Introduction to Micro

What is the basic economic problem?

• The imperfect interaction between demand and supply

• Market forces determine the equilibrium price level

• The existence of inequalities

• Scarcity: finite resources available to satisfy all human needs and wants

Which of the following are needs rather than wants? Choose three.

• iPhone

• Trousers

• Five Guys burger

• Water

• Bread

Which of the following are factors of production?

• Animals

• Land

• Labour

• Enterprise

• Capital

The rewards to labour are called wages. What are the rewards to land called?

Microeconomics deals with economic behaviour of

• economic system

• economic entities that make up the system

• country

• regions of a country

Macroeconomics deals with economic functions of

• Central Bank

• Government

• Policy Commission

• All of the above

Microeconomics is a study of

• a producer

• production of a good

• an industry

• all of the above

Macroeconomics is a study of

• consumption behaviour of all members of a family

• sum of all consumers of a product

• sum of consumers of all products

• all of the above

What is the macroeconomic variable?

• unemployment

• inflation

• income inequalities

• all of the above

Macroeconomics generalises

• how economic decisions are taken?

• how economic decisions are taken by people?

• how economic decisions are taken by government?

• how economic decisions are taken by the industry?