2016: Daniel Mor
Quiz by , created more than 1 year ago

Short review quiz for micro

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2016: Daniel Mor
Created by 2016: Daniel Mor over 8 years ago
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Micro Daniel Moreno

Question 1 of 10

1

If the price for Good A is 4$ and 9000 units are demanded, if PED is -1.5, and price changes to 6$, what is the change in quantity demanded?

Select one of the following:

  • 6750

  • 2250

  • 6650

  • -2250

Explanation

Question 2 of 10

1

If the income elasticity of demand for a product is -1.2 a firm that produces that product would benefit from a decrease in:

Select one of the following:

  • The size of the middle class.

  • The size of the lower class.

  • The size of government staff.

Explanation

Question 3 of 10

1

If a firm wants to maximise revenue they should produce to the point in which:

Select one of the following:

  • Marginal Costs=Average Total Costs

  • Marginal Revenue=0

  • Marginal Utility = 0

Explanation

Question 4 of 10

1

In a market with perfect competition:

Select one of the following:

  • Demand for firms is downward sloping.

  • Demand for the industry is downward sloping.

  • Demand for the firm is perpendicular to quantity demanded.

  • Demand for the firm equals total revenue.

Explanation

Question 5 of 10

1

In a market economy, the price mechanism:

Select one of the following:

  • Helps buyers come in contact with sellers and products.

  • Helps buyers communicate with sellers.

  • Helps sellers adjust to inflation.

Explanation

Question 6 of 10

1

PED's are useful for firms because:

Select one of the following:

  • They help firms make decisions about employment of factors.

  • They inform firms about revenue.

  • They are irrelevant to firms.

Explanation

Question 7 of 10

1

PED's are least relevant to firms in which of the following market structures:

Select one of the following:

  • Monopoly

  • Perfect Competition

  • Oligopolies

Explanation

Question 8 of 10

1

If a teacher leaves a teaching post with a $50,000 anual salary and opens a doughnut shop for $5,000 that will make $145,000 a year the teacher has made:

Select one of the following:

  • $140,000 Economic Profit

  • $95,000 Normal Profit

  • $90,000 Economic Profit

  • An economic profit greater than accounting profit.

Explanation

Question 9 of 10

1

A firm will leave its industry and change it for another when:

Select one of the following:

  • It can't cover its ATC.

  • It can't afford it MC.

  • It's profit does not surpass it's implicit costs.

Explanation

Question 10 of 10

1

A company with a lot of latent demand might be:

Select one of the following:

  • Pepsi

  • Apple

  • Lamborghini

  • Twinnings

Explanation

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