#1
Which of the following is NOT a characteristic of a perfectly competitive market?
Many buyers and sellers
Homogeneous products
Barriers to entry
Perfect information
#2
What does the term 'opportunity cost' refer to in economics?
The total cost incurred in a business venture
The cost of alternative options foregone when a decision is made
The total fixed costs of production
The total variable costs of production
#3
In the context of microeconomics, what is 'marginal utility'?
The total satisfaction derived from consuming a good or service
The additional satisfaction gained from consuming one more unit of a good or service
The average satisfaction derived from consuming a good or service
The minimum satisfaction required for a good or service to be purchased
#4
What is the formula for calculating total revenue in economics?
Price * Quantity Demanded
Price * Quantity Supplied
Quantity Demanded / Price
Quantity Supplied / Price
#5
What is the 'invisible hand' concept in economics?
The idea that government intervention is necessary to regulate markets
The concept that self-interest and competition can lead to economic prosperity
The process of centrally planning an economy
The principle that individuals should prioritize social welfare over personal gain
#6
What is the law of demand in microeconomics?
As price increases, quantity demanded decreases
As price increases, quantity demanded increases
As price decreases, quantity demanded decreases
As price decreases, quantity demanded increases
#7
In microeconomics, what does the term 'elasticity' measure?
The responsiveness of quantity demanded to a change in price
The total revenue generated by a firm
The cost of production for a firm
The government's influence on market prices
#8
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
Percentage change in quantity demanded * Percentage change in price
Percentage change in price * Percentage change in quantity demanded
#9
What is the main assumption of the production possibility frontier (PPF) model?
Resources are fixed and fully employed
Resources are infinite
Opportunity cost is constant
There are no trade-offs in production
#10
Which of the following is an example of a positive externality?
Pollution from a factory
Education benefits from an educated workforce
Noise pollution from construction
Healthcare costs from smoking
#11
What does the law of diminishing marginal returns state?
As more units of a variable input are added to fixed inputs, the marginal product of the variable input initially increases and then decreases.
As more units of a variable input are added to fixed inputs, the marginal product of the variable input remains constant.
As more units of a variable input are added to fixed inputs, the total product of the variable input increases at an increasing rate.
As more units of a variable input are added to fixed inputs, the total product of the variable input remains constant.
#12
What is the formula for calculating price elasticity of supply?
Percentage change in quantity supplied / Percentage change in price
Percentage change in price / Percentage change in quantity supplied
Percentage change in quantity supplied * Percentage change in price
Percentage change in price * Percentage change in quantity supplied
#13
Which of the following is a characteristic of a monopolistically competitive market structure?
Many buyers and sellers
Homogeneous products
Significant barriers to entry
Product differentiation
#14
What is the 'Laffer curve' in economics?
A curve showing the relationship between government spending and economic growth
A curve showing the relationship between inflation and unemployment
A curve showing the relationship between tax rates and government revenue
A curve showing the relationship between interest rates and investment
#15
In microeconomics, what does the term 'perfect price discrimination' refer to?
A situation where firms can perfectly predict consumer behavior
A situation where firms charge different prices based on the consumer's willingness to pay
A situation where firms charge the same price for all units of a good or service
A situation where firms collude to set prices
#16
Which of the following is an example of a perfectly elastic demand?
Gasoline in the short run
Luxury cars
A unique artwork
A perfectly competitive market
#17
What is the formula for calculating consumer surplus?
Total revenue - Total cost
Total cost - Total variable cost
Total utility - Total cost
Total benefit - Total cost
#18
What is the main difference between a cost-benefit analysis and a cost-effectiveness analysis?
A cost-benefit analysis compares the costs and benefits of different alternatives, while a cost-effectiveness analysis determines the most cost-efficient way to achieve a specific goal.
A cost-benefit analysis focuses only on the costs, while a cost-effectiveness analysis considers both costs and benefits.
A cost-benefit analysis is used for short-term decisions, while a cost-effectiveness analysis is used for long-term decisions.
A cost-benefit analysis is used in microeconomics, while a cost-effectiveness analysis is used in macroeconomics.