Econ Practice Test

Econ Practice Test - 1 Microeconomics is the study of a the economic behavior of individual decision making units b the economic behavior of

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
1. Microeconomics is the study of a. the economic behavior of individual decision making units b. the economic behavior of economic aggregates on a national scale c. how to save money 2. In the perfectly competitive market model, in long-run equilibrium, a) some firms produce higher a quality product than others. b) all firms produce a homogeneous product. c) each firm produces a different product. 3. In the perfectly competitive market model, in long-run equilibrium, a) each firm chooses the price at which its product sells. b) some firm earns larger profit than others c) no firm can influence the price at which its product sells. 4. In the perfectly competitive market model, in long-run equilibrium, a) each household chooses the price it will pay and quantity it will consume. b) by buying large quantities of the good, some consumers can pay less than. c) no household can influence the price that it must pay for the product. 5. In studying household and firm behavior under perfect competition we assume that a) households know of the quality and price of everything. b) firms have more information than households. c) government makes sure that households and firms have full information. 6. In studying household and firm behavior under perfect competition we assume that a) firms know of the quality and price of everything. b) households have more information than firms. c) government makes sure that firms have full information. 7. In the assumptions of perfect competition, the consume maximizes, a) income. b) wealth by buying large quantities of the good, some consumers can pay less than. c) utility. 8. In the assumptions of perfect competition, the firm maximizes, a) revenue from sales. b) the wealth of shareholders. c) profit. 9. Which of the following is not a characteristic of perfect competition? a) Only government certified firms can enter the industry b) Each firm in the industry is small relative to the size of the industry. c) Every firm produces the same product. 10. The quantity of a good or service demanded by a single household is not influenced by the: a) household's tastes and preferences. b) prices of other products available to the household. c) the number of firms that sell the product
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
11. The satisfaction that comes from all units consumed together by and individual is: a) total utility. b) marginal utility. c) a Macroeconomic concept. 12. The value to a consumer of an additional unit of a good, holding other things constant is a) marginal utility b) marginal rate of substitution. c) the budget line 13. The statement that the more of any one good consumed in a given period, the less satisfaction generated by consuming each additional unit of the good is the law of: a) diminishing total utility. b)
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 05/04/2008 for the course EC 201 taught by Professor Xasdf during the Spring '08 term at N.C. State.

Page1 / 8

Econ Practice Test - 1 Microeconomics is the study of a the economic behavior of individual decision making units b the economic behavior of

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online