A 20% fall in the price of pizza causes 25% increase in their consumption, then consumers would

spend more their income on pizza

In 2007, the price of house in Perth increased & the quantity sold also increased. This implies

the demand for housing must have increased

In economics, the 'what' problem means

the types of goods and services produced

In terms of the PPF, an increase in the labour force would be best shown by

an outward shift of the frontier

Demand for a good is said to be inelastic if

quantity changes by a smaller proportion than price

Study of satisfying needs & wants with limited resources

All of the following will cause a shift in the demand curve for a good except

a change in the price of the good

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Mr Wallace Microeconomics Year 11

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Year 11 Microeconomics Quiz

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Questions 18

Answers

1
A 20% fall in the price of pizza causes 25% increase in their consumption, then consumers would
the same amount of their pizza income
more on pizza substitutes
spend less of their income on pizza
spend more their income on pizza
2
If the price of a product rises then, ceretis paribus
quantity demanded will rise
supply will increase
demand curve will shift to the left
quantity supplied will rise
3
In 2007, the price of house in Perth increased & the quantity sold also increased. This implies
supply of house must have increased
the demand for housing must have increased
the demand for housing is upward sloping
the law of demand does not work
4
An improvement in technology will
decrease consumer surplus
decrease producer surplus
increase consumer surplus
not affect consumer surplus
5
In economics, the 'what' problem means
the types of goods and services produced
quantity of resources available determines what is produced
price consumers are prepared to pay determines what is made
What resources will be used to produce the desired output
6
Assume apples & oranges are substitutes. If there is an increase in the supply of oranges then
shift the demand curve for oranges to the right
increase the price of apples
shift the demand curve for apples to the right
decrease the price of apples
7
The costs of going to a cricket game includes
all of the above
the time spent watching the game
the money spent on a ticket
the time spent waiting in line at the box office
8
If price increases by 10% & quantity demanded falls by 30%, then price elasticity of demand =
3.0
0.3
0.03
3.33
9
If price increase from $4 to $5 and quantity demand falls from 20 to 16 then price elasticity=
0.8
0.05
1.25
1
10
In terms of the PPF, an increase in the labour force would be best shown by
an inward shift of the frontier
movement from point inside the curve to a point on the curve
a movement along the frontier
an outward shift of the frontier
11
Tim pays $10 for a pizza but he was willing to pay $12. Tim's consumer surplus is
$10
$12
-$2
$2
12
The statement that a 'reduction in interest rates would be good for the economy" is an example
an economic hypothesis
a normative statement
a positive statement
a statement of fact
13
Which of the following pairs could be considered compliments
oranges and apples
coffee and tea
coke and pepsi
bread and butter
14
Demand for a good is said to be inelastic if
quantity changes by a bigger proportion than price
quantity changes by the same proportion as price
price changes by a smaller proportion than quantity
quantity changes by a smaller proportion than price
15
A Demand curve is a
marginal revenue curve
marginal welfare curve
marginal benefit curve
marginal cost curve
16
When a tax is placed on a good
increases producer surplus
increases government revenue
increases consumer surplus
increases total surplus
17
Define Economics
Study of using needs & wants with unlimited resources
Study of satisfying needs & wants with limited resources
Study of satisfying needs & wants with unlimited resources
Study of using needs & wants with limited resources
18
All of the following will cause a shift in the demand curve for a good except
a change in the price of a closely related good
a change in income
a change in preferences
a change in the price of the good

Mr Wallace Microeconomics Year 11 Flashcards | StudBud