Basic Microeconomics MCQ
1. When a company retains a product but reduces marketing costs, it is referred to as __________.
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Correct Answer:
Harvesting
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2. When a business is calculating its operating costs, it must include _____.
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Variable costs
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3. When doing research, economists _______
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All of the above
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4. For a purely competitive firm _______________; and for a uniform-price monopolist _______________ :
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P = MR = AR; P = AR>MR
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5. Excess capacity is the amount by which the _____ exceeds the quantity that the firm produces.
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Efficient scale.
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6. People employed by a seller or an auctioneer to make bids on behalf of the seller are called _____.
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Shill bidders
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7. The bottled water industry has experienced ________ than the carbonated beverage industry.
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Much greater growth
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8. The characteristics of monopoly are ____________ represented within a capitalistic economy.
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Narrowly (about 6%)
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9. The description of an economy by stating facts is called __________________ .
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Positive economics
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10. In the u.s. manufacturing sector, unionized jobs have _________________ in recent years.
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Have trended down
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11. In the beginning, some entrepreneurs use ____________ as a source of financing.
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Personal credit cards
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12. International trade is fundamentally a ________________________.
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Win-win situation
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13. In the diagram to the right, point a provides the _____, point b the _____, and point c the _____.
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Equilibrium price; market equilibrium; equilibrium quantity
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14. Information asymmetry in a market can lead to ________.
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A market failure
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15. The term ____________ refers to the percentage share of a firm's total sales in the market.
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Market share
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16. In a market system, producers are _________ seeking new opportunities to satisfy consumer needs.
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Continually
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17. If the union (monopoly seller) faces a _____ the situation is called bilateral monopoly.
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Monopsony buyer
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18. If the government assigns property rights to a common resource, _______.
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The marginal social cost curve becomes the marginal private cost curve, and the use of the resource is efficient
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19. If the demand for iphones rises as incomes increase, then the iphone is a(n) _____ good.
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20. If people have ______ income, they will purchase more of a normalgood.
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21. If people decide to purchase less at every price level, __________ (shift left) will result.
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Decrease in demand
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22. If output is three units, then mr>mc>avc and output should be _________ .
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Increased
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23. If an entity can exist apart from one or more related entities, it is said to be ____-independent.
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Existence
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24. Human capital is the improvement in ________ created by ________.
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Labor; education and knowledge
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25. Capital accumulation is the _____, including _____ capital.
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Growth of capital resources; human
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26. All other things being equal, an increase in supply results in a(n) _____
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Increase in equilibrium quantity and a decrease in equilibrium price
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27. Allocation is concerned with how we choose to use our scarce resources on ___________________.
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A limited variety of different projects
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28. __________________ law implies ownership over an idea or concept or image
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Intellectual property
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29. The main difference between perfect competition and imperfect competition involves _____.
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Control over price
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30. In a simple circular-flow model, there are flows of _________ and flows of _________.
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Both (a) and (b) are correct.
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31. In a public debate on evolution, ____ refuted the points made against evolution by ____.
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Huxley; Wilberforce
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32. Refer to exhibit 3-14. at a price of $11, there is a ____________ unit ____________ of good x.
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Shortage; 290
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33. The controller of a monopoly sets the price of goods by charging _____.
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The price at which the profit is maximized.
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34. The earliest written records of auctions are from _____.
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35. In the table above at an output of four units the amount of normal profit is _________ .
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Positive Figure
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36. Compared with competitive markets, monopolies charge ______ prices and produce a ______ output.
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Higher; lower
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37. As you become more educated, you provide your environment with a ________
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Producer surplus
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38. For most high-income countries of the world, gdp _________________ over time.
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Has risen gradually
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39. Standard deviation measures _____ risk while beta measures _____ risk.
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Total, systematic
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40. The demand for ben & jerry's ice cream will likely be ________ the demand for dessert.
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More price elastic than
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41. _____________ has occurred if a government-owned firm becomes privately owned.
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Privatization
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42. All of these statements are characteristic of vzv infections except __________.
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A person can get shingles from a person who has chickenpox
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43. A rise in mpc makes the total expenditures (te) curve __________ and __________ the multiplier.
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Steeper; raises.
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44. A production quota is ______ because at the quantity produced ______.
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Increases; rises; exceeds
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45. Accountants include ____ costs as part of a firm’s costs, while economists include ____ costs.
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Explicit; explicit and implicit
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46. A giffen good is one in which the _____ curve is _____ sloped.
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Demand; positively
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47. You can afford to buy the latest hdtv, which means that it _____ as demand for you.
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Does not count
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48. You are analyzing a trade-off when you compare the _____and _____ of doing something.
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Costs; benefits
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49. With _____________ demand the price changes, but the amount purchased remains the same.
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Perfectly inelastic
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50. When consumer demandis sensitive to price changes, _____ occurs.
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Elastic demand
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51. Total demand is a function of three separate situations, which can be described as ___________.
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All of these
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52. The most common pattern for marginal utility is ____________________.
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Diminishing marginal utility
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53. The demand will be _______________ if the consumer has _________ substitute goods to choose from
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Elastic; more
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54. Price gouging is _____
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A natural response to a sudden increase in demand.
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55. Mc is a _____-shaped curve due to the law of diminishing returns.
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U (correct)
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56. Mc = atc at the minimum of _________ .
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57. In microeconomics, the term _____________________ is synonymous with economies of scale.
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Increasing returns to scale
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58. In a "seller's market" ________.
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Demand exceeds supply
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59. Households ________ final goods and services in the ________ market.
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Purchase; product
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60. As the marginal physical product of a variable input __________, the marginal cost __________.
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61. Allocative efficiency best explains ________, and productive efficiency best explains ________.
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What will be produced; how something will be produced
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62. A ________ program is one for which the recipient qualifies on the basis of ________.
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Means-tested; income
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63. _____ is rival and _____ is nonrival.
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A seat on a bus at rush hour; national defense
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64. _____ is excludable and _____ is nonexcludable.
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A camera; a concert in the park
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65. Price wars are prima facie evidence of _____.
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Oligopoly.
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66. Jewelry, art, hairstyles and clothing each represent examples of ________.
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Material culture
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67. An increase in productivity will _____.
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Increase aggregate supply.
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68. An increase in income taxes ________ employment and ________ potential gdp.
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decreases; decreases
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69. According to the law of demand, a change in _______ causes a movement along the demand curve.
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The price of the good
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70. At the highest price, you would expect the demand for goods and services to be the _____.
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71. If demand is inelastic, the tax burden falls primarily on the _____ and deadweight loss is _____.
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Seller; large.
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72. _________ is the synchronized movement of goods through the channel.
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The supply chain
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73. In the ____________, households work and receive payment from firms.
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Labor market
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74. In the ______________, households receive goods and services and pay firms for them
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Goods and services market
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75. Normative economics deals with ____ and positive economics deals with ____.
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What should be; what is
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76. When unskilled teens earn less than college graduates, society answers the ________ question.
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77. When a _____ is applied to a labor market, it is called a minimum wage.
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Price floor
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78. Given linear demand curves, if demand increases and supply decreases, then __________.
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The equilibrium price will increase, but the effect on the equilibrium quantity will be ambiguous
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79. A firm's total revenue is the _____ of its output multiplied by the _____.
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Correct Answer:
price; number of units of output sold
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Microeconomics MCQs | Topic-wise
