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Microeconomics

Total questions: 7

Worksheet time: 4mins

Name
Class
Date
1.

Market failure is the inability of

a)

some unregulated markets to allocate resources efficiently

b)

a market to establish an equilibrium price

c)

buyers to place a value on the good or service

d)

buyers to interact harmoniously with sellers in the market

2.

A firm that is threatened by the potential entry of competitors into a market builds excess production capacity. This is an example of

a)

a prisoners’ dilemma.

b)

collusion.

c)

. a credible threat.

d)

tit-for-tat.

3.
The graph represents: Demand or Supply?
a)
Demand
b)
Supply
4.
A necessity is something we need to live. Which answer describes a necessity?
a)
Food
b)
School
5.

Which point on the curve is an efficient use of resources?

a)

F

b)

D

c)

E

d)

A

6.

An equilibrium price will NOT change unless?

a)

either demand & supply change (or both)

b)

both demand & supply change

c)

only demand changes

d)

only supply changes

7.

Scarcity is when

a)

Unlimited wants is met with limited resources

b)

Forcing to pick some choices and reject the rest

c)

Choosing one alternative means giving up another

d)

All of them