Microeconomics
| Description: This quiz is designed to assess your knowledge of Microeconomics, a branch of economics that studies the behavior of individual economic agents, such as consumers, firms, and industries, in decision-making and the allocation of resources. | |
| Number of Questions: 14 | |
| Created by: Aliensbrain Bot | |
| Tags: microeconomics supply and demand consumer behavior market structures production and costs |
What is the fundamental problem of economics?
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Scarcity of resources
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Inflation
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Unemployment
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Economic inequality
The fundamental problem of economics is scarcity, which means that society's resources are limited relative to its wants and needs.
What is the law of demand?
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As price increases, quantity demanded increases.
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As price decreases, quantity demanded increases.
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As price increases, quantity demanded decreases.
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As price decreases, quantity demanded decreases.
The law of demand states that, assuming other factors are held constant, as the price of a good or service increases, the quantity demanded of that good or service will decrease.
What is the law of supply?
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As price increases, quantity supplied increases.
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As price decreases, quantity supplied increases.
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As price increases, quantity supplied decreases.
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As price decreases, quantity supplied decreases.
The law of supply states that, assuming other factors are held constant, as the price of a good or service increases, the quantity supplied of that good or service will increase.
What is the equilibrium price?
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The price at which quantity demanded equals quantity supplied.
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The price at which quantity demanded is greater than quantity supplied.
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The price at which quantity demanded is less than quantity supplied.
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The price at which there is a shortage.
The equilibrium price is the price at which the quantity demanded of a good or service is equal to the quantity supplied of that good or service.
What are the four main types of market structures?
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Perfect competition, monopoly, oligopoly, and monopolistic competition
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Perfect competition, imperfect competition, monopoly, and oligopoly
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Perfect competition, monopoly, oligopoly, and monopsony
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Perfect competition, imperfect competition, monopoly, and monopsony
The four main types of market structures are perfect competition, monopoly, oligopoly, and monopolistic competition.
What is the difference between a perfectly competitive market and a monopoly?
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In a perfectly competitive market, there are many buyers and sellers, while in a monopoly, there is only one seller.
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In a perfectly competitive market, there is no product differentiation, while in a monopoly, there is product differentiation.
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In a perfectly competitive market, firms are price takers, while in a monopoly, firms are price makers.
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All of the above.
In a perfectly competitive market, there are many buyers and sellers, there is no product differentiation, and firms are price takers. In a monopoly, there is only one seller, there is product differentiation, and firms are price makers.
What is the profit-maximizing output for a firm in a perfectly competitive market?
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The output at which marginal cost equals marginal revenue.
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The output at which average total cost is minimized.
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The output at which total revenue is maximized.
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The output at which profit is maximized.
In a perfectly competitive market, the profit-maximizing output for a firm is the output at which marginal cost equals marginal revenue.
What is the difference between fixed costs and variable costs?
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Fixed costs are costs that do not change with output, while variable costs are costs that change with output.
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Fixed costs are costs that are paid in the short run, while variable costs are costs that are paid in the long run.
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Fixed costs are costs that are incurred regardless of whether a firm produces any output, while variable costs are costs that are incurred only when a firm produces output.
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All of the above.
Fixed costs are costs that do not change with output, variable costs are costs that change with output, fixed costs are costs that are incurred regardless of whether a firm produces any output, and variable costs are costs that are incurred only when a firm produces output.
What is the short-run supply curve for a firm?
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The curve that shows the relationship between price and quantity supplied, assuming that all inputs are fixed.
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The curve that shows the relationship between price and quantity supplied, assuming that some inputs are fixed and some inputs are variable.
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The curve that shows the relationship between price and quantity supplied, assuming that all inputs are variable.
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None of the above.
The short-run supply curve for a firm is the curve that shows the relationship between price and quantity supplied, assuming that some inputs are fixed and some inputs are variable.
What is the long-run supply curve for a firm?
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The curve that shows the relationship between price and quantity supplied, assuming that all inputs are fixed.
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The curve that shows the relationship between price and quantity supplied, assuming that some inputs are fixed and some inputs are variable.
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The curve that shows the relationship between price and quantity supplied, assuming that all inputs are variable.
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None of the above.
The long-run supply curve for a firm is the curve that shows the relationship between price and quantity supplied, assuming that all inputs are variable.
What is the difference between consumer surplus and producer surplus?
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Consumer surplus is the difference between the price consumers are willing to pay for a good or service and the price they actually pay, while producer surplus is the difference between the price producers receive for a good or service and the price they are willing to accept.
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Consumer surplus is the difference between the price consumers are willing to pay for a good or service and the price they actually pay, while producer surplus is the difference between the price producers receive for a good or service and the cost of producing that good or service.
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Consumer surplus is the difference between the price consumers are willing to pay for a good or service and the price they are willing to accept, while producer surplus is the difference between the price producers receive for a good or service and the price they are willing to pay.
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None of the above.
Consumer surplus is the difference between the price consumers are willing to pay for a good or service and the price they actually pay, while producer surplus is the difference between the price producers receive for a good or service and the cost of producing that good or service.
What is the Coase theorem?
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The theorem that states that if there are no externalities, then the allocation of resources will be efficient regardless of who owns the resources.
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The theorem that states that if there are externalities, then the allocation of resources will be inefficient regardless of who owns the resources.
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The theorem that states that if there are externalities, then the allocation of resources will be efficient if the parties involved can bargain with each other without cost.
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None of the above.
The Coase theorem states that if there are externalities, then the allocation of resources will be efficient if the parties involved can bargain with each other without cost.
What is the tragedy of the commons?
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The situation in which a shared resource is overused because each individual user has an incentive to use the resource as much as possible, even if it means that the resource is eventually depleted.
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The situation in which a shared resource is underused because each individual user has an incentive to conserve the resource, even if it means that the resource is not used to its full potential.
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The situation in which a shared resource is used efficiently because each individual user has an incentive to use the resource in a way that maximizes the total benefit to all users.
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None of the above.
The tragedy of the commons is the situation in which a shared resource is overused because each individual user has an incentive to use the resource as much as possible, even if it means that the resource is eventually depleted.
What is the difference between a positive externality and a negative externality?
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A positive externality is a benefit that one person receives from the actions of another person, while a negative externality is a cost that one person incurs from the actions of another person.
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A positive externality is a benefit that one person receives from the actions of another person, while a negative externality is a cost that one person incurs from the actions of another person, even if the other person does not intend to cause the cost.
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A positive externality is a benefit that one person receives from the actions of another person, while a negative externality is a cost that one person incurs from the actions of another person, even if the other person does not intend to cause the cost and the cost is not borne by the person who caused it.
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None of the above.
A positive externality is a benefit that one person receives from the actions of another person, while a negative externality is a cost that one person incurs from the actions of another person, even if the other person does not intend to cause the cost.