The market equilibrium, or market clearing price, is established when

quantity supplied is equal to quantity demanded

Which of the following are characteristics of an Oligopoly?

Few firms; hard to enter market

If demand is inelastic, what occurs when price changes?

a small change in quantity demanded

If supply is elastic, what happens?

A big change in quantity supplied occurs with a price change

Which of the following are characteristics of a monopoly?

one firm; complete control over price

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Microeconomics Unit 2 Quiz

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Based on Georgia Performance Standards for Microeconomics #microeconomics #ssemi1 #ssemi2 #ssemi3 #ssemi4

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Questions 32

Answers

1
If Zaxby's introduces a new milkshake that everyone loves, Demand will increase due to
Tastes and Preferences
An increase in Population
Price of Compliments
Price of Substitutes
2
An advancement in Technology will usually
decrease demand
increase supply
increase demand
decrease supply
3
Which of the following causes a shortage
a price ceiling
demand
supply
a price floor
4
If prices are higher
consumers will consume more
producers will produce less
producers will cry
producers will produce more
5
The market equilibrium, or market clearing price, is established when
quantity supplied is equal to quantity demanded
Supply is greater than Demand
quantity supplied is greater than quantity demanded
quantity demanded is greater than quantity supplied
6
In a Market Economy, what serves as a medium of exchange?
trade
banks
barter
money
7
Unlimited liabilty for one owner exists for which business organization?
a partnership
an Limited Liability Corporation
A corporation
sole proprietorship
8
If the Government increases taxes (or increases regulations)
supply will decrease
demand will decrease
supply will increase
demand will increase
9
To be a corporation
arguments must occur
bylaws must be established
risk must be split among all owners
One person makes all of the decisions
10
If the price of Wendy's increases, Demand for McDonald's will
increase
decrease
stay the same
shift to the left
11
When quantity demanded is greater than quantity supplied?
a shortage occurs
demand is greater
a surplus occurs
supply is greater
12
The benefits of a partnership are
One person keeps all profits
risk is divided among owners
Easy to raise money or capital
One person makes all of the decisions
13
Which of the following causes a surplus?
supply
a price floor
a price ceiling
demand
14
A Market is established when
quantity demanded is greater than quantity supplied
buyers and sellers meet
qunatity supplied is greater than quantity demanded
consumers outnumber producers
15
If the cost of labor increases
supply will decrease
demand will decrease
demand will increase
supply will increase
16
Which of the following are characteristics of an Oligopoly?
Few firms; hard to enter market
Many firms; some control over price
Few firms; complete control over price
Few firms; easy market entry
17
If demand is inelastic, what occurs when price changes?
a large change in quantity supplied
a small change in quantity supplied
a large change in quantity demanded
a small change in quantity demanded
18
If the price of a PS4 increases, demand for PS4 games will
decrease
increase
shift right
stay the same
19
If supply is elastic, what happens?
small change in quantity supplied occurs with a price change
a small change in quantity demanded occurs
large change in quantity demanded occurs
A big change in quantity supplied occurs with a price change
20
In the short run, supply is
inelastic
shifts right
elastic
doesn't change
21
If the number of Pizza restauraunts in town increases, the supply of Pizza will
increase
stay the same
shift left
decrease
22
Which of the following are characteristics of Monopolistic Competition?
few firms; identical products
few firms; similiar products
Many Firms; similiar products
many firms; identical products
23
Which of the following are characteristics of a monopoly?
one firm; some control over price
many firms; identical products
one firm; complete control over price
one firm; similiar products
24
What does a Household receive from a Firm in the Product Market?
Cash
Wages, Rent, and Dividends
Land, Labor, Capital
Goods and Services
25
When quantity supplied is greater than quantity demanded
people buy more
a surplus occurs
a shortage occurs
people buy less
26
If prices are lower
producers will cry
Consumers will cry
consumers will consume more
consumers will consume less
27
As prices decrease, people will buy more goods and services. This is
the law of supply
the law of demand
quantity supplied
quantity demanded
28
Price Ceilings and Price Floors are established by
producers
the government
consumers
the market
29
What does a Firm Receive from a Household in the Factor Market
Cash
Goods and Services
Land, Labor, Capital
Wages, Rent, and Dividends
30
Demand for which of the following goods would be inelastic:
an expensive purse
a smartphone
a cheeseburger from a fast food restauraunt
insulin for a diabetic
31
According to the Law of Supply, as price increases, quantity supplied
decreases
increase
stays the same
shifts to the right
32
If the population increases
supply will decrease
demand will decrease
supply will increase
demand will increase

Microeconomics Unit 2 Quiz Flashcards | StudBud