#1
What does the law of demand state in microeconomics?
As price increases, quantity demanded decreases
ExplanationInverse relationship between price and quantity demanded
#2
Which of the following is NOT a factor of production in microeconomics?
Money
ExplanationNot directly involved in production process
#3
What is the opportunity cost?
The cost of the best alternative forgone
ExplanationValue of next best alternative
#4
Which of the following is a characteristic of a perfectly competitive market?
Numerous buyers and numerous sellers
ExplanationNo individual seller or buyer can influence the market
#5
What is price elasticity of demand?
The responsiveness of quantity demanded to changes in price
ExplanationMeasure of sensitivity of quantity demanded to price changes
#6
What is the formula for calculating price elasticity of demand?
Percentage change in quantity demanded / Percentage change in price
ExplanationMeasure of responsiveness of demand to price changes
#7
In microeconomics, what does the production possibility frontier represent?
The trade-off between two goods that can be produced efficiently
ExplanationLimit of production given available resources
#8
What is the difference between explicit and implicit costs in microeconomics?
Explicit costs involve monetary payments, while implicit costs do not
ExplanationTangible vs. opportunity costs
#9
In microeconomics, what does the term 'market equilibrium' refer to?
A situation where quantity demanded equals quantity supplied
ExplanationBalanced supply and demand
#10
Which of the following is NOT a determinant of demand in microeconomics?
Technology
ExplanationDoesn't directly affect demand
#11
Which of the following best describes the concept of marginal utility?
Total satisfaction derived from consuming one more unit of a good
ExplanationAdditional satisfaction from consuming one more unit
#12
What is the law of diminishing marginal returns in microeconomics?
As output increases, marginal product decreases
ExplanationDecrease in additional output with each additional unit of input
#13
What is consumer surplus in microeconomics?
The difference between the maximum price a consumer is willing to pay and the market price
ExplanationBenefit consumers receive from paying less than what they are willing to pay
#14
What is a monopoly in microeconomics?
A market structure with one seller and no close substitutes
ExplanationSingle seller with market control
#15
What is the concept of utility in microeconomics?
The total satisfaction derived from consuming a combination of goods
ExplanationMeasure of satisfaction from consuming goods or services