Principles of Microeconomic Analysis Quiz
Test your knowledge on microeconomic analysis principles. Explore topics like perfect competition, monopoly, oligopoly, and market structures.
#1
Which of the following is not a characteristic of perfectly competitive markets?
Homogeneous products
Many buyers and sellers
Firms are price makers
No barriers to entry or exit
#2
Which of the following is not a determinant of supply?
Technology
Taxes
Consumer preferences
Expectations
#3
Which of the following is not a characteristic of monopolistic competition?
Firms are price takers
Many sellers
Differentiated products
Low barriers to entry or exit
#4
What is the formula for the price elasticity of demand (PED)?
PED = (change in quantity demanded) / (change in price)
PED = (change in price) / (change in quantity demanded)
PED = (average quantity demanded) / (average price)
PED = (total quantity demanded) / (total price)
#5
What is the definition of a market in microeconomics?
A physical location where goods and services are exchanged
An economic system that determines the price and quantity of goods and services
A group of buyers and sellers of a particular good or service
An area where people buy and sell goods and services
#6
What is the price elasticity of demand (PED) for a perfectly inelastic demand?
Zero
Less than zero
Greater than one
Less than one
#7
What is the equation for the marginal cost (MC) curve in a perfectly competitive market?
MC = AVC + AFC
MC = MR + AVC
MC = P + MR
MC = MR
#8
What is the price elasticity of demand (PED) for a perfectly elastic demand?
Infinity
Zero
Greater than one
Less than one
#9
What is the equation for the average fixed cost (AFC) curve in a perfectly competitive market?
AFC = FC/Q
AFC = VC/Q
AFC = P/Q
AFC = P/FC
#10
What is the price elasticity of supply (PES) for a perfectly elastic supply?
Infinity
Zero
Greater than one
Less than one
#11
Which of the following is a characteristic of a monopoly?
Many buyers and sellers
Homogeneous products
One seller
Price taker
#12
What happens to a monopoly's profits in the long run?
They increase
They decrease
They remain constant
They become negative
#13
Which of the following is not a characteristic of an oligopoly?
Firms are price takers
Few sellers
Homogeneous or differentiated products
Barriers to entry or exit
#14
What happens to the number of firms in an oligopoly when there is a merger?
It increases
It decreases
It remains the same
It becomes zero
#15
Which of the following is a characteristic of a natural monopoly?
Many sellers
Differentiated products
One seller
Low barriers to entry or exit
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