Econ Quiz

A visually engaging illustration of economic concepts, featuring a graph showing demand and supply curves, a depiction of a monopoly, and symbols for charity and altruism, all in a colorful and informative style.

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

25 Questions6 MinutesCreated by AnalyzingData51

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 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?

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

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?

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

Possibly, but there is not enough information given to answer the question

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?

¦� 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.

¦� 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

Econ Quiz

Econ Essentials Quiz

More Quizzes