Microeconomics Quiz

1. You won a free ticket to see Justin Biber concert (which has no resale value). Taylor Swift is
performing on the same night and is your most attractive alternative. Tickets to see Taylor cost
$40, but you are willing to pay up to $50 to see her. Assume there are no other costs to see either
performer.
Based on this information, what is the opportunity cost of seeing Justin Biber?
1. $0
2. $10
3. $40
4. $50
5. None of the above

2. You and your friend who live together are living in the same house and deciding to do a party.
The main job in this BD parting is to clean the room and cook for the party and you are good at
both tough our friend is not good at both. You both have 2hrs to prepare for this party Should
your friend help you in this organizing event? Why?

3. Say the price of tomatoes is $6. What would happen if the price of tomatoes increased to $8
(assuming everything else stays the same)?
1. Quantity demanded goes up
2. Quantity demanded goes down
3. Demand goes up
4. Demand goes down

4. When your income goes up, your demand for public transportation goes down. Therefore,
public transportation is a __________ good.
1. Normal
2. Inferior
3. Complement
4. Substitute

5. Say the price of tomatoes is $4. What would happen if the price of tomatoes increased to $6
(assuming everything else stays the same)?
1. Quantity supplied goes up
2. Quantity supplied goes down
3. Supply goes up
4. Supply goes down

6. If the cost of gas increases the _______ will _______.

1. Supply; increase
2. Supply; decrease
3. Quantity supplied; increase
4. Quantity supplied; decrease

7. When the price of the inputs decreases the supply _______ and the supply curve ________.
1. Increases; shifts up
2. Decreases; shifts down
3. Increases: shifts right
4. Decreases; shifts left

8. If the quantity of tomatoes supplied was larger than the quantity of tomatoes demanded, the
price of tomatoes would probably tend to:
1. Increase
2. Decrease
3. Stay the same
4. We can’t say.

9. If the quantity of tomatoes demanded was larger than the quantity of tomatoes supplied, the
price of tomatoes would probably tend to:
1. Increase
2. Decrease
3. Stay the same
4. We can’t say

10. In the theory the equilibrium price is usually set by:

1. Sellers
2. Buyers
3. Both sellers and buyers together
4. Neither seller or buyers