AnswersEconomicsMicroeconomics

Practice Test Answers

12 verified answers
1
Free Preview

Which quality best describes a producer with an absolute advantage?

A
fast
B
efficient
C
prolific
D
accurate
2
Free Preview

Motherboards, Inc., manufactures computer parts. The company’s total revenue is

A
the total wages the company pays workers in its factories and stores.
B
the amount the company receives from the sale of all of its computer parts.
C
the money the company earns after paying all of its production costs.
D
the amount of money the company earns from selling an individual part.
3

A monopoly is a market that has

A
few competing businesses.
B
a single supplier of a good or service.
C
many sellers of a variety of products.
D
many sellers of the same item.
4

A possible result of disequilibrium is

A
stable availability.
B
lower demand.
C
excess demand.
D
fixed prices.
5

Equilibrium occurs when supply and demand coordinate to

A
maintain excess supply.
B
raise prices and production.
C
set prices and production.
D
set excess demand.
6

Which statement best explains the role of producers in economics?

A
Producers sell shares for companies in the market.
B
Producers purchase goods and services.
C
Producers supply goods and services.
D
Producers create theories about the market.
7

When prices drop below the point where supply and demand meet, it results in

A
equilibrium.
B
disequilibrium.
C
coordination.
D
production.
8

What does elasticity measure in economics?

A
how the amount of a good changes when the producer uses new materials
B
how the amount of a good changes when its price goes up or down
C
how the amount of a good changes when the producer hires more employees
D
how the amount of a good changes when its distribution expands
9

A clothing store has ordered a new supply of jeans for the fall season and wants to sell off the remaining items from the previous spring. What action would the store owner most likely take?

A
The store owner would most likely lower the price of the spring jeans to encourage consumers.
B
The store owner would most likely raise the price of the spring jeans to encourage consumers.
C
The store owner would most likely raise the price of the spring jeans to encourage producers.
D
The store owner would most likely lower the price of the spring jeans to encourage producers.
10

Why are utilities, such as electricity and water, examples of natural monopolies?

A
There is no need for alternative options.
B
The cost of production restricts competition in the market.
C
Consumers only trust known companies to provide these essentials.
D
There are limited natural resources to meet demand.
11

Which food truck has the absolute advantage?

A
Kimchi Kim’s
B
Deli Delight
C
Lunch on the Go
D
Frank’s Falafels
12

According to the graph, the marginal cost begins to increase when the producer makes

A
five pies.
B
two pies.
C
three pies.
D
four pies.

Did you find these answers helpful?

More from this Course

practice test
18 verified answers

Practice Test

practice test
14 verified answers

Practice Test

practice test
13 verified answers

Practice Test