Microeconomics quiz

Multiple choice questions from january series

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

1. the cross elasticity of demand between two complementary products is always

  • zero
  • greater than 1
  • negative
  • positive
1 of 20

Other questions in this quiz

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

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

3. 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
  • prices perform an incentive function in resource allocation
  • the product has few substitutes
  • wants are infinite

4. 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 the good increases
  • the price of a complementary good increases
  • the tax on the good increases

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

  • incomes are distributed unequally
  • limited resources have alternative uses
  • wants increase with income
  • high demand leads to high prices

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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