Microeconomics quiz

Multiple choice questions from january series

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

1. Choice is an important element in the basic economic problem because

  • high demand leads to high prices
  • wants increase with income
  • limited resources have alternative uses
  • incomes are distributed unequally
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Other questions in this quiz

2. govt intervention in a market economy can lead to an increase in economic welfare if

  • the price elasticity of supply of private goods is high
  • the demand for inferior goods rises as incomes increase
  • the market mechanism fails to allow for externalities
  • it leads to an increase in the consumption of demerit goods

3. what is a defining characteristic of a merit good?

  • it tends to be provided by the govt because of the problem of non-exludability
  • once the good had been supplied to one consumer, there is no extra cost in supplying it to others
  • it may be provided by the free market but not in sufficient quantities
  • it is always provided free to consumers

4. which is associated with a missing market

  • the production of a negative externality
  • a govt subsidising agricultural production
  • a monoploy restricting output
  • a firm deciding to produce a private good

5. a misallocation of resources is most likely to occur in monopoly if

  • higher prices are charged than under competitive conditions
  • other firms enter the industry
  • market output increases
  • there are economies of scale

Comments

davidsalter

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

Not easiest resource but 0k for basic revision

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