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Econ Practice Test

Econ Practice Test - 1 Microeconomics is the study of a the...

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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, 8. In the assumptions of perfect competition, the firm maximizes, 9. Which of the following is not a characteristic of perfect competition? 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
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11. The satisfaction that comes from all units consumed together by and individual is:
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