Principles of Microeconomics Final
Exam Practice Questions And
Answers
false - -Ceteris paribus means slopes down to the right (true or false)
-a - -Italy doesn't process enough bauxite to produce aluminum foil. This is
an example of
a. absolute scarcity
b. economic scarcity
-b - -All of the following are variables that affect the demand for a product
except
a. price of compliments
b. number of sellers
c. income of consumers
d. price of good x
-d - -Which of the following is not one of the categories of resources that
was given in class
a. capital
b. land
c. labor
d. production
e. entrepreneurship
-b - -The Law of Demand
a. tells us the price of a good cannot be sold above the legal maximum
b. tells us that when the price of a good increases, demand for the good
increases
c. tells us that a surplus of a good results in a store sale
d. tells us that producers can only sell products that have been obtained
legally
-d - -To decide how to use our scarce resources to satisfy economic wants,
our economy primarily relies on
a. planning
b. political voting
c. production targets
d. prices
-c - -Which of the following is not one of the reasons for the law of demand
holding true
, a. substitution effect
b. income effect
c. the law of diminishing returns
d. the law of diminishing marginal utility
-true - -Abstraction is necessary in economics because there are so many
variables to keep track of (true or false)
-false - -Microeconomics deals with the economic goals stability and equity
(true or false)
-b - -Every economy must answer four basic questions. Which of the
following is not one of them?
a. how much to produce
b. who is going to produce
c. who to produce for
d. how to produce
-c - -There are four investment opportunities available to a company with
excess cash to invest: an investment that pays 8%; 6%; 4%; and 2%. If the
company were to choose the 6% option, what would their opportunity cost
be?
a. 2%
b. 6%
c. 8%
d. 14%
-true - -This is an example of a positive statement: Students should come to
class every day (true or false)
-b - -Which of the following is consistent with the law of demand?
a. a decrease in the price of purses causes a decrease in the quantity of
purses demanded
b. an increase in the price of shoes causes a decrease in the quantity of
shoes demanded
c. an increase in the price of belts causes in increase in the quantity of belts
demanded
d. a decrease in the price of lipstick causes no change in the quantity of
lipstick demanded
-b - -Which expression is another way of saying marginal benefit
a. total benefit
b. extra benefit
c. loss
d. profit
Exam Practice Questions And
Answers
false - -Ceteris paribus means slopes down to the right (true or false)
-a - -Italy doesn't process enough bauxite to produce aluminum foil. This is
an example of
a. absolute scarcity
b. economic scarcity
-b - -All of the following are variables that affect the demand for a product
except
a. price of compliments
b. number of sellers
c. income of consumers
d. price of good x
-d - -Which of the following is not one of the categories of resources that
was given in class
a. capital
b. land
c. labor
d. production
e. entrepreneurship
-b - -The Law of Demand
a. tells us the price of a good cannot be sold above the legal maximum
b. tells us that when the price of a good increases, demand for the good
increases
c. tells us that a surplus of a good results in a store sale
d. tells us that producers can only sell products that have been obtained
legally
-d - -To decide how to use our scarce resources to satisfy economic wants,
our economy primarily relies on
a. planning
b. political voting
c. production targets
d. prices
-c - -Which of the following is not one of the reasons for the law of demand
holding true
, a. substitution effect
b. income effect
c. the law of diminishing returns
d. the law of diminishing marginal utility
-true - -Abstraction is necessary in economics because there are so many
variables to keep track of (true or false)
-false - -Microeconomics deals with the economic goals stability and equity
(true or false)
-b - -Every economy must answer four basic questions. Which of the
following is not one of them?
a. how much to produce
b. who is going to produce
c. who to produce for
d. how to produce
-c - -There are four investment opportunities available to a company with
excess cash to invest: an investment that pays 8%; 6%; 4%; and 2%. If the
company were to choose the 6% option, what would their opportunity cost
be?
a. 2%
b. 6%
c. 8%
d. 14%
-true - -This is an example of a positive statement: Students should come to
class every day (true or false)
-b - -Which of the following is consistent with the law of demand?
a. a decrease in the price of purses causes a decrease in the quantity of
purses demanded
b. an increase in the price of shoes causes a decrease in the quantity of
shoes demanded
c. an increase in the price of belts causes in increase in the quantity of belts
demanded
d. a decrease in the price of lipstick causes no change in the quantity of
lipstick demanded
-b - -Which expression is another way of saying marginal benefit
a. total benefit
b. extra benefit
c. loss
d. profit
