Basic Microeconomics

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JANPAUL

Quiz1
The category of "land" includes all natural resources wherein these natural resources include the land
itself, as well as any minerals, oil deposits, timber, or water that exists on or below the ground.
Select one:
True

This is the production of a good if the individual can produce the good at the lowest opportunity cost.
Select one:
Comparative advantage

This individual trade goods or services for money and then use this money to buy the goods or services
that they wish to acquire.
Select one:
Monetary economy

This is the production of a good if the individual can produce more than the other individuals.
Select one:
Absolute advantage.

It refers to the ability to organize production and bear risks.

Select one:
Entrepreneurial ability

This is the rate at which the currency of one country is converted into the currency of another country.
Select one:
Exchange rate

Stocks, bonds, and other financial assets are examples of capital/ resources.
Select one:
False

Self-interested people may donate their time to charitable organizations, give gifts to loved ones,
contribute to charities and engage in other similarly altruistic activities.
Select one:
True

These are markets that demand for a product includes both domestic and foreign demand.
Select one:
International markets
Goods that are used to produce other goods or services are called economic growth and are also known
as inputs or factors of production.
Select one:
False

Quiz2
He developed an analysis of the moral system (The Theory of Moral Sentiments), then an economic
system (The Wealth of Nations).
Select one:
Adam Smith

He was the successor to Walras at the University of Lausanne whose name has been associated with the
basic criteria used as a measure of efficiency.
Select one:
Pareto

This may be used as a tool to aid in the decision making process.

Select one:
Microeconomics

He is an English philosopher who laid the foundation for British Utilitarian microeconomics in his
Introduction to the Principles of Morals and Legislation.
Select one:
Jeremy Bentham
They are often regarded as the first important contributors to Western culture.
Select one:
Greeks

He began his Republic with an economic interpretation of history wherein he begins by seeking the
meaning of justice.
Select one:
Plato

His influence on the development of microeconomics is through the work of Leon Walras.
Select one:
Cournot

He is largely responsible for the simplification of Bentham's utilitarian philosophy as is has come to be
used as a foundation for mainstream microeconomics.
Select one:
Jevons

This studied human activities involved with "wealth-getting" which could be unnatural as well as natural.
Select one:
Chrematistiks
He draws an analogy between the Principles of Maximum Energy and the Principles of Greatest
Happiness.
Select one:
Francis YsidroEdgeworth

Prelim

They produce goods and services using inputs, such as labor, land, and capital (buildings
and machines).

Select one:

a. Firms 

b. Production possibilities frontier

c. Circular-flow diagram

d. Households

This is the inverse relationship exists between the price of a good and the quantity
demanded in a given time period, ceteris paribus.

Select one:

a. Coase

b. Opportunity cost

c. Law of demand 

d. Economics

Goods that are used to produce other goods or services are called _______ and are also
known as inputs or factors of production.

Select one:

a. International markets
b. Economics Resources 

c. Capital/ resources

d. Land

_______ people may donate their time to charitable organizations, give gifts to loved ones,
contribute to charities and engage in other similarly altruistic activities.

Select one:

a. Oikonomiks

b. Self-interested 

c. Microeconomics

d. Greeks

This is when making choices wherein this means that

Select one:

a. Scarcity

b. Marginal cost

c. Rational self-interest 

d. Relative price

Households and firms interact in two types of markets. In the markets for goods and
services, _______ are buyers and _______ are sellers.

Select one:

a. Plato

b. Outcome
c. Households, firms 

d. Firms

This implies the existence of tradeoffs wherein these tradeoffs can be illustrated quite nicely
by a production possibilities frontier.

Select one:

a. Scarcity 

b. Relative price

c. International markets

d. Complementary goods

_______ is an English philosopher, laid the foundation for British Utilitarian microeconomics in
his Introduction to the Principles of Morals and Legislation.

Select one:

a. Adam Smith

b. Utilitarian

c. Jeremy Bentham 

d. Chrematistiks

Economists say that these goods are the increase in the price of one result in a reduction in
the demand for the other.

Select one:

a. Relative price

b. International markets

c. Complementary goods 
d. Scarcity

This _______ may be used as a tool to aid in the decision making process.

Select one:

a. Greeks

b. Oikonomiks

c. Self-interested

d. Microeconomics 

_______ was an analysis of how decisions were made regarding the management of
resources.

Select one:

a. Microeconomics

b. Self-interested

c. Greeks

d. Oikonomiks 

They own the factors of production and consume all the goods and services that the firms
produce.

Select one:

a. Households 

b. Production possibilities frontier

c. Circular-flow diagram

d. Firms
_______ refers to the ability to organize production and bear risks.

Select one:

a. Monetary economy

b. Barter system

c. Comparative advantage

d. Entrepreneurial ability 

The _______ are often regarded as the first important contributors to Western culture.

Select one:

a. Greeks 

b. Oikonomiks

c. Self-interested

d. Microeconomics

_______ produce goods and services using inputs, such as labor, land, and capital (buildings
and machines).

Select one:

a. Firms 

b. Outcome

c. Plato

d. Households, firms

The theory of consumer choice examines the tradeoffs that people face in their role as
_______.

Select one:
a. Produce goods and services

b. Economists

c. Consumers 

d. Cournot

_______ draws an analogy between the Principles of Maximum Energy and the Principles of
Greatest Happiness.

Select one:

a. Pareto

b. AugustinCournot

c. Francis YsidroEdgeworth 

d. Egoistic Hedonism

_______ is the best known of the early contributors to French rationalist microeconomics
wherein he perceives the quantity demanded as a continuous function of the price.

Select one:

a. Egoistic Hedonism

b. Francis YsidroEdgeworth

c. Pareto

d. AugustinCournot 

_______ influence on the development of microeconomics is through the work of Leon

Walras.

Select one:

a. Produce goods and services

b. Cournot 

c. Consumers

d. Economists

This _______ approach encourages the focus to be on individual behavior and the
optimization of the welfare of the individual.

Select one:

a. Chrematistiks

b. Jeremy Bentham

c. Adam Smith

d. Utilitarian 

_______ is if the quantity of the good demanded exceeds the quantity supplied at a zero
price.

Select one:

a. Economic good 

b. Adam Smith and David Ricardo

c. Absolute advantage.

d. Jevons

This a graph that shows the various combinations of outputthat the economy can possibly
produce given the available factors of production and the available production technology
those firms can use to turn these factors into output.

Select one:

a. Households
b. Firms

c. Production possibilities frontier 

d. Circular-flow diagram

According to him, if private parties can bargain without cost over the allocation of
resources, then the private market will always solve the problem of externalities and allocate
resources efficiently.

Select one:

a. Economics

b. Coase 

c. Opportunity cost

d. Law of demand

This is defined as the additional cost associated with a one-unit increase in the level of the
activity.

Select one:

a. Scarcity

b. Relative price

c. Marginal cost 

d. Rational self-interest

This diagram offers a simple way of organizing all the economic transactions that occur
between households and firms in the economy.

Select one:

a. Circular-flow diagram 
b. Isaac Newton

c. Supply

d. Price floor

This is a measurement of how expensive a good is in terms of units of some other good or
service.

Select one:

a. International markets

b. Scarcity

c. Relative price 

d. Complementary goods

He is the famous seventeenth century scientist and mathematician, allegedly became

intrigued one day when he saw an apple fall from an apple tree.

Select one:

a. Circular-flow diagram

b. Price floor

c. Supply

d. Isaac Newton 

_______ was defined by Sidgwick as the system that fixes as the reasonable ultimate end of
each individual's action his own greatest happiness.

Select one:

a. Egoistic Hedonism 

b. AugustinCournot
c. Francis YsidroEdgeworth

d. Pareto

It evaluates the current state of our world and to speculate on ways that it might be
improved; it is an important aspect of our education.

Select one:

a. Coase

b. Economics 

c. Law of demand

d. Opportunity cost

This _______ demand for a product includes both domestic and foreign demand.

Select one:

a. Land

b. Capital/ resources

c. Economics Resources

d. International markets