Quiz: Micro Economics

It is too complex for practical use It only considers qualitative data It cannot be applied to market economies It does not account for changes over time

A perfectly competitive market. A market with a large number of small sellers. A market structure with only two sellers. A market structure with a single seller and no close substitutes for the product.

The decision-making processes of single entities Aggregate economic phenomena like inflation and unemployment The behavior of individual consumers and firms The analysis of individual markets

When the market price equals the intrinsic value of a good The balance between production costs and utility The point where the consumer maximizes total utility within their budget When a consumer's income is fully spent with no savings

Marginal cost. Total cost. Fixed cost. Variable cost.

The utility based on the functionality of a product The overall satisfaction from a product's existence The extra utility from a service's environment The satisfaction derived from the services provided along with a product

Utility can be measured cardinally. Utility is the same for each consumer. Utility decreases with consumption. Utility is ranked ordinally.

Demand is completely unresponsive to price changes. Price changes by a larger percentage than the demand. Demand changes by a larger percentage than the price. Total revenue remains unchanged when the price changes.

Money has no marginal utility. The marginal utility of money decreases with income. The marginal utility of money is the highest of all goods. Marginal utility of money is constant.

Prices are the same as in a monopoly. Prices are always lower than in competitive markets. Prices may be higher than in more competitive markets due to limited competition. There are no effects on consumer prices.