Microeconomics Fundamentals for Business Chapter Exam

Exam Instructions:

Choose your answers to the questions and click 'Next' to see the next set of questions. You can skip questions if you would like and come back to them later with the yellow "Go To First Skipped Question" button. When you have completed the practice exam, a green submit button will appear. Click it to see your results. Good luck!

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Question 1 1. Assuming there are only two countries, Country A can produce 10 tons of wheat or 20 tons of rice, while Country B can produce 5 tons of wheat or 15 tons of rice. Which country has the highest opportunity cost for producing 1 ton of rice?

Question 2 2. The table here shows the labor hours necessary to produce one unit of two goods, salmon and coconut creme pies, in two countries. If labor is the only input used, which of the following statements is true?

Question 3 3. According to the Law of Comparative Advantage, where should a good be produced?

Question 4 4. Outward shifts (to the right) in the production possibilities curve will result in which of the following?

Question 5 5. Why does a monopoly-based system result in a negative business environment?

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Question 6 6. Investments in which of these do more to increase economic growth?

Question 7 7. All of the following can cause the supply curve to shift, EXCEPT:

Question 8 8. A person or nation that has a comparative advantage in the production of a good, should _____.

Question 9 9. If the price of printers increased by 10% and the quantity demanded of printer paper fell by 2%, what is the cross elasticity of demand equal and what does it tell us?

Question 10 10. If a new clothing brand becomes more popular because some recent movie stars endorsed the clothing line, how will it affect the market equilibrium for the clothing brand?

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Question 11 11. _____ is when the amount of goods or services sought by buyers is equal to the amount of goods or services produced by sellers.

Question 12 12. Ebay's success represents which of the following barriers to entry for another company in the same space?

Question 13 13. Which of the following statements regarding barriers to entry in economics is NOT true?

Question 14 14. Josie decided to go to college full-time instead of working. Which of the following is the opportunity cost of going to college for Josie?

Question 15 15. Which of the following best describes opportunity cost?

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Question 16 16. ____ can cause a new market equilibrium point to be created.

Question 17 17. Why is it often difficult to enter into a market that BEST resembles an oligopoly?

Question 18 18. Which of the following is NOT an inelastic demand for a product?

Question 19 19. Economics is best described as the study of:

Question 20 20. Because resources are scarce, but wants are not:

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Question 21 21. If a seller knows that the demand for his good or service is inelastic, then what would they most likely do?

Question 22 22. With the same amount of resources, Country A can produce 25 tons of chicken or 50 tons of wheat. What is Country A's opportunity cost of producing 1 ton of wheat?

Question 23 23. When demand for a product is greater than supply, a _____ exists and there is _____ pressure on prices.

Question 24 24. Assume that you have two hours to spend at the mall. You can either visit the bookstore or enjoy a movie at the theater. The opportunity cost of watching a movie is equivalent to which of the following?

Question 25 25. Scarcity means:

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Question 26 26. What happens if a nation doesn't have an absolute advantage in producing anything?

Question 27 27. According to the two production possibility curves shown, Country A should specialize in the production of which of the following?

Question 28 28. Economics looks at

Question 29 29. If the supply curve shifts to the left, what most likely happened?

Question 30 30. Provided that other factors remain the same, which of the following would shift an economy's production possibilities curve to the left?

Microeconomics Fundamentals for Business Chapter Exam Instructions

Choose your answers to the questions and click 'Next' to see the next set of questions. You can skip questions if you would like and come back to them later with the yellow "Go To First Skipped Question" button. When you have completed the practice exam, a green submit button will appear. Click it to see your results. Good luck!

NES Business Education (309): Practice & Study Guide  /  Business Courses
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