REVIEW QUESTIONS MICRO ECONOMICS ECN 501
CH. 01, 02, 03, 04
What is a brief definition of economics? What are the conditions that give rise to
Ans: It is the social science concerned with the efficient use of scarce resource
PRACTICE QUIZ CH. 02
1. Which statement best describes a command economy?
A. The production of goods and services is determined primarily by markets, but the allocation
of goods and services is determined primarily by government
B. The production of goods
1. What is an opportunity cost? How does the idea relate to the definition of economics? Which of the
following decisions would entail the greater opportunity cost: Allocating a square block in the heart of
Toronto for a surface parking lot or a
1. Explain why the choice between 1, 2, 3, 4, 5, 6, 7, and 8 units, or 1000, 2000, 3000, 4000, 5000,
6000, 7000, and 8000 movie tickets, makes no difference in determining elasticity in Table 4.1. LO 4.1
Answer: Price elasticity of demand is det
Multiple Choice: Choose the item that best answers each question. Each question is
worth an equal amount. You have 90 minutes to complete this test.
In which of the following instances will total revenue decline?
A) price rises and su
CHAPTER 5. Market Failures: Public Goods and Externalities
5.2 Efficiently Functioning Markets
The best way to understand market failure is to understand how properly functioning competitive
markets achieve economic efficiency. We touched on this subject
1. The two general types of economic systems that exist today are:
A. market systems and capitalism.
B. socialism and central planning.
C. market systems and command systems.
D. laissez faire systems and pure command systems.