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Microeconomics Review
Microeconomics Review
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Microeconomics Unit Review
Flashcards
30 cards
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Practice quiz
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Host live
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Questions
30
Answers
1
Demand includes which of the following
Desire to buy a product
All three
Ability to buy a product
Willingness to buy a product
2
How are prices determined in competitive markets?
By the consumer
By forces of supply and demand
By the largest corporation
By the government
3
The Law of Demand states that quantity demanded varies _______ with price.
Directly
Inversely
4
The philosophy of laissez faire originated with?
Adam Smith
Warren Buffett
Alan Greenspan
John Maynard Keynes
5
What would cause a supply curve to shift to the left?
The cost of inputs is lowered
A new technology is found
Future prices are expected to drop
A new tax is passed
6
Which of the following is an example of a variable cost?
Labor
All of the above
Electricity
Raw materials
7
Which of the following is a problem with being the first to innovate?
Copying and imitation
Fast-second
Patents
8
How might advertising affect demand?
People willing to buy more at each and every price
Advertising doesn't affect consumers
People willing to buy less at each and every price
9
The higher the price, the more a seller is willing to bring to market.
True
False
10
The demand curve is the graphical representation of
The demand listing
The demand schedule
The demand table
The demand numbers
11
A demand schedule shows
What people will buy at all prices
What people will sell at all prices
What people will destroy at all prices
What people will make at all prices
12
Watches and coffee
Unrelated goods
Substitutes
Compliments
13
Dr. Pepper and Mr. Pibb
Substitutes
Compliments
Unrelated goods
14
If price goes up, and the total revenue increases, then the good is
Unit Elastic
Inelastic
Elastic
15
A new tax has the same effect on supply as
Reduction of the number of sellers
An increase in the cost of inputs
Introduction of new technology
An increase in subsidies
16
The Law of Supply states that quantity supplied varies ______ with price.
Inversely
Directly
17
An item which is specially priced below cost to attract customers.
Ration
Break-even product
Equilibrium
Loss leader
18
The cost that a business incurs even if output is zero
Fixed cost
Variable cost
Marginal cost
19
Profit is maximized when marginal cost is _____ marginal revenue.
Greater than
Equal to
Less than
20
Total revenue is calculated by
Adding quantity and price
Dividing quantity by price
Counting profit
Multiplying quantity by price
21
If the elasticity of demand > 1, the product is
Unit Elastic
Inelastic
Elastic
22
Elasticity of demand is calculated by dividing % change in _______ by % change in ________.
Price, quantity demanded
Quantity demanded, price
23
During discount sales, which is likely to be true?
Suppliers are willing to bring more to market
Sales don't affect consumer behavior
Consumers are willing to buy less
Supplies are limited
24
A change in what would cause a change in quantity demanded?
Change in advertising
Change in season
Change in consumer tastes
Change in price
25
PlayStation and Madden '19
Unrelated goods
Substitutes
Compliments
26
A shortage occurs when _______ outpaces ________.
Supply, demand
Demand, supply
27
For resources to be allocated efficiently, information about market conditions is necessary.
True
False
28
New companies that focus on creating and introducing a new product.
Innovators
Start-ups
Inventors
Entrepreneurs
29
Utility and usefulness are synonymous terms.
False
True
30
Pure competition is a theoretical situation.
True
False
