Microeconomics quiz

Multiple choice questions from january series

Teacher recommended

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

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

  • the demand for a good affects the amount supplied
  • consumers' incomes affect the demand for a good
  • the price of one good affects the demand for another good
  • the demand for one good affects the price of another good
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2. 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

3. an economic good is one which

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

4. which one is an appropriate form of govt intervention for the problem identified

  • the use of buffer-stock scheme to stabilise the price of a public good
  • the provision of a subsidy for a product which generates negative externalities
  • imposition of a max price for a merit good
  • introduction of pollution permits to limit positive externalities

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