MICROECONOMICS QUIZ.docx

MICROECONOMICS MICROECONOMICS QUIZ

1. Economics is a social science that studies the choices that individuals,

businesses, governments, governments, and entire societies make in the presence of  ____________.  ____________. necessity  

scarcity

 

efficiency

 

poverty

2. Which of the following questions is an example of a microeconomic

question? What is the effect of an increase in the quantity of money on the price level? What is the effect effect of a decrease in the price of chocolate chip cookies on the the quantity purchased of doughnuts? What is the effect of an increase increase in government spending on economic growth? What is the relationship between between the unemployment rate and the the inflation rate?

3. Which of the following questions is an example of a macroeconomic

question? What is the impact of the development of a vaccine against lyme disease? What is the effect of a decrease in the availability of chocolate chips on the market for chocolate chip cookies? ow does an increase in the price of crude oil affect the market for minivans? What is the effect of an increase in the price of housing on the cost of living?

4.  !ll of the following categories

are factors of production except  ____________. money  

entrepreneurship

 

capital

 

land

5.  __________ is the level of consumption that people en"oy, on the

average, and is measured by average income per person. #he cost of living #he business cycle #he standard of living  

$rofit

6. #he amount of money that it takes to buy the goods and services that a

typical family consumes is ____________. the cost of living  

income the standard of living

 

inflation

7.  ! business cycle can be described as ___________ followed by

 ___________ followed by ___________ followed by ___________. an expansion% a peak% a depression% a trough an inflation% a peak% a recession% a trough an inflation% a peak% a deflation% a trough an expansion% a peak% a recession% a trough

8. #he highest&valued alternative that we give up to get something is the

 ____________. opportunity cost  

incentive marginal cost marginal benefit

9.  ! graphical relationship between two variables that move in the same

direction is called a ____________ relationship.

 

positive

 

negative

 

linear 

 

inverse

10. #he slope of a straight line ____________. equals the value measured on the y&axis divided by the value measured on the x& axis

is constant increases as the value of the variable measured on the x&axis increases increases as the value of the variable measured on the x&axis decreases

11. #he amount that consumers plan to buy during a given time period at a

particular price is the ____________. quantity demanded  

demand quantity supplied

 

supply

12. When the price of a good or service rises, ceteris paribus, its

opportunity cost ____________. falls cannot be determined remains the same  

rises

13. When the price of a good rises, ceteris paribus, people cannot afford to

buy all the things they previously bought so they buy less. #his is called the ____________ effect. substitution  

quantity

 

price

 

income

14. Willingness and ability&to&pay is a measure of ____________. efficiency

opportunity cost

marginal cost marginal benefit

15. 'f the price of a good falls, then the demand for its complement will

 ___________. decrease remain the same decrease initially and then increase  

increase

16. ! good whose demand increases as income increases is a

 ____________. normal good  

substitute

 

complement inferior good

17. 'f the price of a good falls, ceteris paribus, there is a _______________

the supply curve. movement down along leftward shift of  movement up along rightward shift of 

18. !ll of the following are likely to cause an increase in the supply of beef

except ____________. a fall in feed grain that is fed to cattle an increase in the demand for chicken an increase in the number of cattle ranchers an increase in the demand for leather goods

19. ! market moves toward its equilibrium through ad"ustments in

 ____________. supply  

demand

 

price

 

incentives

20. 'n the market for chocolate chip cookies, an increase in demand will

result in ___________. an increase in price and a decrease in quantity a decrease in both price and quantity an increase in both price and quantity a decrease in price and an increase in quantity

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