01
Choose one
1 point
A student can work for $20 per hour or attend a three-hour economics workshop that costs $30. If the student attends the workshop, which statement best identifies the opportunity cost of attending?
Free Practice Quiz Question List
Applied Microeconomics: Markets, Firms, and Policy Online Quiz Questions
Use this free practice quiz with 10 questions to review Applied Microeconomics: Markets, Firms, and Policy, test your knowledge, and prepare for your next test or exam.
10 questions
02
Choose one
1 point
Printers and ink cartridges are complements. If the price of printers falls while the price of ink remains unchanged, what happens in the market for ink?
- A
A movement downward along the ink demand curve
- B
A leftward shift of the ink demand curve
- C
A rightward shift of the ink demand curve
- D
A rightward shift of the ink supply curve
03
Choose one
1 point
A market table shows that at a price of $10, quantity demanded is 80 units and quantity supplied is 40 units. What is the shortage?
- A
40 units
- B
20 units
- C
80 units
- D
120 units
04
Choose one
1 point
A perfectly competitive firm faces a market price above its average variable cost but below its average total cost. Which decision rule correctly describes its short-run output choice?
- A
Produce where price equals average total cost, regardless of marginal cost
- B
Produce the quantity that generates the highest total revenue
- C
Shut down whenever economic profit is negative
- D
Produce where price equals marginal cost on the rising portion of MC, provided price is at least AVC
05
True or false
1 point
True or false: A binding price ceiling set below the market equilibrium price creates a shortage because quantity demanded exceeds quantity supplied.
- A
True
- B
False
06
True or false
1 point
True or false: If a tax is legally collected from sellers, sellers must bear the larger share of its economic burden.
- A
True
- B
False
07
Written response
1 point
A market has quantity demanded QD = 120 - 4P and quantity supplied QS = 20 + 6P. Enter the equilibrium price in dollars. No tolerance is allowed.
08
Written response
1 point
A worker's marginal product is 8 units per hour, and the firm's product sells for 25 dollars per unit in a competitive output market. Enter the worker's marginal revenue product as a numeric amount in dollars per hour. No tolerance is allowed.
09
Fill in the blank
1 point
A consumer maximizing utility across two goods should allocate spending until the is equal across the goods, unless a corner solution or indivisibility prevents exact equality.
10
Choose all
1 point
Select all correct statements about market failure and policy responses.
- A
A negative production externality can make marginal social cost exceed marginal private cost.
- B
A public good is rival and excludable, so private markets generally provide too much of it.
- C
A corrective tax can reduce output by making producers account for an external cost.
- D
Tradable permits can reduce pollution while allowing firms flexibility in how they comply.
- E
A positive consumption externality usually causes the unregulated market to consume more than the efficient quantity.