Leaving Certificate Microeconomics Practice Test

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• What is the definition of market demand?
• What is the supply price?
• What is considered part of total costs in production?
• What does “perfectly inelastic supply” indicate about a good?
• What is a patent in terms of market competition?
• Why is entrepreneurship considered important to the Irish economy?
• What is a common characteristic of weight-gaining industries?
• What is explicit collusion?
• Which of the following is evidence of a mixed economy?
• In an oligopoly, how does the demand curve typically behave if a firm raises its price?
• What does an individual supply schedule provide?
• What does the proportion of income spent on a good affect?
• What characterizes an inferior good?
• What does liquidity preference signify?
• The substitution effect describes which of the following?
• In which situation does a firm face a downward-sloping demand curve?
• What is collusion in the context of oligopoly?
• What does the concept of free entry and exit in a market indicate?
• What is a limitation of using the Live Register for measuring unemployment?
• Which of the following is an example of non-price competition?
• What will likely happen if the price of a substitute good increases?
• What defines consumer surplus?
• Which of the following defines a normal good?
• What characterizes an inferior good?
• Joint demand refers to:
• Which of the following best describes land in the context of economics?
• What is one of the inherent risks undertaken by entrepreneurs?
• Seasonal unemployment is primarily influenced by?
• What type of risk is not possible to insure against?
• What defines a mixed economy?
• What does the term "state of technology" refer to in the context of supply?
• Which of the following is a key assumption of economics?
• What does total revenue refer to in a firm?
• What shape does the demand curve facing a firm in imperfect competition typically have?
• What does 'wealth' refer to in an economic context?
• What occurs as a firm increases its size of operation regarding costs?
• What happens in an oligopoly if one firm reduces its price?
• Which of the following is NOT a characteristic of land?
• What happens in markets where there is a natural monopoly?
• Which example illustrates economies of scale in the aircraft industry?
• What is the Marginal Efficiency of Capital (MEC)?
• What role do discounts play in second-degree price discrimination?
• Which factor is associated with government involvement in supply?
• How is marginal revenue defined?
• Which of the following benefits a firm in the aircraft industry through technical economies?
• Effective demand is characterized by:
• Derived demand is best described as:
• What role does entrepreneurship play in deciding what commodities will be produced?
• What does brand proliferation refer to?
• How does the concept of joint demand relate to complementary goods?
• What does Price Elasticity of Demand (PED) measure?
• Which of the following best describes capital widening?
• What could cause abrupt changes in supply that are unplanned?
• What does an industry consist of?
• How does seasonal unemployment typically manifest?
• What is one reason people hold money for precautionary motives?
• What does marginal utility refer to?
• What are consumer goods primarily defined by?
• What is a common advantage of a mixed economy?
• What is considered supernormal profit?
• Which of the following is considered a non-insurable risk faced by entrepreneurs?
• Which factor does NOT contribute to institutional unemployment?
• What is the primary objective of branding in a competitive market?
• What describes frictional unemployment?
• How is a supply schedule defined?
• Legislation passed by government in a mixed economy is intended to do what?
• What is the ultimate hope of an entrepreneur when undertaking risks?
• What is meant by welfare in economics?
• Which organization is an example of a group that practices explicit collusion?
• What does gross investment refer to?
• Which best describes a demand function?
• Market-oriented industries prioritize which of the following?
• What characteristic of land indicates that its supply is limited?
• In relation to the rate of interest, higher rates typically result in which of the following?
• What characterizes a good with perfectly elastic demand?
• What are external economies of scale?
• Which factor relates to the price of substitute goods affecting demand?
• How is profit calculated?
• What is the primary principle behind ceteris paribus in demand analysis?
• How does scarcity affect economic decision-making?
• In terms of demand shifts, what impact does expectation have?
• What does the term 'depreciation' refer to in economic terms?
• Which of the following best describes unitary elastic demand?
• According to the Law of Demand, what happens when prices rise?
• Which statement best characterizes microeconomics?
• What is a key characteristic of wealth?
• Which term describes funds that are readily available for immediate use?
• What is the definition of an economic good?
• What does individual demand refer to?
• Which of the following defines a luxury good?
• How is the investment ratio calculated?
• Internal economies of scale refer to:
• What does the law of equi-marginal returns state?
• What are transfer payments?
• What happens if average revenue is greater than average cost?
• Which of the following is NOT an assumption of a monopoly?
• A demand schedule is best defined as:
• How is saving defined in economic terms?
• What are explicit costs primarily associated with in a firm's operations?
• What does Price Elasticity of Supply (PES) reflect?
• Which of the following best describes variable costs?
• What describes the optimum size of a firm?
• What factor does NOT affect price elasticity of demand (PED)?
• What defines a legal monopoly?
• What does price discrimination involve?
• What is meant by a movement along a demand curve?
• How is a perfectly competitive firm described in relation to market price?
• Institutional unemployment can arise from?
• Which condition is necessary for price discrimination to occur?
• What does economic rent refer to?
• What is the effect of deregulation in a market?
• Capital deepening refers to?
• How does entrepreneurship encourage further investment?
• Which term describes all human effort involved in production?
• Which statement describes the concentration ratio in an industry?
• In a monopoly, what is the firm’s position regarding pricing?
• Which of these defines an industry focused on weight-losing production?
• What is opportunity cost?
• In profit maximization, where does a firm produce?
• Which statement accurately describes elastic demand?
• What is the real rate of interest calculated as?
• Which of the following describes factors of production?
• What is an influence of the durability of a good on its demand elasticity?
• Why is the equi-marginal principle important for consumers?
• What characterizes substitute goods?
• Which of the following is a positive impact of increasing minimum wage?
• Which circumstance would not typically be covered by insurance?
• What does the decision of a government to cut taxes imply regarding opportunity cost?
• What is one of the main characteristics of an oligopoly?
• What does joint profit maximization involve?
• How does product differentiation benefit firms in an oligopoly?
• What does a supply curve graphically represent?
• What occurs at market equilibrium?
• What does investment refer to in an economic context?
• Which of the following is NOT an assumption of imperfect competition?
• Which of the following is NOT a factor that causes a demand curve to shift?
• What happens to supply when new technology is introduced?
• How do indirect taxes influence market supply?
• Income Elasticity of Demand is defined as?
• What does not reflect a price discrimination strategy?
• What would likely occur in the market if demand significantly increases?
• What can happen if a single firm lowers prices in an implicitly collusive environment?
• Which of the following concepts emphasizes the need to give up one thing to obtain another?
• Which of the following is a consequence of structural unemployment?
• What is normal profit?
• Which type of risk can be insured against?
• What are transfer earnings in economic terms?
• What is super normal profit?
• What is represented by an individual demand curve?
• What factor contributes to brand loyalty in a market?
• What does the income effect illustrate?
• What characterizes a free enterprise economy?
• What is the significance of holding cash for emergency situations?
• Which of the following is a benefit of entrepreneurship for government revenue?
• Average variable cost refers to:
• What is the relationship between complementary goods?
• Which of the following best describes a market (aggregate) supply schedule?
• Which of the following best illustrates opportunity cost in a government budget?
• What information does a market demand schedule provide?
• What are internal diseconomies of scale?
• What is a defining characteristic of the short run in production theory?
• Which type of advertising focuses on a single firm's product qualities versus competing products?
• Which of the following is true regarding the demand for inferior goods?
• What does an individual supply curve illustrate?
• What term describes the objective of a firm in a competitive market?
• Why must choices be made according to economic principles?
• Which is a necessary condition for a monopolist to effectively use price discrimination?
• Unplanned factors affecting demand may include:
• In which market structure does a single firm supply the entire output of a good or service?
• What defines a snob good?
• Which of the following would be categorized as an economic good?
• Which of the following best describes implicit costs?
• What is market equilibrium?
• Which of the following best describes producer surplus?
• What does the market (aggregate) supply curve represent?
• Which concept describes the situation where resources are limited while wants are unlimited?
• What typically occurs in the long run for a firm?
• What defines implicit collusion among firms?
• What does the marginal product of labor (MRP) measure?
• What does utility represent in economic terms?
• What does the speculative motive refer to in economic terms?
• Which example best illustrates second-degree price discrimination?
• Cross Elasticity of Demand measures what relationship?
• What does marginal cost represent in a production context?
• What is meant by the term "rent of ability"?
• What is one effect of high barriers to entry in an oligopoly?
• What typically occurs when a firm grows beyond its optimal size?
• A firm experiencing capacity constraints may struggle to:
• In third-degree price discrimination, consumers with which type of demand pay a higher price?
• Which term describes the firm’s profit after accounting for all costs?
• What is an example of fixed capital?
• What is an essential condition for profit maximization in production?
• Supply-oriented industries are primarily focused on:
• What are economies of scale?
• What is a characteristic of an oligopoly?
• One characteristic of frictional unemployment is?
• Which factor could lead to increased savings in an economy?
• What is meant by price rigidity?
• How is consumer surplus calculated?
• What does the term 'income' refer to in economics?
• What does a market demand curve represent?
• What type of economy is characterized by State control over economic activities?
• What is meant by labor productivity?
• What is one outcome of applying price discrimination?
• What is meant by capacity constraint in economics?
• What characterizes external diseconomies of scale?
• What is an essential characteristic of the products sold by a monopoly?
• What characterizes a natural monopoly?
• What does a perfectly elastic demand curve indicate for a firm?
• What defines a Giffen good?
• Which of the following reflects an increase in demand for a luxury good?
• Average cost is calculated by which of the following formulas?
• What can lead to the law of diminishing marginal returns in production?
• What is a key implication of firms not reducing prices due to implicit collusion?
• What are "related goods" in market supply?
• Which type of industries are classified as footloose?
• What is meant by excess capacity in a firm?
• Which is an example of price discrimination?
• Which characteristic is NOT associated with perfectly competitive firms?
• What characterizes first-degree price discrimination?
• Why would a firm seek a patent?
• What is the main focus of economics as a field of study?
• Which factor relates to production costs affecting supply?
• What is a common practice of price discrimination in travel services?
• Why do monopolies face barriers to entry?
• Economic laws are defined as what?
• What does real income measure?
• What defines inelastic demand?
• What is a supply function?
• Which market structure is characterized by a small number of firms holding significant market share?
• A shift in a demand curve occurs due to:
• What type of relationship does the Law of Supply illustrate?
• What is the term for the process of allocating resources to achieve the highest utility?
• Which factor causes demand to become more elastic?
• Which of the following factors directly contributes to creating wealth within a country?
• What does the term profit maximization refer to?
• What is the definition of enterprise in the context of production?
• Which of the following is NOT a factor currently affecting the rate of savings in the Irish economy?
• What is the long-run equilibrium for a firm?
• What does a demand curve illustrate?
• What term describes obstacles that prevent new firms from entering a market dominated by a monopolist?
• What does the term 'trade-off' refer to in economics?
• What does the nominal rate of interest represent?
• What does the transactionary motive for holding money refer to?
• How is labor productivity typically calculated?
• What does money income refer to?
• Which of the following is NOT a factor influencing economic choices?
• What is the purpose of limit pricing?
• What does a downward-sloping demand curve indicate?
• What is described by the law of diminishing marginal returns?
• How do external economies of scale benefit all firms within an industry?
• What does the term "unplanned factors" in supply refer to?
• Which best describes a good with many alternative uses?
• What indicates a good with a negative income effect?
• Which of the following types of competition is most common in oligopolistic markets?
• What is a firm defined as?
• What could lead to increased risks of company relocation?
• How does an individual demand schedule function?
• What is the outcome of increased income on demand?
• How is perfectly inelastic demand defined?
• What does macroeconomics primarily deal with?
• How does the law of diminishing marginal utility help explain consumer behavior?
• Average revenue is also known as?
• What is one significant element of making economic choices?
• What is the Law of Supply?
• What defines the long run in production theory?
• Which of the following is NOT a form of non-price competition?
• What is the market condition for firms in long-run equilibrium?
• What type of unemployment occurs due to changes in the demand for specific skill sets?
• Construction economies in the aircraft industry refer to which of the following?
• What does the term 'capital' refer to in economics?
• Which of the following describes the effect of time on price elasticity of demand?
• What is the average fixed cost?
• What is normal profit in economic terms?
• Which of the following is NOT a factor that affects supply?
• Government policies can shift demand curves through: