(less common) indicates material that can, but rarely, appears on the AP test IV. GRAPH: or DIAGRAM: indicates the section has an accompanying graph or diagram.
35 Questions | By W010lkg | Last updated: May 8, 2019
Settings
Success! A copy of this quiz is in your dashboard.
There are certain topics in this world that you may not know or may never have any intention of knowing about, but one thing that everybody should have a foundationlevel of knowledge in is the subject of business and economics. Today, we’ll be dipping a toe into that pool by enhancing your knowledge on microeconomics. Think you can get all of the questions correct? Let’s find out!
- If a society is at point that is inside the production possibilities frontier, the society is experiencing
- Inefficiency
- Maximizing output
- Equity
- Efficiency
- A.Decrease in the quantity produced of one good as we move along the production possibilities frontier
- Increase in the quantity produced of one good as we move along the production possibilities frontier
- Increase in the quantity produced of one good divided by the decrease in the quantity produced of another good as we move along the production possibilities frontier
- Decrease in the quantity produced of one good divided by the increase in the quantity produced of another good as we move along the production possibilities frontier
- When we cannot produce more of any one good without giving up some other good that we value more highly, we haved achieved?
- Production efficiency
- Inefficiency
- Equal opportunity
- Allocative efficiency
- An upward or outward shift in the production possibilities frontier is indicative of?
- Inefficiency
- Efficiency
- Economic growth
- Equity
- A.Households are sellers in resource markets and buyers in goods markets
- Households are buyers in resources markets and sellers in goods markets
- Firms are sellers in resource markets and buyers in goods markets
- Households are excluded and only firms are represented
- The amount that consumers plan to buy during a given time period at a particular price is the?
- Quantity demanded
- Demand
- Supply
- Quantity supplied
- When the price of a good or service rises, ceteris paribus, its opportunity cost..
- Remains the same
- Cannot be determined
- Rises
- Falls
- A.
- B.
- C.
- D.
- 9.A good whose demand increases as income increases is a
- Complement
- Inferior good
- Normal good
- Subsitute
- If the price of a good or service falls , ceteris paribus, there is a?
- Rightward shift in the supply curve
- Leftward shift in the supply curve
- Movement up along the supply curve
- Movement down along the supply curve
- A.
- B.
- C.
- D.A fall in the price of feed grain that is fed to cattle
- A market moves toward its equilibrium through adjustments in
- Quantity
- Price
- Supply
- Demand
- A.
- B.
- C.
- D.
- 14.A price ceiling can cause an excess demand which leads to an illegal market in which the price exceeds the legally imposed price ceiling that is called a
- Free market
- Black market
- Free trade market
- Regulated market
- A minimum wage is an example of
- A tax
- Price ceiling
- Price floor
- Subsidy
- A.
- B.
- C.
- D.
- 17.
- A.Quantity demanded to change in the price of a good, ceteris paribus
- Price to a change in the quantity demanded of a good, ceteris paribus
- Price to a change in the quantity supplied of a good, ceteris paribus
- Quantity supplied to a change in the price of a good, ceteris paribus
- A.
- B.
- C.
- D.
- 19.If the price elasticity of demand is 3.5, an increase in price will
- Increase total revenue
- Have no effect on total revenue
- Decrease total revenue
- Have an unpredictable effect on total revenue
- If a price cut decreases total revenue, demand is
- Unit elastic
- Relatively elastic
- Relatively inelastic
- Perfectly elastic
- Factors that influence the elasticity of demand inculde all of the following except
- Resource substitution possibilities
- Closeness of substitutes
- Time elapsed since a price change
- Proportion of income spent on the good
- A.
- B.
- C.
- D.
- 23.The income elasticity of demand for an inferior good is
- Equal to zero
- Greater than zero
- Equal to one
- Less than zero
- A.The price changes by $2.50 when quantity changes by one unit
- Quantity demanded decreases by 2.5% when the price rises by 1%
- The price rises by 2.5% when quantity demanded falls by 1%
- Quantity demanded falls by 2.5 units when price changes by $1
- A.
- B.Quantity demanded changes 1.5 units for each 1% change in price
- Quantity demanded changes .5% for each 1% change in price
- Quantity demanded changes 5% for each 1% change in price
- A.
- B.
- C.
- D.
- 27.
- A.
- B.
- C.
- D.
- 28.
- A.
- B.
- C.
- D.
- 29.Price Quantity$2.40 902.60 802.80 603.00 403.20 20Demand between $2.40 and $2.60 is:
- Elastic
- Unit elastic
- Inelastic
- Perfectly elastic
- Cross-Price elasticity of demand is defined as the percentage change in____ divided by the percentage change in_____ of a related good.
- Quantity, price
- Quantity, quantity
- Price, quantity
- Price, price
- A.
- B.
- C.
- D.
- 32.
- A.
- B.
- C.
- D.
- 33.
- A.
- B.
- C.
- D.
- 34.If the demand curve is perfectly inelastic the burden of a tax on suppliers is borne:
- Entirely by the suppliers
- Entirely by the consumers
- Mostly by the suppliers and partly by the consumers, if the demand curve
- Partly by the suppliers, and mostly by the consumers, if the demand curve is elastic.
- A.
- B.
- C.
- D.
Scarcity: Basic Economic ConceptsResource Allocation and Economic Systems: Basic Economic ConceptsProduction possibilities curve (PPC): Basic Economic Concepts
Comparative advantage and trade: Basic Economic ConceptsCost-benefit analysis: Basic Economic ConceptsMarginal analysis and consumer choice: Basic Economic Concepts
Demand: Supply and DemandSupply: Supply and DemandPrice elasticity of demand: Supply and DemandPrice elasticity of supply: Supply and Demand
Other elasticities: Supply and DemandMarket equilibrium and consumer and producer surplus: Supply and DemandDisequilibrium and changes in equilibrium: Supply and DemandThe effects of government interventions in markets: Supply and DemandInternational trade and public policy: Supply and Demand
The production function: Production, cost, and the perfect competition modelShort-run production costs: Production, cost, and the perfect competition modelLong-run production costs: Production, cost, and the perfect competition model
Types of profit: Production, cost, and the perfect competition modelProfit maximization: Production, cost, and the perfect competition modelFirms’ Short-run Decisions to Produce and Long-Run Decisions to Enter or Exit a Market: Production, cost, and the perfect competition modelPerfect competition: Production, cost, and the perfect competition model
Introduction to imperfect competition: Imperfect competitionMonopoly: Imperfect competitionPrice discrimination: Imperfect competition
Monopolistic competition: Imperfect competitionOligopoly and game theory: Imperfect competition
Introduction to factor markets: Factor marketsChanges in factor demand and supply: Factor marketsProfit-maximizing behavior in perfectly competitive factor markets: Factor markets
Socially efficient and inefficient market outcomes: Market failure and the role of governmentExternalities: Market failure and the role of governmentPublic and private goods: Market failure and the role of government
The effects of government intervention in different market structures: Market failure and the role of governmentInequality: Market failure and the role of government