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Microeconomics Quick Quiz

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Key terms and concepts practice

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Microeconomics Quick Quiz
 

Microeconomics Quick QuizOnline version

Key terms and concepts practice

by Ben
1

What is the marginal product of labor?

2

How do diminishing marginal returns happen?

3

On an equilibrium graph, when does a shortage occur?

4

What is a price floor?

5

What is a price ceiling?

6

What is marginal revenue?

7

What are substitutes in consumer choice?

8

What are normal goods vs inferior goods?

9

What is total revenue (TR)?

10

What is an excise tax effect in microeconomics?

Feedback

The marginal product of labor is the additional quantity produced by one more unit of labor.

Diminishing returns occur when additional inputs yield progressively smaller gains because some inputs are fixed.

A shortage happens below the equilibrium price where demand is greater than supply.

Price floors create surplus because producers receive a price higher than market-clearing level.

Price ceilings reduce suppliers' incentive to produce, creating a shortage.

Marginal revenue is the additional revenue from the next unit sold.

Substitutes are two goods where an increase in the price of one raises demand for the other.

Normal goods increase in demand as income rises; inferior goods decrease with higher income.

Total revenue is simply price times the quantity sold.

Excise taxes raise the cost of a specific good, reducing supply and often raising price.

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