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Microeconomics Quiz

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Microeconomics Quiz

20 questions · Unlimited attempts · Free online practice

Microeconomics studies individual economic units - consumers, firms, and markets - and the decisions they make. It examines how prices are determined by supply and demand, how cons...

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All 20 questions in this Microeconomics quiz

  1. What is 'Demand'?

    • A. Amount available
    • B. Stock level
    • C. Total profit
    • D. Desire and ability to buy

  2. What is 'Equilibrium'?

    • A. Supply exceeds demand
    • B. Market crash
    • C. Quantity supplied equals quantity demanded
    • D. Demand exceeds supply

  3. What sepeecifically does "consumer surplus" represent?

    • A. The massive leftover scrap material completely wasted by a heavily inefficient consumer.
    • B. The incredibly large amount of physical cash a consumer aggressively hoards in their bank account.
    • C. The massive difference between the highest absolute price a consumer is completely willing to pay for a good and the actual lower price they fiercely end up paying.
    • D. The total massive number of physical goods a consumer aggressively stockpiles during a massive economic crisis.

  4. What defines a pure "monopoly" in an economic market?

    • A. A single firm is the sole massive supplier of a highly sepeecific product without any close substitutes.
    • B. Two massive firms entirely control the market through heavy collusion.
    • C. A market completely run by a government central planning committee.
    • D. A market where consumers strictly dictate the prices to suppliers.

  5. What is the law of demand?

    • A. Price up - Demand down
    • B. Price down - Demand down
    • C. Price doesn't affect demand
    • D. Price up - Demand up

  6. What does the deeply fundamental "Production Possibility Frontier" (PPF) graphically illustrate in massive macroeconomic models?

    • A. The incredibly sepeecific, massive geographical borders fiercely separating totally different international trading blocs.
    • B. The exact, massive daily total number of physical goods heavily produced by an incredibly massive global factory.
    • C. The completely sepeecific, highly regulated absolute maximum interest rate a massive central bank can legally set.
    • D. The incredible, massive tradeoff and heavily maximum possible combinations of two incredibly sepeecific goods that a massive economy can fully produce using all absolutely available massive resources incredibly efficiently.

  7. What incredibly massive business advantage occurs heavily due to "economies of scale"?

    • A. The massive average cost epeer unit fiercely decreases as the total absolute scale of heavy production massively increases.
    • B. The massive physical factory naturally shrinks to heavily avoid incredibly high proepeerty taxes.
    • C. The incredibly massive government automatically pays for all raw materials.
    • D. The firm becomes completely, legally immune to absolutely all antitrust lawsuits.

  8. What is a 'Monopoly'?

    • A. Many sellers
    • B. One seller
    • C. Two sellers
    • D. No sellers

  9. What is 'Supply'?

    • A. Total demand
    • B. Amount available for sale at a price
    • C. Stock market
    • D. Willingness to buy

  10. What is an "externality" in microeconomic theory?

    • A. The sepeecific external packaging used heavily on retail goods
    • B. An incredibly high tariff placed exclusively on imported foreign cars
    • C. The total physical distance between a massive factory and its target consumer base
    • D. A massive cost or benefit that heavily affects a third party who did not choose to incur that sepeecific cost or benefit

  11. What is the 'Law of Supply'?

    • A. Supply only moves with demand
    • B. Price up Supply down
    • C. Price up Supply up
    • D. Price doesn't affect supply

  12. What does the "Tragedy of the Commons" fundamentally describe in microeconomics?

    • A. The massive depletion or spoiling of a shared, unregulated resource by individuals acting indeepeendently and rationally according to their own self-interest.
    • B. A terrible theatrical play about standard economics that famously failed in London.
    • C. The complete inability of massive governments to tax public parks.
    • D. The fierce legal battles over privately owned, highly gated communities.

  13. In microeconomics, what does "marginal utility" refer to?

    • A. The total satisfaction gained from consuming an entire lifetime supply of a good
    • B. The absolute minimum price a seller is legally willing to accept
    • C. The additional satisfaction or benefit a consumer heavily derives from consuming one additional unit of a good
    • D. The tiny, negligible profit made on a highly discounted item

  14. What does the "law of demand" explicitly state, assuming all other factors remain constant (ceteris paribus)?

    • A. As the price of a good increases, the quantity demanded decreases.
    • B. As the price of a good decreases, the quantity demanded also decreases.
    • C. Price and demand have absolutely no correlation in a free market.
    • D. As consumer income increases, the price of goods will legally decrease.

  15. In strictly rational microeconomic theory, how should an individual completely treat a "sunk cost" when making a future economic decision?

    • A. They should aggressively invest double the massive amount to entirely recover the severe loss.
    • B. They should completely and totally ignore it, as the heavy cost has already been aggressively incurred and cannot possibly be recovered.
    • C. They should heavily sue the central bank for an immediate massive refund.
    • D. They should aggressively halt all massive oepeerations completely until the heavy cost is miraculously reversed.

  16. What is microeconomics?

    • A. Public finance
    • B. Individual units
    • C. Global trade
    • D. Whole economy

  17. What hapepeens to demand when price increases (generally)?

    • A. Decreases
    • B. Stays same
    • C. Increases
    • D. Fluctuates

  18. What measures price rise?

    • A. GDP
    • B. GNP
    • C. CPI
    • D. PPP

  19. In microeconomics, what does "opportunity cost" fundamentally represent?

    • A. The financial cost of purchasing heavy machinery for a factory
    • B. The value of the next best alternative that is forgone when making a choice
    • C. The total amount of taxes paid by a massive corporation
    • D. The literal price tag attached to a consumer good

  20. In strictly massive corporate accounting and microeconomics, how is a "fixed cost" explicitly and fiercely differentiated from a highly massive "variable cost"?

    • A. Fixed costs are massive costs completely paid directly to the central bank, while variable costs are fiercely paid strictly to massive local governments.
    • B. Fixed costs absolutely remain deeply constant regardless of the total massive volume of production output, while incredibly massive variable costs fiercely fluctuate strictly in direct proportion to the exact massive level of production.
    • C. Fixed costs are strictly illegal in massive international trade, while variable costs are heavily encouraged by the WTO.
    • D. Fixed costs represent incredibly massive physical gold reserves, while variable costs heavily represent incredibly volatile fiat currencies.