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