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Microeconomics
Microeconomics
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Microeconomics Practice Guide
Flashcards
26 cards
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Practice quiz
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Questions
26
Answers
1
<p>This is known as the ...</p>
Production Possibilities Frontier
Circular Flow Diagram
Governmant Flow Chart
Organizational Chart
2
The _______ of any good/service is the amount that sellers are willing and able to sell.
law of supply
supply
law of demand
quantity supplied
3
An effective price ceiling,
Is below the market equilibrium
Is above the market equilibrium
Protects the producers' surplus
Distributes goods and services equitably
4
A good/service with many substitutes would be considered
abundant
complementary
inelastic
elastic
5
An implicit opportunity cost of attending college is
Fees
Tuition
Books
Living expenses
6
Shows the flow of products and money in aneconomy
Production possibilities
Business cyles
Circular Flow
Economic systems
7
A market structure where are many firms selling products that are similar but not identical
Perfect competition
monopolistic competition
monopoly
oligopoly
8
Your willingness to pay If your consumer surplus is $27 from a good for which you spent $45
$18
$27
$45
$72
9
When a market is in equilibrium,the ___ determines buyer and seller participation in the market
Supply
GDP
Demand
Price
10
At what point is this company allocating their resources inefficiently?
C
Y
B
X
11
Dave raises sheep. What will happen in the market for wool, a complement in production?
Increase supply
Decrease demand
Increase demand
Decrease supply
12
Consumer surplus when you pay $120 for a good for which you were willing to pay $210
$80
$90
$100
$330
13
A demand curve shift to the right will cause the equilibrium price to _________
decrease
none of the above
increase
remain the same
14
Consumer surplus equals the area above the price and under the supply curve
False
True
15
study of the economic decisions and actions of individual people, companies, etc
Macroeconomics
Microeconomics
Economics
Firms
16
The most fundamental economic problem is
How society allocates resources fairly
How choices are made to use limited resources
Income equity and disparity between rich and poor
How individuals maximize utility
17
The point where products A and B are inefficient
X
C
Y
B
18
Shape of Total Fixed Cost(TFC) Curve is
Horizontal
Verticle
None of the above
45 degree line
19
Which of the following does not characterize a P.C market?
The government gives a firm the exclusive right to a good
Goods offered by various sellers are mostly the same
Many buyers/sellers in the market
Firms can freely enter or exit the market
20
Which is true of the marginal factor cost for a firm hiring labor in a P.C labor market?
It is constant and equal to the market wage rate.
It is less than the market wage rate.
It is greater than the market wage rate.
It increases as the number of workers hired increases.
21
Which of the statements below is a positive microeconomic statement
The unemployment rate is too high
The minimum is $6.75
The minimum wage should be raised
Workers earning less than the minimum should be given raise
22
If an allocation of resources maximizes total surplus, we say that the allocation exhibits
equity
efficiency
opportunity cost
prices
23
Monopoly is a form of market where there is
A single firm controlling the market
Small number of buyer
large number of buyer
Any of the above
24
A profit-maximizing firm will shut down in the short run if
price is less than average total cost
marginal cost is greater than average total cost
price is less than average variable cost
marginal cost is equal to average total cost
25
<p>The next best option is the ...</p>
Scarcity
Opportunity Cost
Trade Off
Choice
26
The fairness of the distribution of well-being among the various buyers and sellers
prices
efficiemcy
equity
opportunity cost
