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Microeconomics Test #1 Flashcards | StudBud

Explore/Microeconomics Test #1

Microeconomics Test #1

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#micro #hubbardobrien #atkinson

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Questions 10

Answers

1
What is the intersection of a supply and demand curve called?
unattainable
deadweight loss
market equilibrium
technically efficient
2
What do we call the highest valued alternative given up to engage in an activity?
economic cost
opportunity cost
marginal cost
comparative advantage
3
What is the extra cost associated with taking on an activity?
opportunity cost
production expense
marginal cost
forgone cost
4
Which of the following is a positive economic statement?
Economic growth should be at least 5% per year.
Illegal immigrants should not be allowed to work in the US.
The gov't must increase investment in wind energy.
We face unlimited wants but limited resources.
5
What do we call the sum of consumer surplus and producer surplus?
economic surplus
economic summary
economic benefit
economic growth
6
What is the reduction in economic surplus resulting from a market not in equilibrium?
market equilibrium
consumer surplus
deadweight loss
producer surplus
7
Why must choices be made in economics?
scarcity
greed
unemployment
unlimited resources
8
Which of the following is an assumption made by economists?
Optimal choices are made with cost/benefit analysis.
People are rational and respond to incentives.
People make all choices based on the amount of benefit.
People will respond to incentives when they are significant.
9
Why do most PPFs have a bowed shape?
decreasing opportunity costs as more of a good is produced.
constant opportunity costs as more of a good is produced.
increasing opportunity costs as more of a good is produced.
Due to inefficient production.
10
Which event will cause a movement along the demand curve?
Buy one, get one free sale.
A change in consumer tastes.
The US economy goes into a recession.
A sale on a substitute good.