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Microeconomics Quiz 1 Review

Total questions: 34

Worksheet time: 28mins

Name
Class
Date
1.

Which of the following Market structures has the most sellers?

a)

Perfect Competition

b)

Monopolistic Competition

c)

Oligopoly

d)

Monopoly

2.

If a town has only one gas station then the market for gas in that town is in which market structure?

a)

Perfect Competition

b)

Monopolistic Competition

c)

Oligopoly

d)

Monopoly

3.

Which of these market structures has the least control over price in the marketplace?

a)

Perfect Competition

b)

Monopolistic Competition

c)

Oligopoly

d)

Monopoly

4.

5 cell phone makers control about 85% of the market for cell phones so they are in what market structure:

a)

Perfect Competition

b)

Monopolistic Competition

c)

Oligopoly

d)

Monopoly

5.

A ton of companies make clothing but some brands are able to charge more because of perceived status or quality. This puts them in which market structure?

a)

Perfect Competition

b)

Monopolistic Competition

c)

Oligopoly

d)

Monopoly

6.

Which of the following is a very difficult (but not impossible) market structure to get into?

a)

Perfect Competition

b)

Monopolistic Competition

c)

Oligopoly

d)

Monopoly

7.

In this market structure there is little of no difference between the product no matter what company produces it.

a)

Perfect Competition

b)

Monopolistic Competition

c)

Oligopoly

d)

Monopoly

8.

Which market structure has the least competition in the marketplace?

a)

Perfect Competition

b)

Monopolistic Competition

c)

Oligopoly

d)

Monopoly

9.

When a market has more competition between firms in the market what will happen to price for the product in that market?

a)

It will rise

b)

It will fall

c)

stays the same

d)

Unknowable

10.

Rank the market structures from MOST competitive (left side) to LEAST competitive (right side).

a)

Perfect Competition

b)

Monopolistic Competition

c)

Oligopoly

d)

Monopoly

1)
2)
3)
4)
11.

Rank the market structures from the structure that has the MOST price control (left side) to LEAST price control (right side).

a)

Monopoly

b)

Oligopoly

c)

Monopolistic Competition

d)

Perfect Competition

1)
2)
3)
4)
12.
Packaging milk into smaller containers to meet the demand of people who live alone is an example of
a)
form utility
b)
possession utility
c)
time utility
d)
place utility
13.

A new surf shop opens in the middle of Brooklyn, New York. This shop lacks...

a)

Time Utlity

b)

Place Utility

c)

Information Utility

d)

Possession Utility

14.

A new vending machine in school begins offering Apple Pay along with their standard cash and debit card pay options. This is an example of....

a)

Time Utility

b)

Information Utility

c)

Form Utility

d)

Possession Utility

15.

Coke Zero updates its product label to communicate its sugar free features. This is an example of...

a)

Place Utility

b)

Information Utility

c)

Form Utility

d)

Possession Utility

16.

Apple's latest product took shock resistant glass to create a shatter proof screen. This is an example of...

a)

Form Utility

b)

Information Utility

c)

Place Utility

d)

Possession Utility

17.

A school begins offering tutoring hours to meet the needs of their working students who are seeking tutoring. This is example of...

a)

Place Utility

b)

Information Utility

c)

Time Utility

d)

Form Utility

18.

Which is an example of form utility?

a)

A business changes the shape of a product

b)

A business installs a paypal system

c)

A business adds a drive thru

d)

A business offers free delivery

19.

Which is an example of possession utility?

a)

A clothing store manager creates an Instagram ad

b)

A glassmaker produces a greater supply as Christmas approaches

c)

A salesman is unable to sell a new car to a customer who showed great interest

d)

A giant retailer extends the hours it's open during the summer months

20.

Which is an example of place utility?

a)

Adequate stock to meet the increased demand certain times of the year

b)

Creating a payment plan to assist customers who want to make a purchase

c)

A television commercial during the 6:00p.m. local news show to reach an older demographic

d)

Shopping malls and shopping centers

21.

Which of the following helps to create information utility?

a)

Television commercial

b)

An email about a department meeting

c)

Sugar in cookies

d)

Mannequin display

22.

Which statement describes the law of demand?

a)

As prices rise, quantity demanded decreases

b)

As prices rise, demand decreases.

c)

As prices fall, quantity demanded decreases.

d)

As prices fall, demand decreases.

23.

Which is an example of the Law of Demand at work?

a)

The price of the pizza goes up when the price of cheese goes up.

b)

Demand for pizza goes down when tacos become more popular

c)

The price of pizza falls when the demand for pizza falls

d)

Demand for pizza rises when the price of pizza falls

24.

The market equilibrium price is the price at which

a)

surpluses depress the number of goods supplied

b)

shortages and surpluses will have no effect on the market

c)

the government will not intervene in the market

d)

the quantity demanded is the same as the quantity supplied

25.

When there is a shortage the price will usually?

a)

rise

b)

fall

c)

remain the same

d)

equilibrium

26.

Much of the tea in the U.K. is imported from India. If wages for Indian tea workers rose, thus increasing input costs, how would this effect supply of tea in the U.K.?

a)

Supply would increase

b)

Supply would Decrease

c)

Supply would stay the same

d)

India is not a real country

27.

If a wave of Peruvian immigrants migrated to south Florida, how might this affect the demand for Peruvian goods in the region?

a)

Demand would increase

b)

Demand would decrease

c)

Demand would be unchanged

d)

Quantity Demanded would increase

28.

In Jim's household, everyone consumes and enjoys milk. Recently, the price on milk increased by two dollars, but despite this increase, Jim and his family still continue to buy the same amount of milk, for they consider it a necessity. Jim's family's demand for milk would be considered fairly

a)

elastic

b)

inelastic

29.

When price increases, quantity supplied

a)

increases

b)

decreases

30.

This term means the good things or pros of a business decision.

a)

costs

b)

outcome

c)

benefits

d)

intangibles

31.

This term means the expenses or the cons to making a business decision.

a)

benefit

b)

cost

c)

payback period

d)

analysis

32.

Essentially, what is a cost-benefit analysis?

a)

a list of all the employees you want to hire

b)

a pros-cons list

c)

a christmas wishlist

d)

a list of all the projects you want to do

33.
You sign up to drive for Uber.  This requires you to spend $20 more per month on insurance and $80 more per month on gas.  You average $700 a week in fares.  Your prior salary was $30,000 a year.  How much more money will you make with Uber in one year (52 weeks)?
a)
$5,200
b)
$6,400
c)
You will lose money
d)
$4,000
34.
A lawnmower cost $400 and will last you for 8 years.  You will need to spend $20 a month on gas and $40 a year in maintenance.  What is the yearly cost associated with this purchase?
a)
$330
b)
$490
c)
$460
d)
$770