Microeconomics: Applied Review and Reasoning Online Quiz Questions

A price ceiling above equilibrium, creating a surplus

A price ceiling below equilibrium, creating a shortage

A price floor below equilibrium, creating a shortage

A price floor above equilibrium, creating a shortage

Quantity demanded increases when consumer income increases

Quantity demanded decreases when consumer income increases

Quantity demanded is unchanged when consumer income changes

Quantity supplied increases when consumer income increases

At least one input is fixed in both periods

All inputs are fixed in the short run

At least one input is fixed in the short run, but all inputs are variable in the long run

All inputs are variable in the short run, but at least one is fixed in the long run

True

False

True

False

One person's use does not substantially reduce availability to others

Use can be restricted easily to paying customers

It is difficult or impossible to prevent nonpayers from using it

It is an open-access fishery that can be depleted

A negative cross-price elasticity identifies substitutes

A positive cross-price elasticity identifies substitutes

A per-unit tax generally increases the equilibrium quantity exchanged

A tax can create deadweight loss by preventing mutually beneficial trades

Consumers, because demand is relatively inelastic

Consumers, because supply is relatively elastic

Sellers, because demand is relatively inelastic

Sellers, because supply is relatively elastic

MSC is above MPC, and market output exceeds socially efficient output

MSC is below MPC, and market output is below socially efficient output

MSB is above MPB, and market output exceeds socially efficient output

MSB is below MPB, and market output is below socially efficient output

Choose quantity where demand equals marginal cost, then set price equal to marginal cost.

Choose quantity where marginal revenue equals marginal cost, then find price on the demand curve.

Because the monopolist faces downward-sloping demand, marginal revenue lies below the demand curve.

Choose quantity where average total cost is minimized, then set price equal to average total cost.

It is unattainable with current resources and technology.

It is attainable but productively inefficient.

It is productively efficient and must be on the PPC.

It represents economic growth caused by improved technology.

True

False

The market always sets the highest price consumers are willing to pay.

The equilibrium price is where quantity demanded equals quantity supplied.

A surplus occurs whenever quantity demanded equals quantity supplied.

The equilibrium quantity is always zero when prices are flexible.

Sellers bear more because sellers legally remit the tax.

Buyers bear more because demand is relatively more inelastic.

Buyers and sellers always split the tax equally.

Sellers bear more because supply is relatively elastic.

Produce where price equals average total cost, then charge marginal cost.

Produce where demand equals marginal cost, then charge the market price.

Produce where marginal revenue equals marginal cost, then use demand to find price.

Produce where average variable cost is minimized, then charge the monopoly price.

True

False

True

False

The student should work because $18 is greater than $7.

The student should study because the net benefit is $7.

The student is indifferent because the academic benefit equals the opportunity cost.

The student should do neither because the resources are scarce.

It is unattainable and reflects economic growth.

It is productively efficient because it uses some available resources.

It is attainable but productively inefficient.

It must represent increasing opportunity cost.

Buy more of good A because its marginal utility per dollar is higher.

Buy more of good B because its total marginal utility is lower.

Buy equal amounts of both goods because their prices are different.

Keep spending unchanged because marginal utility cannot be compared across goods.