Microeconomics Overview 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. Why are prices in a market economy considered to be efficient?

Question 2 2. What is the equilibrium point?

Question 3 3. Human capital refers to which of the following?

Question 4 4. Which of the following is NOT a determinant of the productivity of a nation?

Question 5 5. Why does the market structure of the United States MOST resemble monopolistic competition?

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Question 6 6. Why does a monopoly-based system result in a negative business environment?

Question 7 7. Which of the following are two general broad categories regarding economic incentives?

Question 8 8. Which of the following is not an economic incentive?

Question 9 9. Scarcity means:

Question 10 10. Because resources are scarce, but wants are not:

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Question 11 11. The ideas and emotional drive a person has to produce something that other people will want to buy describes which factor of production?

Question 12 12. The physical effort of people to produce goods or services describes which factor of production?

Question 13 13. What do you call a primarily decentralized economy?

Question 14 14. Which of the following is NOT true regarding types of economic systems?

Question 15 15. Which business entity affords its owner(s) the limited liability benefits of a corporation and the flexibility of a general partnership?

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Question 16 16. Some business organizations are created as 'flow-through entities.' Others can elect for this type of arrangement. Which of the following best describes a 'flow-through entity'?

Question 17 17. An increase in household incomes across the nation leads to an increase for the demand for coffee. How would the demand/supply curve change?

Question 18 18. The market for coffee is currently in equilibrium. If the demand for coffee decreases, which of the following would LEAST likely happen?

Question 19 19. _____ refers to the difference between the market value of an asset and the amount you owe on that asset.

Question 20 20. Which of the following assets offers the MOST liquidity?

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Question 21 21. One of the earliest examples of the division of labor is:

Question 22 22. This development made the division of labor possible:

Question 23 23. 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 24 24. During the time Mary spent studying macroeconomics, she could have instead either made brownies or played the piano. She thinks to herself that if she wasn't studying, then she would have made brownies. In this case, her opportunity cost of studying is equal to which of the following?

Question 25 25. It takes Joan 1 hour to make a pizza and 2 hours to make a cake. Joan's opportunity cost of making a pizza is which of the following?

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Question 26 26. 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 27 27. Prices are neutral because:

Question 28 28. Which of the following will most likely occur as a result of an increase in labor productivity?

Question 29 29. Which of the following best describes a free market?

Question 30 30. What's the opposite of an economic incentive?

Microeconomics Overview 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!

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