C1 : SET 5 - INTRODUCTION TO MICROECONOMICS

Problem of ____________ occurs when goods and services are limited compared to man’s unlimited want and desires.

• surplus

• scarcity

• choices

• opportunity cost

In a mixed economy, the problem of how much of a good should be produced is solved by ____________.

• market mechanism.

• market mechanism and government intervention.

• production of public goods.

• the quantity of factors of production in the economy.

In a central planned economy, the problem of for whom a goods should be produced is solved by ______________.

• rationing.

• market mechanism.

• market factors.

• consumers purchasing power.

In central planned economic system, the questions of what, how and for whom to produce are solved by __________________.

• the elected representative of the people.

• the price mechanism.

• the central planning authorities.

• the action of producers.

Supporter of s capitalism economic system would do all the following EXCEPT __________.

• promote efficiency.

• stimulate innovation.

• be directed by the decisions of individual buyers and sellers.

• achieve an equal income distribution.

Study how Ahmad allocates his time between work and leisure is _____________.

• microeconomics.

• macroeconomics.

• empirical economics.

• managerial economics

Opportunity cost is defined as ________________.

• human wants are always greater than the available resources.

• second best alternative that has to forgo for another choice which gives more satisfaction.

• a study of how people use their limited resources to satisfy their unlimited needs and desires.

• an individual, firm and government make decisions to choose from many alternatives.

The opportunity cost for a student attending collage for a year is measured by ________.

• the benefit received by the student.

• the tuition paid for the year.

• the value of the most valued opportunity forgone by attending collage.

• the total money outlays associated with attending collage.