is not accounted for in the product's price

Productive efficiency is when...

Making more of one product means making less of another

Which is the best definition of Opportunity cost?

The next best alternative you gave up

Which example below fits a situation of "joint supply"

Oil refineries producing asphalt

Economies of Scale...

are a long-run concept, shows how average costs fall in the long-run

A complementary good...

has a negative Cross-price elasticity

The difference between a Giffen Good and a Veblen good is...

The sign of their Income elasticity of Demand

What is composite demand?

When a good's demand comes from many sources

Why does excess demand lead to price rises?

Excess demand produces scarcity, leading to rationing, Firms have an incentive to raise prices to produce profit

An example of the short-run is...

when I have to turn away consumers as I lackstaff today, when the number classrooms you can use is fixed

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Microeconomics Keyword Quiz

15 termsStudBud Administration194 plays

#keywords #micro #microeconomics #aqa #alevel #elasticities #externalities #supply #demand #definitions

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Questions 15

Answers

1
Which of these is NOT a factor payment?
Wages
Rent
Interest
Revenue
2
An externality...
must happen to someone not paying for the product
can occur to the person paying for the product
requires government intervention
is not accounted for in the product's price
3
Which answer best describes pure public goods?
Rival but non-excludable
non-rival and non-excludable
Provided by the government
Available for all
4
Which of these could NOT be a factor of production?
Money
Soap
Clothes
Pens
5
Productive efficiency is when...
Average costs are falling
Marginal returns are at their lowest.
Maximum total product is reached
Making more of one product means making less of another
6
Which is the best definition of Opportunity cost?
The next best alternative you gave up
The best alternatives you gave up
The next best alternative
The opportunity sacrificed when you made the decision
7
Diminishing Marginal Returns are when...
the marginal cost is rising
The Average cost curve has a positive gradient
always leads to inefficiencies
when total returns are falling
8
Which example below fits a situation of "joint supply"
A factory producing both sweaters and socks
Tennis rackets need tennis balls to be produced as well
Beer and wine serving the same market
Oil refineries producing asphalt
9
Economies of Scale...
can occur with fixed factors
are illustrated in the shape of the PPF curve
are a long-run concept
shows how average costs fall in the long-run
10
A complementary good...
is usually also a merit good
is essential for the consumption of another good
has a low price elasticity of demand
has a negative Cross-price elasticity
11
The difference between a Giffen Good and a Veblen good is...
The sign of their Price Elasticity of Demand
The sign of their Income elasticity of Demand
How much the products cost
Giffen goods are found in real-life
12
What is composite demand?
When a good is dependent on one other market for its demand
When a good's demand is independent of other markets
When a good's demand comes from many sources
When there is an intermediate stage in production
13
Why does excess demand lead to price rises?
Excess demand produces scarcity, leading to rationing
Firms coordinate to solve the market failure
Firms have an incentive to raise prices to produce profit
Consumers are more willing to pay the price and so offer it
14
Which of these is NOT true about Marginal Cost
It can be both curved and a straight line
It equals Marginal revenue at the profit maximising output
It's the cost of one more product made
It's always rising
15
An example of the short-run is...
what I can change in the next 2 weeks
when I have to turn away consumers as I lackstaff today
when the number classrooms you can use is fixed
being unable to afford more labour at current sales

Microeconomics Keyword Quiz Flashcards | StudBud