Microeconomic Practice

An increase in demand and a decrease in supply will cause _______.

• Equilibrium quantity decreases

• Equilibrium price change is indeterminate

• Equilibrium price rises

• Equilibrium price falls

The problem of scarcity arises due to _________.

• inefficient using resources

• government regulation

• human being greed

• limited available resources

If the price elasticity of supply equals zero, this implies that:

• The percentage change in quantity supplied equals the percentage change in product price

• The period under consideration is a very long-run time period

• Suppliers can easily change the quantity of the product supplied as the price of the product changes

• The supply curve is perfectly vertical

Which of the following will cause the supply of potato to decrease?

• Consumer’s income decreases

• The number of farmers growing potatoes increases

• The price of potato decreases

• Fertilizer cost increases

“Properties are owned by God and the human are considered as trustees for the property”. Which of the following economic systems is this statement true for?

• Socialism

• Mixed economic system

• Capitalism

• Islamic economic system

A good or service that is forgone by choosing one alternative over another is called a (an):

• Opportunity cost

• Explicit cost

• Accounting cost

• Implicit cost

When a consumer has the ability and willingness to pay for a goods, this is called ________.

• supply

• demand

• needs

• wants

One of the problems created by price floors set above the equilibrium is _______.

• surplus happen

• price decrease

• supply increase

• demand increase

Which of the following has a direct relationship with the supply curve?

• The number of sellers

• Taxes

• Resource price

• Price of other goods

Which of the following is not the characteristic of a planned economy?

• Central planning authority

• Advocacy of social justice

• Public ownership of resources

• Private ownership of resources