Microeconomics Review

Question 1

People smoking cigarettes in public creates ____.

Accepted Answer

a negative externality of consumption

Question 2

The graph shows that because of the wind turbine firm's increased expenditure, its output ____.

Accepted Answer

increases

Question 3

When firms purposely restrict output to increase profits, there is ____.

Accepted Answer

imperfect competition

Question 4

Indirect taxes are used to limit consumption of ____ goods, this also increases gov't ____.

Accepted Answer

demerit; revenue

Question 5

With the controls, the range that the prices of coffee would now fall into is shown on ____.

Accepted Answer

B

Question 6

As the price of donuts increase, which graph would represent an unwanted surplus?

Accepted Answer

graph 2

Question 7

Which graph shows the elasticity of airline tickets?

Accepted Answer

Graph 4

Question 8

To ensure their supply in an economy, governments will ____ products they think are important.

Accepted Answer

subsidize

Question 9

Which graph represents the actions of a steel monopoly engaging in imperfect competition?

Accepted Answer

graph 1

Question 10

Which of the following goods would receive an indirect tax?

Accepted Answer

soda

Question 11

All of the following are reasonable opportunity costs for a camera except?

Accepted Answer

money

Question 12

For example, the government may implement a ____ to control the volatile prices of ____.

Accepted Answer

buffer stock scheme; coffee beans

Question 13

As price rises, the more elastic demand is, the more hurtful the change is to ____.

Accepted Answer

producers

Question 14

A lack of flood barriers will have what impact on the economy (shown in the graph)?

Accepted Answer

D (lower MSB)

Question 15

Increases in price will often disrupt equilibrium and cause ____.

Accepted Answer

surpluses

Question 16

Which of the following qualifies as imperfect competition?

Accepted Answer

A steel company buying up and controlling the industry

Question 17

Public goods are beneficial to society, but won't be supplied because they are ____ and ____.

Accepted Answer

non-excludable; non-rivalrous

Question 18

Decreases in price will also often disrupt equilibrium and cause ____.

Accepted Answer

shortages

Question 19

In the airline tickets markets, when price increases ____, quantity demanded decreases ____.

Accepted Answer

minimally; drastically

Question 20

To ensure fair prices and reasonable supplies, governments will implement ____.

Accepted Answer

price controls

Question 21

Opportunity cost comes from ____ which is created by the problem of ____.

Accepted Answer

economic choice; scarcity

Question 22

In the inelastic gasoline market, when price changes the quantity demanded will change ____.

Accepted Answer

minimally

Question 23

As the price of a product falls its demand becomes more ____.

Accepted Answer

elastic

Question 24

If prices of cereal decreases, quantity demanded ____ and quantity supplied ____.

Accepted Answer

increases; decreases

Question 25

As shown in the graph, a price increase in soda will cause ____.

Accepted Answer

both

Question 26

Because of this concept, when cigarette prices are high, their supply is ____.

Accepted Answer

inelastic

Question 27

Which graph shows the inelasticity of gasoline?

Accepted Answer

Graph 3

Question 28

In deciding opportunity costs of cameras, which point shows the greatest loss of phones?

Accepted Answer

Point C

Question 29

Flood barriers qualify as a public good because if they're provided ____.

Accepted Answer

All of the above

Question 30

Externalities are effects of consumption and production on ____.

Accepted Answer

third parties

Question 31

If prices of donuts increase the quantity demanded ____ and quantity supplied ____.

Accepted Answer

decreases; increases

Question 32

As price rises, the more inelastic demand is, the more hurtful the change is to ____.

Accepted Answer

consumers

Question 33

As the price of cereal decreases, which graph would represent the unwanted shortage?

Accepted Answer

graph 2

Question 34

Because of their importance and general undersupply, a gov't may subsidize ____.

Accepted Answer

wind turbines

Question 35

Which graph represents the negative externality of consumption created by cigarettes?

Accepted Answer

graph 3

Microeconomics Review

Questions 35

Microeconomics Review

Questions 35