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Microeconomics
Microeconomics
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1
Jorge & Fred have a product to sell. They decide to share the risks & profits by forming a
entrepreneurship.
sole proprietorship.
corporation.
partnership.
2
The demand for Twinkiedoodles in the months of June&Dec. The demand curve has moved to the right on the graph.This shows
buyers & sellers cannot agree on a price
the price for Twinkie-Doodles went down
the demand for Twinkie-Doodles has increased
the supply of Twinkie-Doodles has decreased
3
In a business organization, the splitting of management and ownership into two distinct functions is an example of a(n)
corporation.
partnership.
entrepreneur.
arbitage.
4
A price set below the current market price is a characteristic of a
equilibrium price.
regular price.
price ceiling.
price floor.
5
In the graph, the equilibrium price is approximately
$6.00
$1.00
$3.00
$5.00
6
To have demand, what must you have
a basic need and a constant supply of the item
a desire for the item.
the ability to pay for the item.
the desire and the ability to pay for the item.
7
Which BEST explains the relationship shown on the graph?
Fewer people will buy a product when its price increases.
The price of a product has no effect on consumer demand.
A product becomes scarcer as it price decreases.
A product costs more when many people want to purchase it.
8
Which market(s) has no competition
monopoly
monopolistic competition
perfect competition
oligopoly
9
Which type of business organization has the advantage of specialization, but the disadvantage of unlimited liability?
S-Corporation
partnership
corporation
oligopoly
10
A decrease in the price of a particular product will result in
a decrease in the demand for that product
an increase in the quantity supplied of that product
a shift in the production possibilities frontier
an increase in the quantity demanded of that product
11
What is Mrs. Dillon's Daughters Name?
Stephanie
Priscilla
Rebecca
Jennifer
12
The graph shows a demand curve. What can be said about the demand line moving to the right?
This indicates a reduced supply
Demand has decreased
Demand has increased
An equilbrium price has been determined
13
Supply is the total amount of a ______________ that is available to consumers.
good or service
service or industry
good or device
product or warranty
14
Assuming that the graph follows the normal laws of economics, the line represents
supply
production possibilities
demand
equilibrium price
15
In which type of business organization do the owners have least input and decision-making on the day to day operations?
Monopoly
Sole Proprietorship
Partnership
Corporation
16
Did you do your study Guide so you are ready for your test?
No. I dont want a good grade
Yes. I did most of it
Will be doing it tonight
ofcourse because I choose to use my time wisely
17
In the graph, what happened to the equilbrium price when the supply curve moved from S1 to S2?
It did not change
The equilibrium price went down
The equilibrium price went up
It indicated a decrease in demand
18
What is the relationship between quantity supplied and price?
They are not related.
They are directly related.
They are inversely related.
They are related through demand.
19
Which factor might cause an increase in the suppply of a product?
the introduction of new technology
an increase in the cost of raw materials
a decrease in productivity
fewer sellers in the marketplace
20
What conclusion can be made about the U.S. economy by examining this chart?
People need to buy more things to help the economy.
All aspects of the economy are related.
Consumer spending has little-to-no economic impact.
The government plays the most important economic role.
21
Money that individuals receive from businesses return to businesses in
the product markets.
the purchase of land.
the payment for resources.
the factor markets.
22
According to this diagram showing the circular flow of goods & resources where do individuals spend the income they earn
in individuals households
in the capital market
in the product market
in the factor market
23
Which of these is the best economic definition of "pure competition"?
the market is not dominated by either buyers or sellers
the market is dominated by a few buyers
the market is dominated by two or more sellers
the market is dominated by one seller
24
Mr. Simpson is liable for all the debts of his company. Mr. Simpson has which type of business organization?
sole proprietorship
monopoly
conglomerate
corporation
25
Supply is the total amount of a good or service that is available to ______.
purchase
distribute
consumers
redistribute
26
Why is there no competition in a monopoly?
There are no close substitutes.
The government forbids competition.
Prices are set by the government.
There are too many substitutes.
27
One reason that government regulation of natural monopolies is essential is
to allow more customer input into methods of production.
to ensure that competition continues to flourish.
to create more opportunities for corporate investment.
to prevent the monopoly from raising prices uncontrollably.
28
An unincorporated business owned by a single person, which may or may not have employees, is an example of a(n)
corporation.
sole proprietorship.
entrepreneurship.
partnership.
29
What is the name of the point at which supply and demand intersect?
scarcity
equilibrium
plateau
profit margin
30
How do individuals contribute to the circular flow of economic activity?
Businesses purchase productive resources in product markets.
Individuals provide labor for factor markets&buy goods in product markets.
Individuals buy productive resources & provide labor for product market
Businesses buy goods and services from individuals.
31
While demand is based on consumer purchases, supply is MOST LIKELY based on
the willingness of producers to supply a product
consumer confidence in a complementary product
producers offering a wide range of prices
the willingness to consumers to purchase a product
32
The Statement "the quantity demanded of a product varies inversely with its price" is a definition of
Laissez-faire
the law of competition
the invisible hand
the law of demand
33
The Law of Supply states that
quantity supplied of product will increase when price of product increases
when the supply of a product decreases, the price of the product falls
the supply of a product is not affected by its price
when the supply of a product increases, the price of the product rises
34
The diagram shows the circular flow of goods & resources. What is the primary purpose of this chart?
It indicates the changing tastes in the product market
It shows the relationship between supply & demand
It shows the need for government intervention in any economic system
It shows how households & businesses interact in a market economy
