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Microeconomics Quiz

Question 1 of 10

1

Elasticity refers to the responsiveness of demand due to

Select one of the following:

  • Cost

  • Price

  • Motivation

  • Income

Explanation

Question 2 of 10

1

Products that are addictive (cigarettes, alcohol, cocaine etc.) tend to be

Select one of the following:

  • Inelastic, because people are not willing to pay more for a product that has no real benefit in their life.

  • Elastic, because people who are addictive will always want the product, regardless of the price.

  • Inelastic, because people who are addictive will always want the product, regardless of the price.

  • Elastic, because people are not willing to pay more for a product that has no real benefit in their life.

Explanation

Question 3 of 10

1

Business air travel is more inelastic than leisure air travel because

Select one of the following:

  • People who travel for business usually travel in first class so it's more expensive.

  • People who travel for leisure will have other options other than traveling for vacation.

  • There is more people traveling for business than people traveling for leisure.

  • There is more people traveling for leisure than people traveling for business.

Explanation

Question 4 of 10

1

The demand curve is upward sloping.

Select one of the following:

  • True
  • False

Explanation

Question 5 of 10

1

Lipton Ice Tea and Fuze Tea are weak substitutes.

Select one of the following:

  • True
  • False

Explanation

Question 6 of 10

1

If the price for iPhones suddenly rises drastically, what is expected to happen to the demand for the Samsung Galaxy?

Select one of the following:

  • It will increase

  • It will stay the same

  • It will decrease

  • It will decrease and then increase in the long run.

Explanation

Question 7 of 10

1

Which of the following is an example of a complementary good of pasta?

Select one of the following:

  • Coca-Cola

  • Eggs

  • Nuts

  • Parmesan cheese

Explanation

Question 8 of 10

1

Product A has unitary elasticity. If the price for Product A goes from $20 to $100, the demand will be

Select one of the following:

  • 5,7x lower

  • 5,4x higher

  • 5,3x lower

  • None of the above

Explanation

Question 9 of 10

1

Cellphones and SIM cards are expected to have joint demand.

Select one of the following:

  • True
  • False

Explanation

Question 10 of 10

1

Motivation is one of the factors affecting PES.

Select one of the following:

  • True
  • False

Explanation

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