Microeconomics Quiz Question with Answer

21. The points located at the intersection of the budget line with the coordinate axes mean:

  1. the consumer does not spend all his income
  2. the consumer spends all his income for only one good
  3. the consumer spends absolutely nothing
  4. these are points impossible to reach by the consumer

22. The price of the product A was reduced from 100 to 90 lei and, as a result, the quantity demanded has increased from 70 to 75 units. The demand is:

  1. inelastic
  2. elastic
  3. unit elastic
  4. can not be determined from the given information

23. The total utility coincides with the marginal utility:

  1. for the first unit consumed
  2. only for the irrational consumer
  3. at the level of the last unit consumed
  4. at the saturation point

24. There are differences between monopolistic and perfect competition regarding:

  1. market entry
  2. the number of sellers and buyers
  3. the market power of competitors
  4. homogeneity of products

25. Which of the following statements are false?

  1. information, the entrepreneurs ability, technical progress are neo-factors of production
  2. according to the stages of the circular flow of the companys capital, it takes three forms money, capital goods and commodity
  3. fixed capital depreciation is only due to physical deterioration
  4. the factors of production are resources attracted and used in economic activity

26. Which of the following statements is false:

  1. perfect competition involves many sellers of standardized products
  2. monopolistic competition involves many sellers of homogeneous products
  3. the oligopoly involves several producers of standardized or differentiated products
  4. monopoly involves a single product for which there are no close substitutes

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