As the price of a good or service increases...

the quantity demanded decreases; quantity supplied increases

What is A and B represented by?

factor market and product market

What is the meaning of price elasticity of supply?

how much quantity supplied changes because of a price change

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Microeconomics

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A quiz testing a student's knowledge on microeconomis.

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Questions 15

Answers

1
Which of the following happens when the price of a good increases?
quantity supply increases
demand increases
quantity demanded increases
supply increases
2
Which of the following does not cause a change in market demand?
Consumer tastes and preferences
Change in price of complementary goods
Change in number of consumers
Technology
3
As the price of a good or service increases...
the quantity demanded increases; quantity supplied decreases
the quantity demanded and the quantity supplied decrease
the quantity demanded decreases; quantity supplied increases
the quantity demanded and the quantity supplied increase
4
What is an example of pure competition?
car market
cell phone market
fast food market
selling fruits and vegetables
5
When quantity demanded and quantity supplied are equal, this is called ________.
neutral point
price index
market economy
market equilibrium
6
Who came up with the "invisible hand" theory based on self-interest?
Adam Smith
Karl Marx
Jean Baptiste Say
Milton Friedman
7
Which of the following is not a role of money?
Medium of Exchange
Unit of Account
Store of Value
Ability to Pay
8
Which of the following would a price floor create?
shortage
decrease in prices
market equilibrium
surplus
9
Which two things are compared on a demand graph?
price and quantity supplied
demand and quantity demanded
price and quantity demanded
quantity supplied and quantity demanded
10
Which of the following have no barriers to entry?
Pure Competition
Monopolistic Competition
Oligopoly
Monopoly
11
What is C and D represented by?
businesses and product market
factor market and product market
businesses and households
factor market and households
12
Which of the following is an example of a price ceiling?
Rent Control Laws
Minimum wage
Farm Products
13
What is A and B represented by?
businesses and product market
factor market and households
businesses and household
factor market and product market
14
Which one of these businesses is owned by stockholders?
Corporation
Entrepreneurship
Partnership
Sole Proprietorship
15
What is the meaning of price elasticity of supply?
how much quantity supplied changes because of a price change
how much demand changes because of a price change
how much quantity demanded changes because of a price change
how much supply changes because of a price change

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