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Microeconomics Fundamentals

Microeconomics

A collection of foundational microeconomic concepts and principles.

economics markets theory

12 Questions Medium Ages 15+ Sep 25, 2026

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About this Study Set

This study set covers Microeconomics through 12 practice questions. A collection of foundational microeconomic concepts and principles. Every question includes the correct answer so you can learn as you go — pick any format above to get started.

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Browse all 12 questions from the Microeconomics Fundamentals study set below. Each question shows the correct answer — select a study format above to practice interactively.

1 What is the term for the additional satisfaction a consumer gains from consuming one more unit of a good or service?

A Total utility
B Marginal utility
C Opportunity cost
D Diminishing returns

2 In a competitive market, what occurs at the equilibrium price?

A Quantity supplied exceeds quantity demanded
B Quantity demanded exceeds quantity supplied
C Quantity supplied equals quantity demanded
D The government sets the price

3 Which of the following describes a situation where a single firm is the sole provider of a product or service with no close substitutes?

A Monopolistic competition
B Oligopoly
C Perfect competition
D Monopoly

4 What is defined as the value of the next best alternative that is foregone when making a decision?

A Sunk cost
B Marginal cost
C Opportunity cost
D Fixed cost

5 Which economic principle states that as more units of a variable input are added to a fixed input, the additional output will eventually decrease?

A Law of diminishing marginal returns
B Law of demand
C Economies of scale
D Law of supply

6 What type of good experiences a decrease in demand when consumer income rises?

A Normal good
B Inferior good
C Luxury good
D Substitute good

7 Price elasticity of demand measures the responsiveness of quantity demanded to a change in what?

A Supply
B Production cost
C Price
D Consumer tastes

8 Which market structure is characterized by many firms selling differentiated products with low barriers to entry?

A Perfect competition
B Monopolistic competition
C Oligopoly
D Monopoly

9 What does a demand curve typically show?

A Direct relationship between price and quantity
B Inverse relationship between price and quantity
C Relationship between cost and profit
D Relationship between income and savings

10 Which of the following is considered a fixed cost for a manufacturing firm?

A Raw material costs
B Labour wages
C Electricity usage
D Annual insurance premiums

11 If two goods are complements, an increase in the price of one will likely cause what to happen to the demand for the other?

A Increase
B Decrease
C Remain unchanged
D Fluctuate randomly

12 What is the term for the point where the cost of producing one additional unit equals the revenue gained from selling that unit?

A Profit maximization point
B Break-even point
C Total revenue point
D Fixed cost threshold

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