Microeconomics quiz

Multiple choice questions from january series

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  • Created by: Sophie
  • Created on: 27-04-13 18:25

1. the MSB of a good is greater than its MPB and so as a result there are likely to be

  • neg externalities in production
  • pos externalities in consumption
  • neg externalities in consumption
  • pos externalities in production
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2. the demand curve for a normal good will shift to the left if

  • there is a successful advertising campaign for the good
  • the price of a complementary good increases
  • the tax on the good increases
  • the price of the good increases

3. which one is an appropriate form of govt intervention for the problem identified

  • imposition of a max price for a merit good
  • the provision of a subsidy for a product which generates negative externalities
  • introduction of pollution permits to limit positive externalities
  • the use of buffer-stock scheme to stabilise the price of a public good

4. the qty supplied of a product onto a market increases when the price of the product increases. this shows that

  • the supply of the product is price inelastic
  • wants are infinite
  • prices perform an incentive function in resource allocation
  • the product has few substitutes

5. What is the central economic problem?

  • to reconcile conflict between people's unlimited wants and society's limited ability to make goods and services to meet these demands
  • to reconcile conflict between people's limited wants and society's unlimited ability to make goods and services to meet these demands
  • high unemployment, high inflation and low growth
  • low unemployment, low inflation and high growth

Comments

davidsalter

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This 10 question multiple choice quiz tests several aspects of unit 1 micro economics and could provide a relief from intensive reading as well as a guide to areas still needing revision.

Nimrahkhan

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Not easiest resource but 0k for basic revision

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