Principles of Microeconomics - Demand and Utility Quiz
Test your knowledge of microeconomics principles with questions on demand, utility, elasticity, and more in this quiz.
#1
Which of the following best describes the law of demand?
As price increases, quantity demanded increases.
As price decreases, quantity demanded decreases.
As price increases, quantity demanded decreases.
As price decreases, quantity demanded increases.
#2
What does the demand curve represent in microeconomics?
The relationship between quantity demanded and income.
The relationship between price and quantity demanded.
The relationship between price and quantity supplied.
The relationship between demand and supply.
#3
What is the law of demand in economics?
As quantity demanded increases, price increases.
As quantity demanded decreases, price decreases.
As price increases, quantity demanded decreases.
As price decreases, quantity demanded increases.
#4
Which of the following is a determinant of demand?
Price of the product itself
Price of related goods
Cost of production
Number of sellers in the market
#5
Which of the following factors can cause a shift in the demand curve?
Changes in price of the product itself.
Changes in consumer tastes and preferences.
Changes in the cost of production.
Changes in the number of producers in the market.
#6
What is the income effect in microeconomics?
The change in quantity demanded due to a change in income.
The change in demand due to a change in income.
The change in quantity supplied due to a change in income.
The change in price due to a change in income.
#7
What is the law of diminishing marginal utility?
As consumption of a good increases, its total utility decreases.
As consumption of a good increases, its total utility increases.
As consumption of a good decreases, its total utility decreases.
As consumption of a good decreases, its total utility increases.
#8
What is the difference between a change in quantity demanded and a shift in demand?
A change in quantity demanded is caused by a change in price, while a shift in demand is caused by a change in other factors.
A change in quantity demanded is caused by a change in other factors, while a shift in demand is caused by a change in price.
A change in quantity demanded and a shift in demand are the same thing.
A change in quantity demanded is caused by a change in income, while a shift in demand is caused by a change in price.
#9
What does the term 'utility' refer to in economics?
The satisfaction or pleasure derived from consuming a good or service
The price of a good or service
The quantity of a good or service demanded
The cost of production of a good or service
#10
In microeconomics, what does the concept of utility refer to?
The total satisfaction received from consuming a good or service.
The price paid for a good or service.
The quantity of a good or service demanded.
The total cost of producing a good or service.
#11
What does the concept of elasticity of demand measure?
The responsiveness of quantity demanded to a change in price.
The responsiveness of quantity supplied to a change in price.
The responsiveness of income to a change in price.
The responsiveness of price to a change in quantity demanded.
#12
If the price of a good increases and the quantity demanded decreases, what can we infer about the price elasticity of demand?
The demand is inelastic.
The demand is elastic.
The demand is unitary elastic.
The demand is perfectly elastic.
#13
What is consumer surplus?
The amount of money consumers save when buying goods on sale.
The difference between the price consumers are willing to pay and the price they actually pay.
The amount of money consumers spend on goods and services.
The total satisfaction received by consumers from consuming goods and services.
#14
What is the equilibrium price and quantity in a market?
The price and quantity where supply equals demand
The price and quantity where demand equals supply
The highest price consumers are willing to pay
The lowest price producers are willing to accept
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