Microeconomics quiz

Multiple choice questions from january series

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

1. which one of the following situations would lead to an increase in equilibrium price

  • supply is perfectly elastic and the price of a substitute good falls
  • demand is perfectly elastic and a firm's labour costs rise
  • demand is perfectly inelastic and a firm's labour costs rise
  • demand is perfectly inelastic and a firm's labour costs fall
1 of 20

Other questions in this quiz

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

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

3. an economic good is one which

  • has an opportunity cost in production
  • makes a profit
  • doesn't use up resources
  • is supplied competitively

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

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

5. one reason why specialisation raises labour productivity is because

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

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

Similar Economics resources:

See all Economics resources »See all Government intervention in markets resources »