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Economics & Development
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Microeconomics Skill Assessment
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Quiz # 10
Microeconomics Quiz # 10
Instructions
Quiz:
Microeconomics Quiz # 10
Subject:
Demand Supply And Market Equilibrium
Total Questions:
30 MCQs
Time:
30 Minutes
Note
Do not refresh the page while taking the test.
Results along with correct answers will be shown at the end of the test.
Start Quiz
Microeconomics Quiz # 10
End Quiz
Question
1
of 30
00:00
Which of the following is an accurate statement?
Surpluses cause producers to maintain prices.
Shortages cause producers to maintain prices.
Shortages cause producers to cut prices.
Surpluses cause producers to cut prices.
An increase in supply and an increase in demand cause a(n) ______ of equilibrium quantity.
Fluctuation
Stabilization
Decrease
Increase
Which of the following are the foundation of the market system?
Indeterminate factors
Supply and demand
Production and taxation
Price ceilings and price floors
Which of the following provides a way for both buyers and sellers to communicate about the relative value of resources?
Market prices
Market supply
Market controls
Market ceilings
A quantity that cannot be predicted with any certainty is said to be which of the following?
Surplus
Indeterminate
Shortage
Fluctuating
Which of the following will cause a decrease of equilibrium price?
Increase in supply and increase in demand
Decrease in supply and no change in demand
Increase in supply and decrease in demand
Decrease in supply and increase in demand
The falling prices of component parts cause the supply curve for HD televisions to ______.
Shift downwards
Shift upwards
Shift to the left
Shift to the right
Which of the following will cause a shortage of a product?
Demand stays the same; supply stays the same.
Supply increases; demand increases.
Supply increases; demand stays the same.
Demand increases; supply stays the same.
Which of the following is an accurate statement about the free market?
A single individual decides what to produce.
Several individuals decide what to produce.
A group of ten individuals decide what to produce.
Countless individuals decide what to produce.
If the leftward shift of the demand curve is greater than the rightward shift of the supply curve, the equilibrium price will ______ and the equilibrium quantity will ______.
Rise; fall
Fall; rise
Rise; rise
Fall; fall
Price ceilings cause persistent ______.
Shortages
Scarcity
Equilibrium
Surpluses
Which of the following distorts price signals and incentives to producers and consumers?
Government-enforced price floors set at the market clearing price
Government-enforced price floors set below the market clearing price
Government-enforced price ceilings set below the market clearing price
Government-enforced price ceilings set at the market clearing price
Price ceilings on rent often cause ______.
The building of new housing to increase
The rate of return for housing investments to fall
The repair of rent-controlled apartments to increase
A surplus of apartments for low-income people
Which of the following groups would probably have the most-favorable view of using price ceilings?
Middle-income people
Low-income people
Middle- to high-income people
High-income people
Which of the following age ranges are most likely to be affected adversely by the use of a high minimum wage?
15–19 years
25–29 years
35–39 years
45–49 years
The secondary effects of an action that may occur in addition to the initial effects are called ______.
Undesirable results
Negative consequences
Harsh results
Unintended consequences
Which of the following is an accurate statement about elasticity?
A steep demand curve shows elastic demand.
A steep demand curve shows inelastic demand.
A horizontal demand curve has perfectly inelastic demand.
A vertical demand curve has somewhat inelastic demand.
Which of the following will tend to have elastic demand?
Goods with close substitutes
Goods without complements
Goods with a small proportion of income spent on them
Goods with a short amount time for people to adapt to their price change
The price elasticity of demand can be defined as the percentage change in quantity demanded ______ the percentage change in price.
Plus
Minus
Multiplied by
Divided by
If demand is ______ to changes in price, it is considered to be perfectly inelastic.
Slightly responsive
Unresponsive
Extremely responsive
Mostly unresponsive
The equation ED = 1 shows ______ demand.
Unit elastic
Elastic
Perfectly inelastic
Inelastic
The equation ED = 1 shows ______ demand.
Unit elastic
Elastic
Perfectly inelastic
Inelastic
A long-run elasticity of demand means that a consumer has ______.
Many substitutes to choose from
Few substitutes to choose from
A lot of time to adjust to a price change
Little time to adjust to a price change
When the price elasticity of demand is ______, total revenues will fall as the price declines.
Unit elastic
Perfectly elastic
Inelastic
Elastic
Which of the following price ranges of a linear demand curve will tend to be the most elastic?
Very high price range
Moderately high price range
Moderately low price range
Very low price range
In the elastic region of a demand curve, when price falls, the total revenue ______, and when price rises, the total revenue ______.
Rises; remains constant
Remains constant; falls
Falls; rises
Rises; falls
Which of the following accurately shows cross-price elasticity of demand?
The desire for one good is affected by the quantity of a related good.
The desire for one good is affected by the cost of a related good.
The quantity for one good is affected by the desire for a related good.
The quantity for one good is affected by the cost of a related good.
If the price of one good and the demand for the other good move in the same direction, then the cross-price elasticity is ______.
Negative
Positive
Neutral
Indeterminate
In a condition of perfectly elastic supply, the elasticity of supply is ______.
Zero
100
1,000,000
Infinite
Which of the following is an accurate statement about supply?
It rarely has an elasticity less than 1.
It uses price elasticity, but not price inelasticity.
It has infinite elasticity when the supply is perfectly inelastic.
It is more inelastic in the short run.
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