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