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Microeconomics 10 Multiple Choice Question Quiz

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  1. 1The Law of Diminishing Marginal Returns is not true under these circumstances:
    1. AConstant marginal utility of money, application to money and rare collection.
    2. BConstant marginal utility of money, diminishing marginal utility and rationality
    3. CApplication to money, rare collection and intoxicants
    4. DConstant marginal utility of money, intoxicants and rationality
  2. 2Which of these costs are variable?
    1. AElectricity, salaries, oil, commissions
    2. BSalaries, transportation, commissions, insurance
    3. CMachinery, wages, insurance, maintenance
    4. DTransportation, wages, commissions, oil
  3. 3Order these terms from more competitive to less competitive:
    1. APerfect Competition—Oligopoly—Monopolistic Competition—Duopoly—Monopoly—Pure Monopoly
    2. BPerfect Competition—Monopolistic Competition—Oligopoly—Duopoly—Monopoly—Pure Monopoly
    3. CPerfect Competition—Monopolistic Competition— Duopoly —Oligopoly—Monopoly—Pure Monopoly
    4. DPerfect Competition—Oligopoly— Duopoly — Monopolistic Competition —Monopoly—Pure Monopoly
  4. 4If long run input is 67% and output is 64% it is...
    1. AEconomies of scale
    2. BDiseconomies of scale
    3. CDiminishing returns to scale
    4. DIncreasing returns to scale
  5. 5Which of these does not shift demand?
    1. ANumber of buyers
    2. BMarket expectations
    3. Cresource cost
    4. DIncome of buyers
  6. 6At what point is a kilo of cheese more elastic?
    1. A$0
    2. B$1
    3. C$2
    4. D$5
  7. 7Which of these is upward sloping in Xed?
    1. ASubstitutes
    2. BComplements
    3. CNormal goods
    4. DInferior goods
  8. 8Which of these is not a possible gain of specialization?
    1. ABigger global market
    2. BMore variety of products
    3. CPrices increase
    4. DHigher total output
  9. 9How is productivity typically measured?
    1. ATotal amount of money the firm makes
    2. BHow many utils does the product give the consumer
    3. CInput of land and capital
    4. DOutput per hour worked
  10. 10Ireland produces 30 units of beer and 10 units of coffee. Colombia produces 10 units of beer and 30 units of coffee. What are the terms of trade?
    1. AFrom 10 to 30
    2. BFrom 1/3 to 1
    3. CFrom 1 to 3
    4. DFrom 3 to 30

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