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Question 1:

The scarcity definitions in Modern economics highlight what kind of problem in economics?

The problem of plenty The problem of production The problem of choice The problem of prediction

Question 2:

What economic concept does the shape of isoquants relate to?

The consumer's budget constraint. The price level of goods. The substitutability of production inputs. The quantity demanded for a good.

Question 3:

Which of the following is an exception to the Law of Diminishing Marginal Utility?

Normal goods Complementary goods Giffen goods Inferior goods

Question 4:

In which case would demand be perfectly inelastic?

When quantity demanded changes proportionately to price. When quantity demanded does not change as price changes. When quantity demanded decreases as price increases. When quantity demanded increases as price decreases.

Question 5:

What are the effects of oligopoly on consumer prices?

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.

Question 6:

In the context of wage determination, what role do trade unions play?

They oversee the implementation of labor laws. They set the minimum wages for the industry. They advise the government on tax policies. They collectively negotiate wages on behalf of their members.

Question 7:

In the short run, a monopolist maximizes profit where:

Marginal cost is greater than marginal revenue. Total revenue is equal to total cost. Marginal revenue is greater than marginal cost. Marginal revenue equals marginal cost.

Question 8:

What might be a consequence of wage differentials being too large in an economy?

Decreased competition among businesses. Uniform wage rates across different industries. Potential social and economic disparities among workers. Increased motivation for workers to improve skills.

Question 9:

What is the term for the utility derived from the form or physical characteristics of a good?

Place utility Time utility Service utility Form utility

Question 10:

What type of costs are considered when making short-term decisions?

Sunk costs. Variable costs. Total costs. Fixed costs.

Quiz: Micro Economics