Microeconomics quiz

Multiple choice questions from january series

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

1. one reason why specialisation raises labour productivity is because

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

2. cross elasticity of demand measures the extent to which a change in

  • the demand for one good affects the price of another good
  • the price of one good affects the demand for another good
  • consumers' incomes affect the demand for a good
  • the demand for a good affects the amount supplied

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

  • negative
  • positive
  • zero
  • greater than 1

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

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

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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