MICROECONOMICS (CHAPTER 1&2)

1. We make decision to pursue an activity when

• A. Scarcity is zero

• A. Net benefit is zero

• A. Choices are limited

• A. Opportunity cost is low

When resources are not full utilized, we call it

• Unemployment

• Depletion

• Shortage

• Scarcity

Economics can be divided into two major branches which is

• international economics and macroeconomics

• labor economics and microeconomics

• microeconomics and macroeconomics

• international economics and domestic economics

The unemployment rate in Malaysia is 4 % in 1997. This statement belongs to

• domestic economics

• international economics

• macroeconomics

• microeconomics

Bill Gates, the founder of Microsoft makes millions in a second. One day as he was walking along Jalan UMS, he found RM1,000. Should Bill Gates pick up the money he found and keep it for himself?

• Yes, RM1,000 is a lot of money. Bill Gates can use the money for his needs. If he did not pick it up his opportunity cost will be high.

• Yes, RM1,000 might be picked up by another person. Might as well Bill Gates pick it up. His opportunity cost is low.

• No. RM1,000 is much lower than what Bill Gates earns in a second. He should not waste time bending over to pick the money. His opportunity cost is high.

• RM1,000 is much lower than what Bill Gates earns in a second. He should not pick it up because his opportunity cost is low.

Communism political system is closely related to ___________economic system.

PTPTN is an education loan given to Malaysian students pursuing their education in the local university. Malaysia practices _________ economic system

If the country uses all its resources to produce only one type of good, it is called

If there is an earthquake which destroyed the buildings and crops in a country, the Production Possibility Curve will shift

• To the left

• To the right

• Parallel to the right

• Parallel to the left

The economic system that uses the market to distribute goods and services as well as resources is

• Capitalist

• Mixed

• Centrally planned

• Islamic