10 Questions
What concept refers to the responsiveness of quantity demanded to a change in price?
Price elasticity of demand
In economics, what term is used to describe goods where an increase in the price of one good leads to an increase in the demand for another good?
Complements
What theory suggests that in the presence of externalities, bargaining between parties can lead to an efficient outcome without government intervention?
The Coase Theorem
Which term describes a situation where individuals have an incentive to let others bear the cost of providing a public good?
Free Rider Problem
What economic concept refers to the additional output produced by using one more unit of a specific input, while holding all other inputs constant?
Marginal cost
Which concept in economics refers to the situation where individuals tend to over-consume a good when it is free, leading to inefficiency?
Tragedy of the Commons
What term is used to describe a good that is nonexcludable and nonrival, leading to challenges in pricing and access control?
Public Good
When total revenue remains constant as price changes, what type of price elasticity of demand is being exhibited?
Unitary Elasticity
What economic concept refers to the additional cost incurred for producing one more unit of a good or service?
Marginal Cost
In economics, which term is used to describe the situation when a particular input is increased while other inputs are held constant, resulting in decreasing additional output?
Law of Diminishing Marginal Utility
Test your knowledge on various microeconomics concepts including Price Elasticity of Demand, Cross Price Elasticity, Income Elasticity, Total Revenue, Externality, Utility, Decision Making, and more.
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