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WorksheetsMicroeconomics- FINAL
Total questions: 55
Worksheet time: 30mins
Refers to the used of goods and services.
Consumption
Production
Exchange
Injection
Refers to the transformation of resources like land, labor, capital and entrepreneur into goods and services.
Consumption
Production
Exchange
Injection
Goods include all tangible items, except:
Furniture
House
Machines
Transportation
The following choices below are basic needs, except:
Food
Shelter
Branded Clothing
Water
Refer to the study of the economic behaviour of individual components like industries, firms, and households.
Macroeconomics
Consumer Behaviour
Microeconomics
Positive Economics
Refers to all plots of ground and other natural resources used in the production of goods and services.
Land
Labor
Entrepreneurial Ability
Capital
It is the main reason why there is a study of microeconomics.
Resources
Scarcity
Household
Profit
Among them are famous economist, except:
Karl Marx
Adam Smith
George Washington
John Maynard Keynes
The following are the factors of production, except:
Land
Labor
Fish Pond
Capital
A major player in the economics whose main function is to consume goods and services
Household
Business Sector
Government
Employee
Refers to the condition that all resources are available only in limited supply.
Shortage
Surplus
Equilibrium
Scarcity
It is a kind of commodity which refers to tangible object (e.g. cars, clothes, shoes, book and many more).
Production
Services
Consumption
Goods
It is the price, quantity and total price of each consumption possibility and the grand total for the entire shopping list.
Scarcity
Supply
Demand
Budget
Refers to all facilities and other technological resources used in the production of goods and services.
Land
Labor
Entrepreneurial Ability
Capital
This variable in the market refer to anything that provides satisfaction to the needs, wants and desires of the consumer.
Goods
Services
Taste
Preference
This refers to any intangible economic activities that contribute directly or indirectly to the satisfaction of human wants.
Goods
Services
Taste
Preference
This variable in the market refer to anything that provides satisfaction to the needs, wants and desires of the consumer.
Goods
Services
Taste
Preference
This refers to any intangible economic activities that contribute directly or indirectly to the satisfaction of human wants.
Goods
Services
Taste
Preference
Which type of goods refers to anything that yields satisfaction directly to any consumer.
Consumer Goods
Essential Goods
Luxury Goods
Necessity Goods
These are goods that satisfy the basic human needs
Consumer Goods
Essential Goods
Luxury Goods
None of the above
What do you call those goods which man may do without, but brings comfort and well-being to him?
Consumer Goods
Essential Goods
Luxury Goods
Necessity Goods
Which of the following identifies the basic priorities of every consumer?
Bloom's Taxonomy
Maslow's Hierarchy of Needs
Social Stratification
Division of Labor
Which of the following states that as a consumer gets more satisfaction in the long-run, he experiences a decline in his satisfaction for goods and services?
Law of Supply and Demand
Law of Diminishing Marginal Utility
Ceteris Paribus
Maslow's Hierarchy of Needs
What do you call the measure involving the use and disposal of products as well as the study of how they are purchased?
Consumer behavior
Consumer goods
Consumer surplus
None of the above
Which of the following is/are determined by age, income, education, gender, occupation, customs, traditions as well as culture?
Essential and/or Necessity Goods
Taste & Preferences
Marginal Utility
Total Utility
What do you call the line that shows combinations of goods among which a consumer is indifferent?
Indifference Curve
Marginal Rate of Distribution
Consumption-Possibility Line
Engel Curves
Which of the following refers to the slope of the curve and measures the rate at which the consumer would be willing to give up one good for the other while maintaining the same level of utility?
Indifference Curve
Marginal Rate of Substitution
Consumption-Possibility Line
Engel Curves
Which of the following shows the various combinations of two products that can be purchased by the consumer with his income, given the prices of the products?
Indifference Curve
Marginal rate of substitution
Consumption-Possibility Line
Engel Curves
Which of the following indicates the combination of the two goods that can be purchased given the consumer's income and prices of the two goods?
Budget Constraint
Budget Line
Change in Consumer Income
Indifference Curve
Self interest of the consumers lies in the maximization of
Profit
Sales
Satisfaction
Wealth
Which point on the curve is an efficient use of resources?
F
D
E
A
Monopolistic competition is a type of
price discrimination
market structure
advertising strategy
oligopoly
An equilibrium price will NOT change unless?
either demand & supply change (or both)
both demand & supply change
only demand changes
only supply changes
A good that is used in place of another good to meet the same need is called
complementary good.
capital good.
substitute good.
consumer good.
Demand is defined as consumers' _____ and _____ to consume a good.
Ability; need
Willingness; ability
Willingness; need
Want; need
Which of the following is a characteristic of a perfectly competitive market?
Firms are price setters.
There are few sellers in the market.
Firms can exit and enter the market freely.
All of the above are correct.
The monopolist’s profit-maximizing quantity of output is where
average cost equals marginal revenue.
marginal cost equals marginal revenue.
price equals marginal revenue.
All of the above are correct.
Elasticity of demand or supply is consider elastic if the answer is?
=1
=0
<1
>1
Elasticity is consider as inelastic if the answer is?
=1
=0
<1
>1
A product whose demand falls when income rises, and vice versa, is called ?
Normal goods
Inferior goods
What is the difference between perfect competition and monopolistic competition?
Perfect competition has no barriers to entry, while monopolistic competition does.
In perfect competition, firms produce identical goods, while in monopolistic competition, firms produce slightly different goods.
Perfect competition has barriers to entry while monopolistic competition does not
The break–even point (BEP) is obtained when TR>TC
True
False
Cartel is a group of firms that collude to produce the monopoly output and sell at the monopoly price.
True
False
There is Collusion when firms act together to reduce output and keep prices high.
True
False
What is fiscal policy?
The government's ability to regulate interest rates
The government's ability to control inflation
The government's ability to raise taxes and spend money
The government's ability to set monetary policy
What is the main reason why Americans have been reluctant to raise taxes?
To encourage economic growth
To reduce government spending
To stimulate consumer spending
To adhere to supply side economics
What is the primary reason why Social Security and Medicare spending is unlikely to go down?
Aging population
Decrease in demand
Political support
Budget constraints
What is the purpose of Monetary Policy?
contribute to economic growth and stability
Functions like Fiscal Policy
keep rich people from getting too rich
give Congress and the political parties more control of the economy
What is the goal of contractionary fiscal policy?
To counteract inflation
To decrease taxes
To increase government spending
To deal with unemployment
What is the primary strategy of monetary policy?
Regulating the supply of money
Increasing government spending
Selling government bonds
Taxing and spending decisions
They spend more than they earn, reducing their accumulated savings or going deeper into debt.
middle class
poor people
rich people
none of the above
If a change in income appears permanent such as being promoted to a secure and high paying job, __________________.
then people are likely to consume less.
then people are likely to save more.
then people are likely to consume more.
then people are likely to save less.
