Micro Econ quiz

In a market economy

• Demand determines supply and supply, in turn, determine prices.

• the allocation of scare resources determines prices and prices, in turn, determine supply and demanad

• supply determines demand and demand , in turn, determines prices

• supply and demand dtermine prices and prices, in turn, allocate the economy's scare resource

The terms equality and efficiency are similar in that they both refer to benefits to society. However they are different in that

• equality refers to the opportunity cost of the benefits and efficiency refers to everyone facing identical tradeoffs.

• equality refers to maximizing benefits from scarce resources and efficiency refers to uniform distribution of those benefits.

• equality refers to uniform distribution of those benefits and efficiency refers to maximizing benefits from scarce resources

• equality refers to everyone facing identical tradeoffs and efficiency refers to the opportunity cost of the benefits.

Willingness to pay

• measures the value that a buyer places on a good.

• is the amount a buyer is willing to pay for a good minus the amount the buyer actually pays for it.

• is the amount a seller actually receives for a good minus the minimum amount the seller is willing to accept.

• is the maximum amount a buyer is willing to pay minus the minimum amount a seller is willing to accept.

  Soal 4

Economists compute the price elasticity of demand as the

• percentage change in price divided by the percentage change in quantity demanded.

• percentage change in quantity demanded divided by the percentage change in income.

• change in quantity demanded divided by the change in the price.

• percentage change in quantity demanded divided by the percentage change in price.

Pertanyaan: Macroeconomics is the study of

• individual decision makers

• international trade.

• economy-wide phenomena

• markets for large products

Which of the following statements is correct?

• The theory of consumer choice provides a more complete understanding of supply, just as the theory of the competitive firm provides a more complete understanding of demand.

• Monetary theory provides a more complete understanding of demand, just as the theory of the competitive firm provides a more complete understanding of supply.The theory of public choice provides a more complete understanding of supply, just as the theory of the competitive firm provides a more complete understanding of demand.

• The theory of public choice provides a more complete understanding of supply, just as the theory of the competitive firm provides a more complete understanding of demand.

• The theory of consumer choice provides a more complete understanding of demand, just as the theory of the competitive firm provides a more complete understanding of supply.

The demand for a good or service is determined by

• the government.

• those who sell the good or service.

• both those who buy and those who sell the good or service.

• those who buy the good or service.

Microeconomics is the study of

• how money affects the economy.

• how government affects the economy.

• how the economy as a whole works.

• how individual households and firms make decisions.

The "invisible hand" refers to

• the equality that results from market forces allocating the goods produced in the market.

• the automatic maximization of consumer surplus in free markets.

• the marketplace guiding the self interests of market participants into promoting general economic well-being.

• the fact that social planners sometimes have to intervene, even in perfectly competitive markets, to make those markets more efficient.

For a market for a good or service to exist, there must be a

• specific time and place at which the good or service is traded.

• All of the above are correct

• group of buyers and sellers

• high degree of organization present