Economics is the study of :
an economy as a whole
choices in the presence of limited or scarce resources
how individuals and companies make decisions to allocate limited resources

Scarcity refers to resources that are :
costly
limited
unavailable

Which of the following economic activiites would most likeyl be classified within the realm of microeconomics? An analysis of the :
trade realations between countries
effect of a country's inflation rate on economy
profitability of a company regulated by the government

Which of the following statements best describes a potential microeconomic impact of a substantial incraese in global oil prices ?
Airline companies increase prices on plane tickets
unemployment increases in resort towns worldwide
Japanese export increase due to demand for fuel efficient cars

If the price of choclolate increases , the quantitiy of chocolate demanded will most likely :
increase
decrease
reamanin unchanged

Which of the following would most likely cause a steel manufacturer to increase the quantity supplied ? An increase in :
input costs
corporate taxes
the price of steel

If consumers demand more of a good than sellers find profitable to produce , then sellers inventories will tend to :
deplete
pile up
remain unchanged

Market equilibrium is a state in the market when , at a particular price and with all otehr factors remaining unchanged ,no buyer or seller has any incentive or desire to change the :
quality of a product that is demanded or supplied
market for a product thats is demanded or supplied
quantitiy of a product thats is demanded or supplied

Whcich of the following statements best describes low price elasticity ? A small change in price produces a :
proportional change in demand
less than proporational change in demand
disproportionally larger change in demand

If revenues decrease when the price of a good increases , the price elasticity of this good is most likely :
elastic
inelastic
unti elastic

Holding all other factors constant , if the price of a product increases , the demand for a substitute product is most likely to:
increase
decrease
remanin unchanged

Holding all other factors constant , if the demand for printers increases , the demand for ink cartridges is most likely to :
decrease
increase
remanin unchanged

Which of the following costs is most likely a variable cost for a manufacturing plant ?
Interest expense
Insurance expense
Energy costs

Which of the following statements best describes the effect of lower production on a manufacturing plants costs per unti ? Average :
total cost will decrease
variable cost will reamain fairly constant
fixed cost will decrease

An industry dominated by a small number of large companeis is most likely a
Oligopoly
monopoly
perfect competition