Microeconomics quiz

Multiple choice questions from january series

Teacher recommended

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  • Created by: Sophie
  • Created on: 27-04-13 18:25
What is the central economic problem?
to reconcile conflict between people's unlimited wants and society's limited ability to make goods and services to meet these demands
1 of 17
Choice is an important element in the basic economic problem because
limited resources have alternative uses
2 of 17
a misallocation of resources is most likely to occur in monopoly if
higher prices are charged than under competitive conditions
3 of 17
in a buffer-stock scheme
an organisation might buy in the open market to maintain a minimum price in the market for a product
4 of 17
The price mechanism helps to allocate resources efficiently because
the prices of non - renewable resources will tend to rise as the stock of such resources nears depletion
5 of 17
the cross elasticity of demand between two complementary products is always
negative
6 of 17
which is associated with a missing market
the production of a negative externality
7 of 17
the MSB of a good is greater than its MPB and so as a result there are likely to be
pos externalities in consumption
8 of 17
one reason why specialisation raises labour productivity is because
the division of labour makes it cost-effective to provide workers with specialist equipment
9 of 17
the demand curve for a normal good will shift to the left if
the price of a complementary good increases
10 of 17
cross elasticity of demand measures the extent to which a change in
the price of one good affects the demand for another good
11 of 17
the qty supplied of a product onto a market increases when the price of the product increases. this shows that
prices perform an incentive function in resource allocation
12 of 17
govt intervention in a market economy can lead to an increase in economic welfare if
the market mechanism fails to allow for externalities
13 of 17
the shift in the supply curve for computers, left can result from
an increase in wages in the computer manufacturing industry
14 of 17
the income elasticity of demand for bus travel is -2.0. this means that
bus travel is an inferior good
15 of 17
an economic good is one which
has an opportunity cost in production
16 of 17
what is a defining characteristic of a merit good?
it may be provided by the free market but not in sufficient quantities
17 of 17

Other cards in this set

Card 2

Front

Choice is an important element in the basic economic problem because

Back

limited resources have alternative uses

Card 3

Front

a misallocation of resources is most likely to occur in monopoly if

Back

Preview of the front of card 3

Card 4

Front

in a buffer-stock scheme

Back

Preview of the front of card 4

Card 5

Front

The price mechanism helps to allocate resources efficiently because

Back

Preview of the front of card 5
View more cards

Comments

davidsalter

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This 10 question multiple choice quiz tests several aspects of unit 1 micro economics and could provide a relief from intensive reading as well as a guide to areas still needing revision.

Nimrahkhan

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Not easiest resource but 0k for basic revision

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