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Quiz 3

Micro Economics Quiz

1. Elasticity In Economics Is:
A measure of responsiveness.
The relative difference in price and marginal cost.
An index used to measure market competitiveness.
2. Two Points On The Same Indifference Curve Represent The Same
Utility level
Capital level
Price level
3. Which Of The Following Industries Is Most Prone To The Occurrence Of Natural Monopolies?
Utility
Computer software
Agriculture
4. Which Of The Following Is Not A Characteristic Of A Perfectly Competitive Industry?
Producers set the price of their products freely.
The industry consists of many small firms producing similar products.
There is no government intervention in the industry.
5. The Invisible Hand Refers To:
Adam Smith’s description of the workings of market economies.
David Ricardo’s depiction of global gains from international trade.
Paul Krugman’s interpretation of the events preceding the financial crisis of 2007-08.
6. Which Of The Following Changes Would Most Likely Increase The Price Of Music CDs?
A decrease in the popularity of online music streaming services
A decrease in the cost of CD production
An increase in the price of cheese
7. The Demand Curve For Cigarettes Is Steep Because:
The quantity of cigarettes demanded does not vary much with price.
When the price increases quantity of cigarettes supplied increases rapidly.
The cigarette market is competitive.
8. When The Planting Of A Beautiful Garden In One Home Increases The Happiness Of The Neighbors Who Also Have A View Of The Garden, The Garden Is Said To Create A
Positive externality
Positive marginal cost
Human factor of production
9. According To British Economist David Ricardo, The Gains From International Trade Depend On:
Comparative advantage in production
The restrictions placed by the government on trade transactions
The possession of natural resources
10. Which Of The Following Would Be An Opportunity Cost Of Going To College?
Four years of foregone earnings in the labor market
The student debt accumulated during college
The tuition cost of college
11. Which Of The Following Is A Basic Characteristic Of 'Oligopoly'?
Few sellers, many buyers
Few sellers, few buyers
Many sellers, many buyers
12. What Effect Will A Decrease In Demand And An Increase In Supply Have On Equilibrium Price?
Equilibrium price will fall
Equilibrium price will be constant
Equilibrium price will rise
13. In India, Inflation Measured By The -
Wholesale Price Index Number
National Income Deflator
Consumer Price Index for urban non-manual workers
14. Which Of The Following Statements Is NOT Correct About The Factors That Gave Rise To The Consumer Movement In India?
Tax on soft beverages
Hoarding and Black Marketing
Frequent food shortages
15. One Of The Essential Conditions Of "Perfect Competition" Is
same price for same things at one time
product differentiation
many sellers and a few buyers