Microeconomics Class Revision - Thom

Question 1

Which of the following IS NOT a factor of production?

Accepted Answer

Housing

Question 2

Tickets to a limited music concert for my favourite artist are ELASTIC

Accepted Answer

False

Question 3

If Charlie has a lower opportunity cost to produce tables, and Bob has the lower opportunity cost to produce chairs...

Accepted Answer

Bob should produce chairs and Charlie should produce tables, Charlie and Bob should trade with one another to be more efficient

Question 4

Which of the following is the most efficent and revenue maximising tax system?

Accepted Answer

A tax on inelastic goods like cigarettes and alcohol, A tiny tax on every single purchase in the economy (VAT)

Question 5

Economics is a Social Science concerning Choices and Scarcity

Accepted Answer

True

Question 6

Which of the following is NOT an inelastic good

Accepted Answer

White Bread

Question 7

Deadweight Loss = Consumer Surplus + Producer Surplus

Accepted Answer

False

Question 8

If my CS increases by 50 and my PS decreases by 40, what has occured?

Accepted Answer

There is an increase in total welfare and no deadweight loss

Question 9

An inelastic good is not liked by businesses

Accepted Answer

False

Question 10

At which numbered point is the PPC curve showing efficient and possible resource allocations?

Accepted Answer

4, 3

Question 11

Marginal Cost can be defined as...

Accepted Answer

The change in cost by producing one more unit of a good or service.

Question 12

Public Goods are defined as what...?

Accepted Answer

Goods that are not demanded, are unprofitable, and are payed for with tax

Question 13

There is an inverse relationship between price and quantity demanded

Accepted Answer

True

Question 14

What is the equation for % Change?

Accepted Answer

(New-Old/Old) x100

Question 15

Which of the following DOES NOT shift the Demand Curve

Accepted Answer

Changes in Price

Question 16

Which of the following is a "Positive Statement"

Accepted Answer

The Income Tax Rate is 20%

Question 17

How do you calculate Marginal Utility?

Accepted Answer

MU = Change in Total Utility/Change in Units Consumed, MU = △TU/△N

Question 18

The Green area underneath the Demand Curve but above the price is...

Accepted Answer

Consumer Surplus

Question 19

A free market economy has no government intervention

Accepted Answer

True

Question 20

A price ceiling on Rent protects buyers but harms sellers

Accepted Answer

True

Question 21

Diminishing Marginal Utility means that my utility for a good will increase at a gradually decreasing rate

Accepted Answer

True

Question 22

The formula for PED (Price Elasticity of Demand) is...

Accepted Answer

PED = Change in Quantity Demanded/Change in Price, PED = △QD/△P

Question 23

Which of these economic systems exists when the Government Controls all the factors of production and businesses

Accepted Answer

Command Economy

Question 24

What determines the shifting of the Supply Curve?

Accepted Answer

Costs of Production, Factors of Production

Question 25

Fixed Costs increase as the firm increases its output

Accepted Answer

False

Question 26

A price ceiling is...

Accepted Answer

The maximum price that can be charged for a good or service

Question 27

Which of the following IS NOT an assumption of Economics?

Accepted Answer

Consumers are assumed to act irrationally making emotionally driven choices

Question 28

Elasticity of demand is the sensitivity of Consumers to changes in price

Accepted Answer

True

Question 29

Hello everyone, welcome to our fun recap quiz for the new year!

Accepted Answer

Woah!, Interesting, Hello!!!, Wow that's great!

Question 30

When my Marginal Cost = Marginal Revenue, I should consume another Unit of the Good

Accepted Answer

False

Question 31

Shifting the PPC curve to the right (outwards) could be caused by what...?

Accepted Answer

An increase in the factors of production, An increase in Land by a greater amount than a decrease in Capital

Question 32

The more inelastic supply or demand is, the greater the tax incidence on the consumer or producer

Accepted Answer

True

Microeconomics Class Revision - Thom

Questions 32

Microeconomics Class Revision - Thom

Questions 32