Microeconomics quiz

Multiple choice questions from january series

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

1. 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
1 of 20

Other questions in this quiz

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

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

3. one reason why specialisation raises labour productivity is because

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

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

  • greater than 1
  • positive
  • negative
  • zero

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

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



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.


Not easiest resource but 0k for basic revision

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