Microeconomics quiz

Multiple choice questions from january series

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

1. 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
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Other questions in this quiz

2. 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

3. the shift in the supply curve for computers, left can result from

  • a decrease in the demand for computers
  • increased economies of scale in the computer manufacturing industry
  • an increase in wages in the computer manufacturing industry
  • a decline in the price of computers

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. one reason why specialisation raises labour productivity is because

  • labour replaces capital to produce goods and services
  • specialisation requires an economy to produce on its production possibility boundary
  • the division of labour makes it cost-effective to provide workers with specialist equipment
  • specialisation shifts the production possibility boundary to the left

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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