Microeconomics - Test Test

Question 1

Based on the graph, which event could cause the change shown?

Revolt · Accepted Answer

B: A product becomes less popular and fewer customers purchase it.

Question 2

This chart shows the link between

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C: amount of a product and the price a consumer pays.

Question 3

This graph demonstrates how

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D: the amount produced greatly changes with the price.

Question 4

What most likely will happen if the pie maker continues to make additional pies?

Revolt · Accepted Answer

D: The marginal costs will continue to rise, increasing the total cost, while the marginal revenue remains the same, decreasing the profit earned for each pie.

Question 5

The Davis family grows organic vegetables to sell at a local farmer’s market. Which are factors that directly affect their profit? Choose three correct answers.

Revolt · Accepted Answer

A: an increase in customers at the market; C: an increase in the cost of farm equipment; E: a rise in demand for organic produce

Question 6

When supply is higher than demand, prices will

Revolt · Accepted Answer

D: fall until the demand rises.

Question 7

Which statements correctly explain price floors and price ceilings? Choose four correct answers.

Revolt · Accepted Answer

A: Price ceilings help consumers by lowering prices.; C: Effective price ceilings are set below equilibrium.; D: Effective price floors are set above equilibrium.; F: Price floors help producers by raising prices.

Question 8

Brenda’s Boards manufactures skateboards. Each skateboard sells for $45 and includes the following expenses: $3 for the wheels and mounts, $1 for the plastic board, $1 for the paint, and $10 for the labor. What is the total profit the company earns after selling 100 boards?

Revolt · Accepted Answer

C: $3,000

Question 9

In economics, if a good is inelastic,

Revolt · Accepted Answer

C: its supply or demand is not sensitive to price changes.

Question 10

The point of maximum profit is the point at which the marginal cost equals the

Revolt · Accepted Answer

B: marginal revenue.

Microeconomics - Test Test Answers

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