Microeconomics Quiz

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Flashcards	36
Language	English
Category	Macro-Economics
Level	University
Created / Updated	01.07.2021 / 02.07.2021
Licencing	Not defined
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Which-one of the following statements is correct?

The market equilibrium is an important concept in the market model. It is defined as the condition in which the quantity offered for sale at a given price equals the quantity demanded at that price.

In the market model, the own-price and quantity are called exogenous variables because they are determined inside the market model.

The analysis of one market only, taking exogenous variables a given, is referred to as a general equilibrium analysis.

Which-one of the following statements is correct?

A unit price below the market equilibrium leads to excess supply which, in turn, leads to an increase in the unit price, establishing market equilibrium.

A unit price above the market equilibrium leads to excess supply which, in turn, leads to an increase in the unit price, establishing market equilibrium.

A unit price below the market equilibrium leads to excess demand which, in turn, leads to an increase in the unit price, establishing market equilibrium

Which-one of the following statements is correct?

If the wage decreases by 2

the quantity supplied decreases by 20.

the supply curve shifts to the right.

the supply curve shifts to the left.

Which-one of the following statements is correct?

Jane and Robert both have identical bundles of good A and good B, however they are NOT on the same indifference curve. The marginal rate of substitution MRS_A for _B for Jane is 4, whereas the MRS_A for B for Robert is 0.4 . They both agree to exchange one unit of A for one unit of B.

Which of the following statements is correct?

If Jane gives to Robert one unit of A in exchange for one unit of B, they will, as a result, both end up on a higher-ranking indifference curve.

If Jane gives to Robert one unit of B in exchange for one unit of A, she will, as a result, end up on a higher-ranking indifference curve. Robert, however, will stay on the original indifference curve.

If Jane gives to Robert one unit of B in exchange for one unit of A, they will, as a result, both end up on a higher-ranking indifference curve.

Which-one of the following statements is correct?

A business operating under the conditions of perfect competition will maximize its profit where ...

the marginal cost curve intersects with the average variable cost curve.

where marginal cost, i.e. the increment in total cost due to the production of another unit, equals the market price, i.e. marginal revenue.

None of the above.

Which-one of the following statements is correct?

is a loss of surplus due to a market inference. The loss of surplus however is transferred from the seller to the buyer.

describes a transfer of surplus from the buyer to the seller due to price interference.

is a loss of surplus due to market interference. The surplus is altogether lost, and is transferred to neither the buyer nor the seller.

Which-one of the following statements is correct?

In the short run, a business operating under the conditions of monopolistic competition will maximize its profit where ...

the marginal cost curve intersects with the average variable cost curve.

where marginal cost, i.e. the increment in total cost due to the production of another unit, equals marginal revenue.

where marginal cost, i.e. the increment in total cost due to the production of another unit, equals the market price, i.e. marginal revenue.

Which-one of the following statements is correct?

In the short run, a business operating under the conditions of monopolistic competition will charge a unit price which is below the unit price consistent with perfect competition.

In the short run, a business operating under the conditions of monopolistic competition is highly likely to earn an economic profit.

None of the above.