Chisum Econ - Micro Mega Quiz

As an individual consumes more of a good, what happens to marginal utility?

True or False: A price ceiling set below equilibrium will create deadweight loss.

Assume a consumer buys fewer widgets when the price of doodads increases. Based on this, widgets and doodads are:

An effective price floor would most likely lead to which of the following?

What fundamental problem does economics try to solve?

If economic profit is 0, accounting profit is also 0

What are the four factors of production?

Which of the following includes implicit costs?

Why would a firm stay open if they are taking a loss at the profit maximizing quantity?

If the number of buyers increases in a market, which of the followings shifts will occur?

How is economic growth represented on a production possibilities curve (PPC)?

Identify the economic system: Stanistan is a dictatorship where a central planning board makes all economic decisions.

When a firm experiences diminishing marginal returns we know:

If price = 5 dollars and marginal cost = 4 dollars then to maximize profit this firm should:

What is the "foregone value of the next best alternative"?

Which of the following best defines comparative advantage?

What term fits the following definition: "benefit received when a buyer pays a lower price than they are willing to pay"

If quantity demanded increases by 20% when price falls by 50%, the good is:

What does a production possibilities curve (PPC) represent?

If consumers consider peanut butter a luxury and chocolate a necessity, which of the following is true?

Which of the following best describes a mixed economy?

If the price of a good increases, which of the following will occur?

Calculate the elasticity of widgets if a 30% increase in price decreases quantity by 20%

Based on this chart, what is the marginal utility of the second slice of pizza?

Calculate total economic welfare if consumer surplus is $10, producer surplus is $5, and deadweight loss is $3

According to the Law of Supply, price and quantity supplied are inversely related.

When the long run ATC is increasing, we are experiencing:

Single Cinema is the only movie theater in the town of Townsville. Identify the market structure.

Which of the following shifts would increase the market price and decrease the equilibrium quantity?

To maximize profit, a firm should produce where:

Based on this chart, how many slices of pizza should this consumer buy?

At an output of 0, variable costs are:

Which of the following best explains scarcity?

Identify the economic system: In Libertania, resources are allocated by free exchange between consumers and producers.

Joe can study for an econ exam, or mow lawns for $30, or work at CiCi's for $40. Calculate opportunity cost of studying.

If a consumer buys less spam when their income increases, what kind of good is spam?

What type of factor of production would car-building robot fall under?

If in the short-run ATC is 9, the selling price of the good is 7, and AVC is 6, which of the following is true?

True or False: A price floor set below equilibrium will create deadweight loss.

Which cost is represented by the difference between total cost and variable cost?

If a market is experiences a surplus of quantity, which of the following would return this market to equilibrium?

When marginal cost is below average total cost, ATC is decreasing.

Country A can make 1 X's or 2 Z's. Country B can make 1 X's or 5 Z's. Who has comparative advantage in X's?

A straight line (non-curved) PPC represents which of the following?

Which of the following best defines absolute advantage?

Which of the following would cause an outward shift of the PPC?

In the long run, all costs are variable costs.

In a perfectly competitive market, firms earn positive economic profits. How will this market change over the long run?

Assume that production of Widgets is noisy and lowers home values around widget factories. Identify the market failure.

If average total cost is 6 dollars at an output of 4, what is total cost?