolistic competitive market
monopsony
oligopsony
perfect competitive market
In which form of market AR=MR
Monopoly
Oligopoly
Perfect competition
Monopolistic competition
A situation in which the quantity supplied is greater than the quantity demanded is
a shortage
a surplus
a price floor
a price ceiling
Perfect competition is characterized by all the following EXCEPT:
A large number of buyers and sellers
Identical products
Sellers acting together to set prices
Easy entry into the market
