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