*******MULTIPLE CHOICE

• Microeconomics is a branch of knowledge that focuses on the accumulation and consumption of wealth of

a. Foreign Nations

b. Governments

c. Business & Individuals

d. Global Markets

• Which is a microeconomic statement?

a. China Surpasses US as Largest Economy

b. Congress Passes New Stimulus Bill

c. New York University to lay off 50 Professors

d. Pandemic Death Tolls Rise

• Jessica, Jacob & Judy opens a coffee shop named JJJ Coffee in the neighborhood. It is classified as;

a. Sole Proprietorship

b. Partnership

c. Not-for-Profit

d. Corporation

• A Convenience Store stocks goods their customers want to buy, but government and welfare programs are an example of;

a. Laissez-Faire System Economy

b. Market System Economy

c. Utilitarian System Economy

d. Command System Economy

• Matthew spends his money on banana and apples. If the price of banana falls and apples _________ then Matthew will ______________ banana for apples.

a. Rise; Substitute

b. Rise; Demand

c. Fall; Substitute

d. Fall; Supply

• The Theory of Consumer Behavior consists of;

a. Budget Constraints

b. Rational Behavior

c. Preferences & Prices

d. All of the Above

• The Law of Diminishing Marginal Returns states as consumer purchases additional units of product, their marginal utility of consumption;

a. Determined by Change in Price

b. Increases

c. Remains Constant

d .Decreases

• When Ed = 0 price of the product demanded is ________________.

a. Pure Elastic

b. Perfect or Unit Elastic

c. Inelastic

d. Elastic

• When Ed = .87 price of the product demanded is _______________

a. Elastic

b. Unit Elastic

c. Inelastic

d. Perfect Elastic

• Society's economizing problem focuses on which of the following?

a. Purposeful Behaviors

b. Choices & Alternatives

c. All of the Above

d. Limitations

• If Utility is want or satisfying power, Therefore, Utility is ________________________.

a. Subjective

b. All of the Above

c. Difficult to Quantify

d. Valuable & Useful

• The Behavioral Economic Theory suggests consumers make decisions based on All of the following Except;

a. Fairness & Trust

b. Interest Rates

c. Financial Incentives

d. Price Changes

• The Neoclassical Theory states consumers exhibit rational behaviors, are eager, accurate, and act in self-serving interest.

a. true

b. false

• The Behavioral Theory states consumers exhibit irrational behaviors, makes systematic errors and will not modify their behaviors.

a. true

b. false