REVISION MICROECONOMICS

If there are two goods with positive prices and the price of one good is reduced, while income and other prices remain constant, then the size of the budget set is reduced.

• True

• False

The graph represents: Demand or Supply?

• Demand
• Supply

Tags

CCSS.HSA.CED.A.2

CCSS.HSA.REI.D.10

CCSS.HSS.ID.C.7

Elastic or Inelastic

• Elastic
• Inelastic

Elastic or Inelastic

• Elastic
• Inelastic

Refers to all plots of ground and other natural resources used in the production of goods and services.

• Land

• Labor

• Entrepreneurial Ability

• Capital

If the price of Kellogg's Corn Flakes goes up from $1.89 to $2.05 and quantity demanded changes from 250 to 210, then the price elasticity of demand would be:

• 0.47

• 0.02

• 250

• 2.14

Alyssa’s Floral Shoppe dropped its prices for a dozen roses from $45 to $35 this year. Because of this decrease in price, the quantity sold increased from 1000 to 1500. The price elasticity of demand for Alyssa’s roses is:

• 1.00.

• 1.6.

• 0.625.

• 2.25

The income elasticity of demand is a measure of the:

• relative responsiveness of quantity demanded to changes in income.

• absolute change in demand yielded by an absolute change in income.

• slope of the income-consumption curve.

• negative slope of a market demand curve.

Total Costs / Quantity = _____

• Marginal Cost
• Average Total Cost
• Implicit Cost
• Explicit Cost

Variable Cost/Quantity = _______

• Marginal Variable Cost
• Average Fixed Cost
• Average Variable Cost
• Marginal Total Cost