DPB10013

The study of how prices are set for individual goods is considered as an issue in ___________________.

• macroeconomics

• microeconomics

• descriptive economics

• normative economics

Which of the following is concerned with microeconomics?

• The unemployment rate decrease by 30%.

• In 2017, the national income of a country is RM23,400 million.

• The price of chicken increases significantly during Hari Raya season.

• The economic growth of the country is expected to be 6% in 2018.

"We cannot have all the things we want. The resources available to satisfy our wants are, at any time, limited in supply".

The statements reflects the concepts of _______________.

• opportunity cost

• choice

• scarcity

• unemployment

In a planned economy or socialism, ________________.

• there is no government interference

• there is freedom for enterprise

• governments will plan production

• prices are adjust to reconcile scarcity and desires

Which of the following can lead to an increase in the supply for goods X?

• A decrease in the number of sellers of goods X.

• An increase in the price of inputs used to make goods X.

• An increase in consumers' income, assuming goods X is a normal.

• An improvement in technology used in production of goods X.

Which of the following will NOT cause an increase in the market demand for Scholl (a brand of shoes)?

• A decrease in the price of Scholl.

• An increase in the price of Hush Puppies (another brand of shoes).

• An increase in the price of shoes protection sprays.

• An increase in income, if Scholl is a luxury goods.

Assume that people enjoy eating either chicken or fish. What will happen in the market for chicken when the price of fish increased?

• The demand curve shifts to left.

• The supply curve shifts to right.

• There is no change in the demand curve.

• The demand curve shifts to right.

Which of the following shifts the demand curve for iPhone 7 to the right?

• A decrease in the price of iPhone 7.

• A decrease in consumer income if iPhone 7 is a normal goods.

• An increase in the price of iPhone 7.

• An increase in consumer income if iPhone 7 is a normal goods.

What is the meaning of 'Ceiling Price'?

• The government impose a maximum price that prevents certain prices from rising above that price.

• The government sets a minimum price that prevents certain prices from falling below that price.

• The government provides incentives to the seller or producer to producer more goods.

• The government imposes a certain amount to be produced by the seller or producer.

Price elasticity of demand measures the responsiveness of quantity demanded due to the changes in _____________.

• its price

• income

• the product

• the service