Microeconomics MCQ Questions Answers

1. Constant returns to scale are features of a firm's technology that _______.

2. During the progressive era, economic production shifted from ____ to ____.

3. During periods of deflation _____ will be hurt and _____ will be helped.

4. A market with well-established rules and structure is a(n) _______ market.

5. A market economy will produce _____ without any government regulation.

6. Economies of scale based intra-industry trade models are primarily drive by ______.

7. Due to a nation's weak currency, people may have to fall back on __________.

8. Using tariffs to generate government revenue is most common among ________.

9. So ______ has a comparative advantage in producing ______.

10. The world bank system is controlled by _______.

11. ____ deals with the likelihood that an agency or department can implement a policy well.

12. A system of allocating scarce goods and services using criteria other than price is _____.

13. A price ceiling is a legally imposed ___________ price.

14. A person ________ be cheaply prevented from using national defense, a(n) ________ good.

15. A monopolist's goal is to maximize _____.

16. A period of strong economic growth tends to make a __________________.

17. When a company retains a product but reduces marketing costs, it is referred to as __________.

18. When a business is calculating its operating costs, it must include _____.

19. When doing research, economists _______

20. For a purely competitive firm _______________; and for a uniform-price monopolist _______________ :

21. Excess capacity is the amount by which the _____ exceeds the quantity that the firm produces.

22. People employed by a seller or an auctioneer to make bids on behalf of the seller are called _____.

23. The bottled water industry has experienced ________ than the carbonated beverage industry.

24. The characteristics of monopoly are ____________ represented within a capitalistic economy.

25. The description of an economy by stating facts is called __________________ .

26. In the u.s. manufacturing sector, unionized jobs have _________________ in recent years.

27. In the beginning, some entrepreneurs use ____________ as a source of financing.

28. International trade is fundamentally a ________________________.

29. In the diagram to the right, point a provides the _____, point b the _____, and point c the _____.

30. Information asymmetry in a market can lead to ________.

31. The term ____________ refers to the percentage share of a firm's total sales in the market.

32. In a market system, producers are _________ seeking new opportunities to satisfy consumer needs.

33. If the union (monopoly seller) faces a _____ the situation is called bilateral monopoly.

34. If the government assigns property rights to a common resource, _______.

35. If the demand for iphones rises as incomes increase, then the iphone is a(n) _____ good.

36. If people have ______ income, they will purchase more of a normalgood.

37. If people decide to purchase less at every price level, __________ (shift left) will result.

38. If output is three units, then mr>mc>avc and output should be _________ .

39. If an entity can exist apart from one or more related entities, it is said to be ____-independent.

40. Human capital is the improvement in ________ created by ________.

41. Capital accumulation is the _____, including _____ capital.

42. All other things being equal, an increase in supply results in a(n) _____

43. Allocation is concerned with how we choose to use our scarce resources on ___________________.

44. __________________ law implies ownership over an idea or concept or image

45. The main difference between perfect competition and imperfect competition involves _____.

46. In a simple circular-flow model, there are flows of _________ and flows of _________.

47. In a public debate on evolution, ____ refuted the points made against evolution by ____.

48. Refer to exhibit 3-14. at a price of $11, there is a ____________ unit ____________ of good x.

49. The controller of a monopoly sets the price of goods by charging _____.

50. The earliest written records of auctions are from _____.

51. In the table above at an output of four units the amount of normal profit is _________ .

52. Compared with competitive markets, monopolies charge ______ prices and produce a ______ output.

53. As you become more educated, you provide your environment with a ________

54. For most high-income countries of the world, gdp _________________ over time.

55. The demand for plums is unit elastic if _____.

56. Elasticity is the percentage change in quantity divided by the percentage change in _______.

57. The global trend towards large multinational firms is partially driven by __________.

58. __________ is the theoretical basis for reality therapy.

59. Standard deviation measures _____ risk while beta measures _____ risk.

60. The demand for ben & jerry's ice cream will likely be ________ the demand for dessert.

61. _____________ has occurred if a government-owned firm becomes privately owned.

62. The two types of goods and services produced are _______. an example of _______.

63. The gap between ______ is the output gap.

64. Firms, households, and governments use the credit market for borrowing. The credit demand curve shows the relationship between the quantity of credit demanded and the real interest rate. the credit demand curve slopes downward because ____________.

65. The business cycle occurs because ______.

66. The ______________ is the average tendency to save income at a given income level.

67. Forms of money in the united states consist of paper money, coins, and _____.

68. The location of a firm will be a _________ factor of production in ________ run.

69. Each point on the demand curve represents the quantity demanded at a specific ______.

70. Diminishing returns begin to occur with the hiring of the _________ unit of labor.

71. A ______ is the difference between the regular selling price of an item and its discounted price.

72. The supply curve represents the _____ price at which a firm is willing to _____.

73. Individual consumers supply ____ and purchase ____.

74. The amount of an increase in income is called the _________ income.

75. If the price elasticity of demand is equal to 2, the good has _____ demand.

76. If people have ______ income, they will purchase more of an "inferior"good.

77. If demand is inelastic, a price ________ causes ________ in total revenue.

78. In a competitive market equilibrium the ________ equals the ________ of the last unit sold.

79. All of these statements are characteristic of vzv infections except __________.

80. A rise in mpc makes the total expenditures (te) curve __________ and __________ the multiplier.

81. A production quota is ______ because at the quantity produced ______.

82. ________ is maximized in a competitive market when marginal benefit equals marginal cost.

83. As production moves up, the average cost per unit decreases because ________.

84. Entrepreneurship (profits) account for about ______ percent of national income.

85. Public goods are a form of _____.

86. A supply curve that has a __________ slope represents a more elastic supply curve.

87. _________ is (are) the largest implicit cost of operating a business.

88. Accountants use only ________ costs in their computations of cost.

89. There is no supply curve with any model other than ____________ which has a horizontal demand line.

90. The most common pattern for marginal utility is ____________________.

91. In the goods market, firms ________ and households ________.

92. In the ____________, households receive goods and services and pay firms for them.

93. An effective price ceiling occurs at a price _____ the equilibrium price and causes a _____.

94. A person who charges a price that is determined by buying and sales decisions is a _____.

95. The gnp accounts for the aggregate of all goods and services produced by americans ____________.

96. The price of paper increases by a lot. book producers respond by supplying _____ books.

97. When unskilled teens earn less than college graduates, society answers the ________ question.

98. The __________ function will return the number of characters in a given string.

99. A giffen good is one in which the _____ curve is _____ sloped.

100. Normal profits in a perfectly competitive industry refer to ______ run profits.