Microeconomics Quiz

Accounting profit is more comprehensive than economic profit because accounting profit includes explicit and implicit costs. (T/F)

(T/F) A price ceiling set below the equilibrium price will result in a shortage of the good.

(T/F) The production possibilities frontier represents the only output an economy can produce.

Income elasticity of demand measures how a change in ______ affects the quantity of items demanded in a market.

In the absence of perfect price discrimination, in which market structures do firms face a trade-off between the output effect and price effect?

• Perfect Competition

• Monopolistic Competition

• Oligopoly

• Monopoly

• Cannot Determine

Which market structures are known as imperfect competition?

• Perfect Competition

• Monopolistic Competition

• Oligopoly

• Monopoly

• Cannot Determine

The "market-clearing" price where the quantity supplied is _____ to the quantity demand is known as the equilibrium point.

If the cross-price elasticity of two goods is negative, it implies that the goods are __________ goods.

In which market structures can you find undifferentiated products?

• Perfect Competition

• Monopolistic Competition

• Oligopoly

• Monopoly

• Cannot Determine

In which market structures do producers face a downward sloping demand curve?

• Perfect Competition

• Monopolistic Competition

• Oligopoly

• Monopoly

• Cannot Determine