Quiz
Microeconomics - Ethiopian University Exit Exam (EUEE) Practice Exam
Create a free account to finish this quiz
Save your progress and see your final score.
Already have an account? Sign in
Questions in this quiz (25)
1Demand Which of the following is NOT a factor of production?
- ALand
- BLabor
- CCapital
- DDemand
2The price elasticity of demand measures:
- AThe responsiveness of demand to changes in income
- BThe responsiveness of demand to changes in price
- CThe responsiveness of supply to changes in price
- DThe responsiveness of supply to changes in income
3When a firm operates at its minimum efficient scale, it:
- AProduces the maximum possible output with the least amount of inputs
- BProduces the minimum possible output with the least amount of inputs
- CProduces the maximum possible output with the most amount of inputs
- DProduces the minimum possible output with the most amount of inputs
4The demand curve is downward sloping because:
- AAs price increases, quantity demanded increases
- BAs price increases, quantity demanded decreases
- CAs quantity demanded increases, price increases
- DAs quantity demanded decreases, price increases
5When a market is in equilibrium:
- AThere is excess demand
- BThere is excess supply
- CQuantity demanded equals quantity supplied
- DThe price is below the equilibrium price
6A decrease in supply and an increase in demand will lead to:
- AAn increase in equilibrium price and an indeterminate change in equilibrium quantity
- BA decrease in equilibrium price and an indeterminate change in equilibrium quantity
- CAn increase in equilibrium quantity and an indeterminate change in equilibrium price
- DA decrease in equilibrium quantity and an indeterminate change in equilibrium price
7A perfectly competitive market is characterized by:
- AA large number of buyers and sellers
- BFirms producing differentiated products
- CThe ability of firms to influence the market price
- DHigh barriers to entry
8When a firm earns positive economic profit:
- AIt is earning more than its accounting profit
- BIt is earning a rate of return equal to its opportunity cost of capital
- CIt is earning a rate of return greater than its opportunity cost of capital
- DIt is earning a rate of return less than its opportunity cost of capital
9The long-run average cost curve is:
- AThe sum of the firm's fixed and variable costs
- BThe firm's total cost divided by its output
- CThe firm's variable cost divided by its output
- DThe firm's total cost divided by its fixed cost
10A price ceiling is:
- AA legal minimum price that can be charged for a good or service
- BA legal maximum price that can be charged for a good or service
- CThe price at which quantity demanded equals quantity supplied
- DThe price at which all firms earn zero economic profit
11Which of the following is a characteristic of public good?
- ANon-excludability
- BNon-rivalry
- CExcludability
- DRivalry
12The law of diminishing marginal utility states that:
- AAs a consumer consumes more of a good, the additional satisfaction from each additional unit of the good decreases
- BAs a consumer consumes more of a good, the price of the good decreases
- CAs a producer produces more of a good, the additional cost of producing each additional unit of the good increases
- DAs a producer produces more of a good, the price of the good decreases
13The income elasticity of demand measures:
- AThe responsiveness of demand to changes in price
- BThe responsiveness of demand to changes in income
- CThe responsiveness of supply to changes in price
- DThe responsiveness of supply to changes in income
14An increase in the price of a complementary good will lead to:
- AAn increase in the demand for the good
- BA decrease in the demand for the good
- CAn increase in the supply of the good
- DA decrease in the supply of the good
15When a firm engages in price discrimination, it:
- ACharges different prices to different customers for the same good or service
- BCharges the same price to all customers for the same good or service
- CCharges different prices to different customers for different goods or services
- DCharges a price above the market equilibrium price
16The concept of consumer surplus refers to:
- AThe difference between the price a consumer is willing to pay for a good and the price the consumer actually pays for the good
- BThe difference between the total cost of producing a good and the price the firm receives for the good
- CThe difference between the price the firm receives for a good and the minimum price it is willing to accept for the good
- DThe difference between the quantity of a good that consumers are willing to buy and the quantity they actually buy.
17When a market is in disequilibrium:
- AThere is excess demand
- BThere is excess supply
- CQuantity demanded equals quantity supplied
- DPrice is below equilibrium price
18A monopoly is characterized by:
- AA large number of buyers and sellers
- BFirms producing differentiated products
- CThe ability of firms to influence market price
- DHigh barriers to entry
19When a firm earns negative economic profit:
- AIt is earning more than its accounting profit
- BIt is earning a rate of return equal to its opportunity cost of capital
- CIt is earning a rate of return greater than its opportunity cost of capital
- DIt is earning a rate of return less than its opportunity cost of capital
20The short-run marginal cost curve is:
- AThe sum of the firm's fixed and variable costs
- BThe firm's total cost divided by its output
- CThe firm's variable cost divided by its output
- DThe additional cost of producing one additional unit of output
21A price floor is:
- AA legal minimum price that can be charged for a good or service
- BA price above the equilibrium price
- CA legal maximum price that can be charged for a good or service
- DA government subsidy given to firms producing a good or service
22The long-run average cost curve is U-shaped because of:
- ADiseconomies of scale
- BEconomies of scope
- CDecreasing marginal returns
- DIncreasing marginal returns
23A perfectly competitive market is characterized by:
- AA large number of buyers and sellers
- BHomogeneous products
- CPerfect information
- DAll of the above
24A natural monopoly arises when:
- AThere are economies of scale over a large range of output
- BThere are diseconomies of scale over a large range of output
- CThere are no barriers to entry
- DThere are no substitutes for the product
25When a firm earns positive economic profit in the short run:
- AIt will continue to earn positive economic profit in the long run
- BIt will exit the market in the long run
- CNew firms will enter the market in the long run, driving down economic profit
- DThe market will become more competitive, driving up economic profit for all firms
Information
- Description
- Microeconomics - Ethiopian University Exit Exam (EUEE) Practice Exam
- Author
- Endashaw Yohannes
- Language
- English
- Views
- 260
- Tags
- Rating
- No ratings yet Rate this quiz