microeconomics term test

pdf

School

Toronto Metropolitan University *

*We aren’t endorsed by this school

Course

110

Subject

Economics

Date

Feb 20, 2024

Type

pdf

Pages

Uploaded by AmbassadorMantis4121

microeconomics term test What is the fundamental economic problem addressed by microeconomics? a) Inflation b) Unemployment c) Scarcity d) Income inequality In microeconomics, what is the law of demand? a) As prices rise, quantity demanded rises b) As prices fall, quantity demanded rises c) As prices rise, quantity demanded falls d) As prices fall, quantity demanded falls What does the term "opportunity cost" represent in microeconomic decision-making? a) The total cost of production b) The highest-valued alternative forgone when a choice is made c) The variable costs of production d) The explicit costs of production In microeconomics, what is the role of a price ceiling? a) It sets a maximum price for a good or service b) It sets a minimum price for a good or service c) It stabilizes prices in the market d) It eliminates prices altogether What is the main focus of microeconomic analysis of production? a) Market structure b) Input-output ratios c) Consumer preferences

d) Cost and output decisions of firms According to the law of diminishing marginal returns, what happens as additional units of a variable input are added while keeping other inputs constant? a) Total output increases at an increasing rate b) Total output increases at a decreasing rate c) Total output decreases d) Total output remains constant Which market structure is characterized by a large number of small firms, identical products, and easy entry and exit? a) Monopoly b) Monopolistic competition c) Oligopoly d) Perfect competition What does the term "elasticity of demand" measure in microeconomics? a) The responsiveness of quantity demanded to changes in price b) The total revenue generated by a firm c) The percentage change in quantity supplied d) The impact of taxes on consumer behavior In microeconomics, what is a perfectly elastic demand curve? a) Vertical line b) Horizontal line c) Downward-sloping line d) Upward-sloping line What is the role of a production possibility frontier (PPF) in microeconomics?

a) It shows the trade-offs between two goods b) It indicates the distribution of income in an economy c) It determines the level of unemployment d) It measures the level of inflation What is the primary determinant of the price elasticity of demand for a good? a) Availability of substitutes b) Production costs c) Government regulations d) Consumer income According to microeconomic theory, what is a regressive tax? a) A tax that takes a larger percentage of income from higher-income individuals b) A tax that takes a smaller percentage of income from lower-income individuals c) A tax that is the same for all income levels d) A tax that varies based on consumption patterns What is the main function of a production function in microeconomics? a) To determine the level of consumer satisfaction b) To analyze market demand c) To describe the relationship between inputs and outputs in production d) To set price levels in the market In microeconomics, what does the term "marginal cost" represent? a) The additional cost of producing one more unit of output b) The total cost of production c) The average cost per unit of output d) The fixed costs of production

Your preview ends here

Eager to read complete document? Join bartleby learn and gain access to the full version

Access to all documents
Unlimited textbook solutions
24/7 expert homework help

What is the key characteristic of a monopolistic market structure? a) Many small firms with similar products b) A single seller with no close substitutes c) A few large firms with differentiated products d) A large number of firms with identical products What is the primary goal of a profit-maximizing firm in microeconomics? a) Maximizing market share b) Maximizing consumer satisfaction c) Minimizing production costs d) Maximizing total revenue minus total costs What is the purpose of the Lorenz curve in microeconomics? a) To measure income inequality b) To determine consumer preferences c) To analyze production efficiency d) To assess market competition In microeconomics, what does the term "utility" refer to? a) The total revenue of a firm b) The satisfaction or pleasure derived from consuming goods and services c) The price elasticity of demand d) The cost of production What is the significance of the price elasticity coefficient being greater than 1 in microeconomics? a) The demand is elastic b) The demand is inelastic c) The demand is unitary elastic d) The supply is elastic

In microeconomics, what does the term "monopsony" refer to? a) A market with a single seller b) A market with many buyers and one seller c) A market with many buyers and many sellers d) A market with a single buyer What is the purpose of a subsidy in microeconomics? a) To increase production costs b) To decrease consumer demand c) To promote economic efficiency d) To discourage market competition According to the law of supply, what happens to the quantity supplied as the price of a good increases? a) Quantity supplied increases b) Quantity supplied decreases c) Quantity supplied remains constant d) Quantity supplied fluctuates randomly What is the primary function of a market equilibrium in microeconomics? a) To maximize producer surplus b) To minimize consumer surplus c) To balance supply and demand d) To promote price discrimination Which of the following is a characteristic of a public good in microeconomics? a) Rivalry in consumption b) Excludability c) Non-excludability

d) Limited availability In microeconomics, what is the purpose of the Consumer Price Index (CPI)? a) To measure changes in the overall level of prices in the economy b) To calculate the gross domestic product (GDP) c) To assess income distribution d) To determine market concentration What is the concept of "deadweight loss" in microeconomics? a) The loss of consumer surplus due to a tax or regulation b) The loss of producer surplus due to a subsidy c) The loss of utility in consumption d) The loss of market equilibrium What is the primary function of antitrust laws in microeconomics? a) To promote monopoly power b) To regulate international trade c) To prevent unfair business practices and promote competition d) To increase taxes on businesses What is the primary focus of behavioral economics in the context of microeconomics? a) Analyzing market structures b) Understanding how psychological factors influence economic decision-making c) Examining production costs d) Evaluating income distribution In microeconomics, what does the term "elasticity of supply" measure? a) The responsiveness of quantity supplied to changes in price b) The impact of taxes on consumer behavior

Your preview ends here

Eager to read complete document? Join bartleby learn and gain access to the full version

Access to all documents
Unlimited textbook solutions
24/7 expert homework help

c) The percentage change in quantity demanded d) The impact of changes in consumer income on market demand What is the main function of a price floor in microeconomics? a) To set a maximum price for a good or service b) To stabilize prices in the market c) To create a minimum price for a good or service d) To eliminate prices altogether

Related Documents

Practice Midterm.pdf

7.3 homework.pdf

Final exam and homeworks.xlsx

FARE*2700 Lab 3.docx

sports_econ_handout_02.12.24 (1).docx

sports_econ_handout_02.14.24.docx

1.4 gov .edited.docx

CH.15 analysis.docx

AGEC_622_LP_Homework 3.docx.pdf

Assignment3EC.docx

Homework 9:13.docx

Macro Trends and Consumer Decision Making.docx

Recommended textbooks for you

Microeconomics: Private and Public Choice (MindTa...

Economics

ISBN:9781305506893

Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Publisher:Cengage Learning

Macroeconomics: Private and Public Choice (MindTa...

Economics

ISBN:9781305506756

Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Publisher:Cengage Learning

Economics: Private and Public Choice (MindTap Cou...

Economics

ISBN:9781305506725

Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Publisher:Cengage Learning

Exploring Economics

Economics

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:SAGE Publications, Inc

MACROECONOMICS FOR TODAY

Economics

ISBN:9781337613057

Author:Tucker

Publisher:CENGAGE L

Micro Economics For Today

Economics

ISBN:9781337613064

Author:Tucker, Irvin B.

Publisher:Cengage,

SEE MORE TEXTBOOKS

Recommended textbooks for you

Microeconomics: Private and Public Choice (MindTa...
Economics
ISBN:9781305506893
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:Cengage Learning
Macroeconomics: Private and Public Choice (MindTa...
Economics
ISBN:9781305506756
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:Cengage Learning
Economics: Private and Public Choice (MindTap Cou...
Economics
ISBN:9781305506725
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:Cengage Learning
Exploring Economics
Economics
ISBN:9781544336329
Author:Robert L. Sexton
Publisher:SAGE Publications, Inc
MACROECONOMICS FOR TODAY
Economics
ISBN:9781337613057
Author:Tucker
Publisher:CENGAGE L
Micro Economics For Today
Economics
ISBN:9781337613064
Author:Tucker, Irvin B.
Publisher:Cengage,