MIcroeconomics Test Review

What is the name of the point at which demand and supply intersect?

• Scarcity

• Equilibrium

• Resources

• Profit Margin

To calculate profit, producers subtract their total production cost from their?

• Marginal Revenue

• Marginal Cost

• Equilibrium

• Total Revenue

When an oligopoly exists, how many producers dominate the market?

• None

• Many

• A Few

• One

Which of these best describes an opportunity cost?

• A Win-Win

• A Loss

• A Chance

• A Tradeoff

Which of these best describes an opportunity cost?

• A Win-Win

• A Loss

• A Chance

• A Tradeoff

The amount of goods and services consumers want is called the?

• Supply

• Demand

How do changing prices affect supply and demand?

• As price decreases, supply decreases, but demand increases.

• As price increases, supply decreases, but demand increases.

• As price increases, both supply and demand increase.

• As price decreases, both supply and demand decrease.

According to the law of supply, price and quantity move

• Along a track in the same direction.

• Along a track in different directions.

• From different points towards one another.

• From the same point away from one another.

According to the law of demand, price and quantity move

• Along a track in the same direction.

• Along a track in different directions.

• From different points towards one another.

• From the same point away from one another.

What is a reward or punishment that encourage people to do or not to do certain things?

• Elasticity

• Incentives

• Specialization

• Production Cost