Econ Quiz
Econ Essentials Quiz
Test your understanding of key economic concepts with our comprehensive 25-question quiz. This quiz covers various topics, from labor economics to monopolistic behavior, providing you with a diverse set of scenarios to challenge your knowledge.
Whether you're a student, educator, or simply an economics enthusiast, this quiz will help you gauge your grasp of essential economic principles:
- Labor Demand and Supply
- Minimum Wage Impacts
- Monopoly Pricing Strategies
- Elasticity of Demand
- Charity and Altruism
Why is the demand curve for labor sloped?
It’s not
Because of increasing marginal cost
Because of diminishing marginal benefit
Because of diminishing marginal returns to labor
How should the height of the labor demand curve at a particular point be interpreted?
It is the maximum the market is willing to pay in order to employ that specific unit of labor
It is the value of the marginal product of that unit of labor
It is the volume of output generated by that unit of labor, multiplied by the unit output price
All of the above are correct
If the market is in equilibrium, how many laborers will be supplied and demanded by this market?
Less than 300
300
600
800
None of the above
If the market transitions of the equilibrium wage to a minimum wage of $7.5, how much unemployment will be created?
600
300
500
Not enough information provided to answer this question
Referring to the question above, how much of the resulting unemployment is due to people entering the market due to the higher wage being offered?
100
200
300
400
500
There is robust and consistent evidence that minimum wage laws contribute to unemployment in the United States
True
False
Under what conditions might a minimum wage not cause unemployment?
There aren’t any
If the demand for the output good created by minimum wage workers is inelastic
If the demand for labor is not competitive (e.g., there is monopsony power, meaning one firm can influence the price of labor)
Both b and c are correct.
Why is the supply of labor upward sloping?
Because firms are willing to supply more at higher prices
Because of diminishing marginal returns to labor
Because leisure is more valuable when not very much of it is being consumed
None of the above
In a field experiment implemented in Wisconsin, Pager (2003) found that:
White non-convicted job applicants were called for a second-round interview 34% of the time
White convicted job applicants were called for a second-round interview 17% of the time.
Black non-convicted applicants were called for a second-round interview 35% of the time
Black non-convicted applicants were called for a second-round interview 16% of the time
Both a and b are correct
Why is the marginal revenue curve facing a monopolist everywhere below the corresponding demand curve?
Because the cost of production must be subtracted from price
Because monopolists typically 1st degree price discriminate
Because each additional unit is sold at a lower price than the one before
Because selling additional units requires the sale price of all units to fall
Recall that the price elasticity of demand is given by: . And note this can be re-written as: . Referring to the figure above, what is the price elasticity of demand at point B?
<-1
>-1
=-1
None of the above
Referring to the figure above, what is the price elasticity of demand at point C?
<-1
>-1
=-1
Referring to the figure above, what is the price elasticity of demand at point A?
<-1
>-1
=-1
Recall that revenue of a monopolist is given by R= P*Q, where Q is output and P is the unit price. It follows that: % Change R = % change P + % change in Q. Based on your answers above, will an increase in price increase revenue at point A?
No
Yes
Referring to the question above, will an increase in price increase revenue at point B?
No
Yes
What is the equation of the marginal revenue curve corresponding to the figure above?
MR = ½ Z + Z
MR = Z – Q
MR = Z – 4Q
MR = Z -2Q
Let a monopoly produce with the following profit function: , where p is price, q is output, and c is marginal cost. In this particular case, is it true that average total cost and marginal cost are equal?
Yes
No
Possibly, but there is not enough information given to answer the question
What is the profit maximizing level of output for this monopoly?
Q’
Q’’
Q’’’
A volume greater than q’’
What area represents the deadweight loss created by monopolistic control?
A
B
C
B + C
Suppose a movie theatre charges more for people between the ages of 18-64 years of age. This is an example of
1st degree price discrimination
2nd degree price discrimination
3rd degree price discrimination
¦ 4th degree price discrimination
¦ True or false, each year the amount of money given away by Americans is roughly equal to the GDP of Denmark
¦ True
¦ False
¦ According to your instructor, what are the two main reasons people give to charities?
¦ Pure altruism
¦ Impure altruism
¦ Trust
¦ Hyperbolic discounting
¦ Both a and b are correct
¦ What is an information cascade?
¦ A situation in which too many options make a person unable to make a decision
¦ A situation in which information overload causes people to act irrationally
¦ Something that is necessary for large groups of people to reach an equilibrium
¦ A situation in which one person’s decision influences another person’s decision, and so on.
¦ Is there empirical evidence of peer effects in education and health fitness?
¦ Yes
¦ No
¦ What did the Asch conformity experiment find?
¦ That crowds of people with opposing views can change people’s beliefs
¦ That crowds of people with opposing views can cause people to knowingly make false statements
¦ That people are not as responsive to public pressure as previously thought
¦ That markets do not work well when trade occurs in public settings
{"name":"Econ Quiz", "url":"https://www.quiz-maker.com/QPREVIEW","txt":"Test your understanding of key economic concepts with our comprehensive 25-question quiz. This quiz covers various topics, from labor economics to monopolistic behavior, providing you with a diverse set of scenarios to challenge your knowledge.Whether you're a student, educator, or simply an economics enthusiast, this quiz will help you gauge your grasp of essential economic principles:Labor Demand and SupplyMinimum Wage ImpactsMonopoly Pricing StrategiesElasticity of DemandCharity and Altruism","img":"https:/images/course3.png"}