#1
What is the law of demand in economics?
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 is the law of supply in economics?
As price increases, quantity supplied decreases
As price decreases, quantity supplied decreases
As price increases, quantity supplied increases
As price decreases, quantity supplied increases
#3
In economics, what is consumer surplus?
The difference between the highest price a consumer is willing to pay and the price they actually pay
The total value of all goods and services consumed by a consumer
The additional satisfaction gained from consuming one more unit of a good or service
The total amount of money a consumer is willing to spend on goods and services
#4
What is the law of diminishing marginal utility?
As the price of a good increases, the quantity demanded increases
As the quantity of a good consumed increases, the total utility also increases
As more of a good is consumed, the additional satisfaction from consuming one more unit decreases
As the quantity of a good consumed decreases, the marginal utility also decreases
#5
What is producer surplus in economics?
The difference between the lowest price a producer is willing to accept and the price they actually receive
The total value of all goods and services produced by a producer
The additional satisfaction gained from producing one more unit of a good or service
The total amount of money a producer receives from selling goods and services
#6
What is the formula for calculating total revenue?
Price x Quantity
Price / Quantity
Quantity / Price
Price + Quantity
#7
What causes a shift in the demand curve?
Change in price
Change in quantity supplied
Change in consumer preferences
Change in technology
#8
Which of the following is NOT a determinant of supply?
Technology
Taxes and subsidies
Consumer preferences
Resource prices
#9
What is a price ceiling in economics?
A legally established maximum price for a good or service
A legally established minimum price for a good or service
The price at which quantity demanded equals quantity supplied
The price at which consumers are willing to buy a good or service
#10
Which of the following is a characteristic of a perfectly competitive market?
Many buyers and sellers with differentiated products
Few buyers and sellers with similar products
One buyer and many sellers with differentiated products
Many buyers and sellers with identical products
#11
What is the price elasticity of demand formula?
Percentage change in quantity demanded / Percentage change in price
Percentage change in price / Percentage change in quantity demanded
Change in quantity demanded / Change in price
Change in price / Change in quantity demanded
#12
What is a price floor in economics?
A legally established maximum price for a good or service
A legally established minimum price for a good or service
The price at which quantity demanded equals quantity supplied
The price at which producers are willing to sell a good or service
#13
Which of the following is a determinant of price elasticity of demand?
The availability of close substitutes
The number of firms in the market
The cost of production
The level of government regulation
#14
In a monopolistic competition market structure, firms differentiate their products through:
Setting identical prices
Setting identical output levels
Product differentiation
Offering homogeneous products
#15
What is a complementary good in economics?
A good that is always in demand
A good that is unrelated to other goods
A good that is typically bought together with another good
A good that is a substitute for another good
#16
In economics, what is a normal good?
A good that is necessary for survival
A good for which demand decreases as income increases
A good for which demand increases as income increases
A good that is always in high demand
#17
Which of the following is a characteristic of a monopoly market structure?
Many buyers and sellers with similar products
One buyer and many sellers with differentiated products
Many buyers and sellers with identical products
One seller with no close substitutes
#18
What is a substitute good in economics?
A good that is unrelated to other goods
A good that is typically bought together with another good
A good that is always in demand
A good that can be used in place of another good
#19
Which of the following is NOT a characteristic of a perfectly competitive market?
Homogeneous products
Price control by individual firms
Free entry and exit of firms
Perfect information
#20
In economics, what is a luxury good?
A good that is necessary for survival
A good for which demand decreases as income increases
A good for which demand increases as income increases
A good that is always in high demand
#21
Which of the following is a characteristic of an oligopoly market structure?
Many buyers and sellers with identical products
One seller with no close substitutes
Few sellers with similar or identical products
One buyer and many sellers with differentiated products
#22
What happens to market equilibrium price and quantity when demand increases and supply decreases?
Price increases, quantity decreases
Price decreases, quantity decreases
Price increases, quantity increases
Price decreases, quantity increases
#23
What is the income elasticity of demand formula?
Percentage change in quantity demanded / Percentage change in income
Percentage change in income / Percentage change in quantity demanded
Change in quantity demanded / Change in income
Change in income / Change in quantity demanded
#24
What is the cross-price elasticity of demand formula?
Percentage change in quantity demanded of one good / Percentage change in price of another good
Percentage change in price of one good / Percentage change in quantity demanded of another good
Change in quantity demanded of one good / Change in price of another good
Change in price of one good / Change in quantity demanded of another good
#25
What is the formula for calculating elasticity of supply?
Percentage change in quantity supplied / Percentage change in price
Percentage change in price / Percentage change in quantity supplied
Change in quantity supplied / Change in price
Change in price / Change in quantity supplied