2016: Tomas Urru
Quiz by , created more than 1 year ago

A short quiz on micro.

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2016: Tomas Urru
Created by 2016: Tomas Urru over 8 years ago
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Microeconomics Quiz

Question 1 of 10

1

The substitutes available for a certain product help determine its Price Elasticity of Demand

Select one of the following:

  • True
  • False

Explanation

Question 2 of 10

1

The equation for calculating price elasticity of demand is: (%change of quatity demanded)/(%change in income)

Select one of the following:

  • True
  • False

Explanation

Question 3 of 10

1

Horizontal Integration: This is when one firm merges with or takes over another firm in the same industry at the same stage of production

Select one of the following:

  • True
  • False

Explanation

Question 4 of 10

1

The equation for calculating average cost is: total cost/cost per unit

Select one of the following:

  • True
  • False

Explanation

Question 5 of 10

1

Which of the following are examples of external economies of scale?

Select one or more of the following:

  • As businesses grow within an area, specialist skills begin to develop.

  • Better road and transport links develops as the area improve (e.g. London Docklands)

  • Low morale because of bigger size of company

Explanation

Question 6 of 10

1

In a specialized labor situation, which of the following is NOT true for workers?

Select one of the following:

  • They tend to have a simple but repetitive task.

  • The extensive practice has made them efficient and productive.

  • They switch between tasks daily.

Explanation

Question 7 of 10

1

A country has an absolute advantage over its trading partners if it is able to produce more of a good or service with the same amount of resources

Select one of the following:

  • True
  • False

Explanation

Question 8 of 10

1

An example of a tradeoff ( an exchange—giving up one thing to get something else) is a free lunch.

Select one of the following:

  • True
  • False

Explanation

Question 9 of 10

1

The law of diminishing marginal utility states that an individual gets more reward/satisfaction as they consume more and more units of a specific commodity.

Select one of the following:

  • True
  • False

Explanation

Question 10 of 10

1

Total expenditure is the same as total profit made by a business, regarding a specific market situation.

Select one of the following:

  • True
  • False

Explanation

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