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Microeconomics Review Flashcards | StudBud
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Microeconomics Review
Microeconomics Review
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Microeconomics review #microeconomics
Flashcards
25 cards
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Practice quiz
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Questions
25
Answers
1
Buyers help determine price in a market economy by
How they are taxed
How much they produce as households
How much they value the dollar over other currencies
How much they demand a product and are willing to spend
2
Where do individuals spend the money they earn?
Product Market
Super Market
Households
Factor Market
3
If Ed bought $800 in Verizon stock and then it went bankrupt, how much would he be liable for?
Unlimited liability, having to sell stuff to pay the debt
Limited liability, he will only lose the $800 he invested
Partial liability, he will use savings to pay company debt
Limited liability, he will be reimbursed the $800
4
What problem does a price ceiling below equilibrium create?
Minimum Wage
Shortage
Surplus
Profits
5
In the circular flow model, what do individuals SELL to businesses
Products
Revenue
Resources
Goods and Services
6
With demand staying the same, if the supply of hot dogs reduced, what will happen to the price?
It will increase
It will remain the same
One can not tell from the information provided
It will decrease
7
A market structure that features a unique product and total price control by the firm is a ???
Corporation
Monopolistic Competition
Sole Proprietorship
Monopoly
8
Moving from 6 dollars to 9 dollars would lead to a
Decrease in demand
Increase in demand
Increase in quantity demanded
Decrease in quantity demanded
9
What is shown in the graph below?
An increase in quantity supplied
An increase in supply
A decrease in demand
A decrease in supply
10
Interdependence and price wars between a few firms are characteristics of which market structure?
Monopolistic Competition
Perfect Competition
Monopoly
Oligopoly
11
One advantage of operating as a partnership would include???
Being able to raise capital through shares of stock
Greater power than a sole trader for decision making
Limited liability for all partners
Specialization of the partners in needed areas
12
A large number of independent buyers and sellers who exchange IDENTICAL products is known as
Monopolistic Competition
Monopoly
Perfect Competition
Oligopoly
13
Unlike perfect competition, monopolistic competition features ______.
Well informed buyers and sellers
Independent buyers and sellers
product differentiation
Freedom for buyers and sellers
14
The flow of goods and services from business to households primarily takes place in the???
intermediary good market
factor market
financial market
product market
15
Which of the following is considered a negative side effect of the minimum wage?
Failure to meet production
full employment
increased interest rate
Increased unemployment
16
If the price of cameras goes down, what will happen to the demand for camera lenses?
The information can not be known from the available info
It will decline
It will not be affected
It will increase
17
Amy opened a new business. She has unlimited liability but can make all the decisions. This is a
partnership
franchise
sole proprietorship
corporation
18
What would cause the following shift ( from D2 to D1) shown in the graph?
A new health report says yogurt makes you sick
Yogurt prices rise due to milk shortage
A new report says that yogurt keeps you healthly
Yogurt prices fall to milk surplus
19
Which is NOT required for a product to be in demand?
ability
willingness
scarcity
desire
20
The law of supply states that
the higher the price the more producers will supply
the lower the price the more producers will supply
the lower the price the more consumers will buy
the higher the price the more consumers will buy
21
What is the economic term that describes the situation where there is more supply than demand?
Bonus
Shortage
Scarcity
Surplus
22
Which sentence describes market conditions at equilibrium/market clearing price?
Demand is greater than supply
Supply and demand are equal
There is no supply or demand
Supply is greater than demand
23
What is the economic term that describes the situation where there is more demand than supply?
Excess
Shortage
Surplus
Equilibrium
24
What is the basic unit of study in microeconomics? (hint: think circular flow)
employment and unemployment figures
total consumer spending and saving
government taxes and spending
individual businesses and households
25
A good that is used in place of another good is?
Consumer good
Substitute good
Complementary good
Capital good
