#1
Which of the following is a characteristic of a perfectly competitive market?
Many buyers and many sellers
Few sellers with differentiated products
One seller with significant market power
High barriers to entry
#2
In microeconomics, what does the law of demand state?
As price increases, quantity demanded increases
As price decreases, quantity demanded decreases
As price increases, quantity demanded decreases
As price decreases, quantity demanded increases
#3
What is the primary assumption of the production possibilities frontier (PPF) model?
Resources are unlimited
Resources are scarce
Opportunity cost is constant
Opportunity cost is zero
#4
Which of the following is an example of a positive externality?
Pollution from a factory harming nearby residents
A flu vaccination reducing the spread of illness in a community
A negative health impact due to smoking
Traffic congestion caused by too many cars on the road
#5
Which of the following is an example of a regressive tax?
Sales tax
Progressive income tax
Corporate income tax
Property tax
#6
Which of the following is a characteristic of a monopolistic competition market structure?
Many buyers and many sellers
One seller with significant market power
Few sellers with identical or similar products
High barriers to entry
#7
What is the formula for calculating price elasticity of demand?
Percentage change in quantity demanded / Percentage change in price
Percentage change in price / Percentage change in quantity demanded
Total change in quantity demanded / Total change in price
Total change in price / Total change in quantity demanded
#8
What is the formula for calculating total revenue?
Price × Quantity Demanded
Price / Quantity Demanded
Price - Quantity Demanded
Quantity Demanded / Price
#9
Which of the following is a characteristic of a natural monopoly?
Low barriers to entry
Multiple firms providing identical products
One firm with significant market power
Perfectly elastic demand curve
#10
Which of the following is a characteristic of a public good?
Rivalry in consumption
Excludability
Non-excludability
Private ownership
#11
Which of the following is a characteristic of an oligopoly market structure?
Many buyers and many sellers
Few sellers with identical or similar products
One seller with significant market power
High barriers to entry
#12
What is the formula for calculating marginal cost?
Change in Total Cost / Change in Quantity
Change in Quantity / Change in Total Cost
Total Cost / Quantity
Quantity / Total Cost
#13
Which of the following is a characteristic of a monopolistic monopoly market structure?
Many buyers and many sellers
One seller with significant market power
Few sellers with differentiated products
Low barriers to entry
#14
What is the formula for calculating average total cost?
Total Cost / Quantity
Total Cost / Total Output
Total Output / Total Cost
Quantity / Total Cost
#15
What does the term 'price discrimination' mean in microeconomics?
A firm charging different prices to different consumers for the same good or service
A firm reducing prices to attract more customers
A firm increasing prices to maximize profit
A firm charging a single price for all consumers