MICRO QUIZ

Which of the following is NOT a fundamental concept of microeconomics?

• A) Supply and demand

• B) Marginal analysis

• C) Opportunity cost

• D) Gross Domestic Product

The law of supply states that:

• A) As the price of a good increases, the quantity demanded will decrease

• B) As the price of a good increases, the quantity supplied will increase

• C) As the price of a good decreases, the quantity supplied will decrease

• D) As the price of a good decreases, the quantity demanded will increase

Which of the following is NOT a factor of production?

• A) Labor

• B) Land

• C) Capital

• D) Demand

The price elasticity of demand measures:

• A) How sensitive quantity demanded is to changes in price

• B) How sensitive quantity supplied is to changes in price

• C) How sensitive consumer income is to changes in price

• D) How sensitive consumer preferences are to changes in price

The profit-maximizing output level for a firm occurs where:

• A) Total revenue is maximized

• B) Marginal revenue is equal to marginal cost

• C) Marginal revenue is equal to average total cost

• D) Total cost is minimized

Which of the following is an example of a public good?

• A) Cable television

• B) A movie theater

• C) A public park

• D) A restaurant

The income effect of a price change refers to:

• A) The change in quantity demanded due to a change in consumer income

• B) The change in quantity demanded due to a change in the price of a related good

• C) The change in quantity demanded due to a change in the price of the good

• D) The change in consumer income due to a change in the price of the good

Which of the following is NOT a characteristic of a perfectly competitive market?

• A) Many buyers and sellers

• B) Homogeneous products

• C) Barriers to entry

• D) Price takers

The demand curve for a good slopes downward because:

• A) Buyers are willing and able to pay more as the quantity increases

• B) The price of a related good has decreased

• B) The price of a related good has decreased

• D) Buyers are willing and able to pay less as the quantity increases

Which of the following is NOT a type of market failure?

• A) Monopoly power

• B) Externalities

• C) Public goods

• D) Market equilibrium