micro econ test 1
  • 1. what is economics?
A) the study of technology
B) the study of only businesses
C) the study of how societies use limited resources to meet unlimited needs
D) the study of money only
  • 2. what are basic needs?
A) things you want ,but are not essential
B) expensive things people buy for fun
C) items that government controls
D) the essential goods and services required for survival
  • 3. what are luxury goods?
A) items that only businesses produce
B) goods that everyone needs to survive
C) cheap goods found in most stores
D) expensive ,high quality that not essential for survival
  • 4. what is capital in economic?
A) man-mad resources used to produce goods and services
B) natural resources like water and land
C) money owned by individuals
D) human resources like effort and skills
  • 5. what is labor ?
A) the things people own
B) the money businesses make
C) the land where goods are produced
D) the effort of humans [physical and mental ]used in production
  • 6. what is entrepreneurship?
A) the study of government policies
B) the effort used in production
C) the ability to organize and manage a businesses while taking risk
D) the natural resources used to make goods
  • 7. what is microeconomics?
A) the analysis of government policies
B) the study of the entire national economy
C) the study of international trade
D) the study of individuals and businesses making decisions
  • 8. what is macroeconomics?
A) the study of the supply of money
B) the study of the economy at a national and global level
C) the study of individual businesses
D) the study of consumer behavior only
  • 9. what is the free enterprise system?
A) a system where private individuals own resources and make decisions with little government interference
B) a government run economy
C) an economy where the government controls all businesses
D) a system where businesses are not allowed to compete
  • 10. what is the right to private property?
A) the right to live anywhere in the country
B) the right to own,control and transfer resources without interference from the government
C) the right to only own land
D) the right to sell goods freely
  • 11. the is the primary focus of economics?
A) the study of money supply
B) the study of how societies allocate limited resources to satisfy unlimited wants and needs
C) the study of government policies
D) the study of technology
  • 12. the cobb douglas production function is used to measure ;
A) demand and supply
B) inputs and output
C) consumer preferences
D) profit and loss
  • 13. what type of buyer is most likely to engage in purchasing products from online platforms like amazon or flipkart after receiving special discounts?
A) one time buyer
B) ethical conscious buyers
C) discount-oriented buyers
D) impulse buyers
  • 14. what does the law of diminishing returns state?
A) adding more workers always increase output at the same rate
B) the total output will always increase as long as resources are available
C) as more of one input is added , the additional output will eventually decrease
D) output decrease as fewer workers are added
  • 15. which technological advancement became crucial in 2015-2020 for optimizing content trough voice assistant like siri and alexa ?
A) ar/vr experiences
B) ai chatbots
C) social media advertising
D) voice search
  • 16. what is labor ?
A) the money businesses make
B) physical and mental used in production
C) the land where goods are produced
D) things people own
  • 17. what are basic needs ?
A) wants that are only important to businesses
B) non essential wants that can be purchased with extra income
C) expensive products that provide comport and prestige
D) the essential goods and services required for human and well being
  • 18. what are luxury goods ?
A) goods that are affordable for most people
B) goods that are produced by government intervention
C) high quality ,expensive products that are desired for comport ,prestige ,or status
D) goods that essential for survival
  • 19. which of the following is NOT a factor of production ?
A) capital
B) land
C) money
D) labor
  • 20. which factor of production refers to human effort [physical and mental ]used in the production of goods and services ?
A) land
B) entrepreneurship
C) labor
D) capital
  • 21. consumer tend to buy more products when ;
A) it is hard to find
B) it is not advertised
C) the price goes down
D) the price goes up
  • 22. when company can adjust all inputs ,this is called?
A) shutdown period
B) fixed period
C) short run
D) long run
  • 23. in the short run ,at least one input is ?
A) always increasing
B) variable
C) fixed
D) unimportant
  • 24. law of diminishing marginal utility states that as consumption increase ,added
A) decreases
B) bouble
C) increase
D) stays the same
  • 25. consumer make decisions to maximized their ;
A) expenses
B) effort
C) losses
D) satisfaction
  • 26. if the company doubles its input and output less than doubles ,this is called ?
A) increasing return to scale
B) no returns to scale
C) constant returns to scale
D) decreasing returns to scale
  • 27. the budget constraint means that consumers
A) never think about money when buying
B) must choose how to spend their money
C) can buy limited products
D) prefer expensive products
  • 28. what are the four factors of production ?
A) cost ,price ,profit ,loss
B) water ,fire air, earth
C) income ,output, demand ,supply
D) land ,labor ,capital, entrepreneurship
  • 29. what is giffen good?
A) a good where demand increase as price increase
B) a luxury brand item
C) a substitute good
D) a product that always follows the law of demand
  • 30. which of the following best describes businesses purchasing products for commercial use in bulk ?
A) businesses buyers (B2B buyers)
B) social media -influenced buyers
C) ethical /conscious buyers
D) impulse buyers
  • 31. which of the following best describe elastic demand (PED>1)?
A) consumers respond very little to price changes
B) consumer responds significantly to price changes
C) the demand curve is perfectly vertical
D) the quantity demanded does not change with price changes
  • 32. what is the relationship between the price elasticity demand (PED) and the total revenue for elastic demand ?
A) price changes does not effect total revenue
B) price increase leads to lower total revenue
C) total revenue is maximized when PED is equal to 1
D) price increase leads to higher total revenue
  • 33. in utility theory ,what does marginal utility (MU)refer to?
A) the satisfaction derived from all purchase
B) the additional satisfaction from consuming one more unit of a product
C) the total satisfaction from consuming a product
D) the total satisfaction from consuming a specific good
  • 34. what is the term for resources used to produce a goods and services ?
A) economic resources
B) goods and services
C) land
D) capital
  • 35. if the price of a goods increase and the quantity demanded decrease significantly ,which type elasticity is it?
A) perfectly elastic demand
B) unitary elastic demand
C) inelastic demand
D) elastic demand
  • 36. when does "income elasticity of demand " refer to ?
A) the responsiveness of demand for a goods
B) the way supply responds to changes in income
C) the relationship between price and quantity demanded
D) how income effects the supply of labor
  • 37. what is the main difference between microeconomics and macroeconomics ?
A) microeconomics focuses on individuals and businesses while macro economics looks at the overall economy
B) they are essentially the same ,just different terms
C) microeconomic focuses on government policies ,while macroeconomics focuses on structures
D) microeconomics focuses on individuals and businesses ,while macroeconomics looks at the overall economy
  • 38. which factor of production refers to human effort (physical and mental )used in the production of goods and services ?
A) entrepreneurship
B) land
C) capital
D) labor
  • 39. which of the following is an example of inelastic demand ?
A) medicine
B) electronics
C) clothing
D) luxury cars
  • 40. what does e-commerce primarily refer to?
A) transactions related to government services
B) in person retail transaction
C) the buying and selling of goods and services over the internet
D) businesses to businesses networking
  • 41. which of the following is not on e of the four factors of production?
A) entrepreneurship
B) labor
C) land
D) money
  • 42. what does empirical validation refer to in economics ?
A) testing theories using world data
B) the use of historical data in theory formation
C) the analysis of financial data only
D) theoretical assumption made without evidence
  • 43. loss aversion is a concept in behavioral economics which suggest that;
A) people make choices solely one benefits
B) people are indifferent between gains and losses
C) people make decisions based on logical analysis
D) people fear losing more than enjoy gaining
  • 44. what is entrepreneurship ?
A) manage businesses while taking risks
B) the study of government policies
C) the effort used in production
D) the natural resources used to make goods
  • 45. what is labor ?
A) the land where goods are produced
B) the things person own
C) physical and mental used in production
D) the money businesses make
  • 46. which of the following goods is most likely to have elastic demand ?
A) luxury goods like designer bags
B) gasoline
C) salt
D) life saving medicine
  • 47. what major concerns in digital marketing is driving marketers to focus on data practices ?
A) video marketing
B) content saturation
C) data privacy and security influencer marketing
  • 48. which of the following is a trend for the future that allows for more personalized and engaging experiences using technology ?
A) interactive and immersive content
B) social media advertising
C) print marketing
D) email campaigns
  • 49. inelastic demand occurs when;
A) the good has high production costs
B) the good is a necessity with few substitute
C) the goods is expensive to income
D) there are many substitute available for the good
  • 50. engles law states that ;
A) spending on luxuries increase while spending on necessities remains the same
B) spending on both necessities and luxuries decrease as income rises
C) as income rises ,spending on necessities increase
D) as income fails , spending on luxuries increase
  • 51. which of theses is most likely to have inelastic demand ?
A) airline tickets
B) concert tickets
C) salt
D) luxury cars
  • 52. which of the following is an example of a luxury good ?
A) bread
B) water
C) medicine
D) designer watches
  • 53. if PED is less than 1 ,what type of demand does the production have?
A) elastic demand
B) inelastic demand
C) perfectly elastic demand
D) unitary elastic demand
  • 54. what is the main idea of utility theory (rational choice theory )?
A) consumer aims to maximize their satisfaction within their budget
B) consumer select combinations of goods that provide the same utility
C) consumers make decisions based one emotions and biases
D) consumer react to losses more strongly than gains
  • 55. what is an example of a perfectly inelastic demand ?
A) luxury goods
B) airline ticket
C) salt
D) life saving medicine
  • 56. which of the following products is likely to have elastic demand ?
A) electricity
B) water
C) salt
D) luxury goods
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