Copyright
TECEP Microeconomics: Study Guide & Test Prep  /  Business Courses

Test Prep Plan - Take a practice test

Take this practice test to check your existing knowledge of the course material. We'll review your answers and create a Test Prep Plan for you based on your results.
How Test Prep Plans work
1
Answer 50 questions
Test your existing knowledge.
2
View your test results
Based on your results, we'll create a customized Test Prep Plan just for you!
3
Study smarter
Study more effectively: skip concepts you already know and focus on what you still need to learn.

Theories & Trends in Microeconomics 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!

Page 1

Question 1 1. A situation where one party knows information that the other party does not is called:

Question 2 2. What kind of products might be selected due to one party not having all of the information?

Question 3 3. What kind of consumer buys products during adverse selection?

Question 4 4. Which is an example of adverse selection?

Question 5 5. What do moral hazard and adverse selection have in common?

Page 2

Question 6 6. When a buyer purchases bad goods because they do not have all of the correct information, what has occurred?

Question 7 7. When an individual partakes in risky behavior because they are protected, what have they been apart of?

Question 8 8. A person who drives a car recklessly because they have insurance is an example of what?

Question 9 9. What is an example of the political economy you might see in your daily life?

Question 10 10. Can local level political economy affect the world?

Page 3

Question 11 11. What has political economy evolved into?

Question 12 12. Why is global trade more complex than trading in the same country?

Question 13 13. The type of economics that studies irrational behavior or decisions is known as _____?

Question 14 14. Which one is NOT a trait of neoclassical economics?

Question 15 15. Skipping work and going on a shopping spree is an example of what type of behavior?

Page 4

Question 16 16. Who disagreed with neoclassical economics and helped develop behavioral economics?

Question 17 17. When a company hires a lawyer, who is the agent?

Question 18 18. Who sometimes ignores the best interest of the principal during a principal-agent problem?

Question 19 19. Who are the two players in a principal-agent problem?

Question 20 20. In the example of stockholders hiring managers to take care of their profits, money, shares, etc, who is the principal?

Page 5

Question 21 21. Which of the following is an example of a preference?

Question 22 22. What is the term used by economists that refers to the reality that each consumer has limits?

Question 23 23. Define optimization.

Question 24 24. What can economists assume about consumers?

Question 25 25. What would explain why a consumer prefers good 1 to good 2, and prefers good 2 to good 3 and thus should prefer good 1 to good 3?

Page 6

Question 26 26. Cindy buys five pairs of shoes and is very happy with her purchase. Even though she has many shoes, she thinks about buying more the next week. How would economists describe Cindy's desire to keep shopping?

Question 27 27. How is the total satisfaction of consuming a good or service described?

Question 28 28. Frank goes to the Honda dealership to look for a new car. Not satisfied, he then goes to the Subaru dealership to view their inventory. How would an economist define the fact that Frank prefers Subarus over Hondas?

Question 29 29. When undesired results occur on the basis of asymmetric information, what has happened?

Question 30 30. When someone makes a decision without all of the information that leads to an undesirable result, they have just been involved in what?

Theories & Trends in Microeconomics 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!

Support