Introduction to economy

What is the definition of economic?

• A study of how people use their unlimited resource to fulfill unlimited wants and involves alternative or choice.

• A study of how people use their unlimited resource to fulfill limited wants and involves alternative or choice.

• A study of how people use their limited resource to fulfill unlimited wants and involves alternative or choice.

• A study of how people use their limited resource to fulfill limited wants and involves alternative or choice.

Basic economic concept are consist of

• Scarcity

• Opportunity cost

• Economic cost

• Choice

In theory of demand, it is stated that.......

• The higher the price of the product, the lower the quantity demanded  of that product and vice versa

• The higher the price of the product, the higher the quantity demanded  of that product and vice versa

• The lower the price of the product, the lower the quantity demanded  of that product and vice versa

• The higher the price of the product, the lower the quality demanded  of that product and vice versa

In theory of supply, it is stated that.......

• when the price of goods decreases, the quantity supply of goods is also rises and vice versa.

• when the price of goods rises, the quantity supply of goods is decreases and vice versa.

• when the price of goods rises, the quantity supply of goods remain constant

• when the price of goods rises, the quantity supply of goods is also rises and vice versa.

An economic system where all the economic decision are made by the government or a central authority is called ______

• Capitalist economic system

• Mixed economy system

• Islamic economic system

• Socialist economic system

All of the followings are factor of production except

• Labour

• Land

• Management system

• Entrepreneurship

Profit maximization occur when

• Average revenue = Average cost

• Marginal revenue < marginal cost

• Marginal cost = Marginal revenue

• Marginal cost < Average revenue

"As additional units of a variable input are used in combination with fixed input will increase the production, beyond a certain level of production the rate of increase in output will decrease and marginal product will eventually decline". This statement explains the ________

• law of return to scale

• law of production

• law of variable proportions

• law of diminishing marginal return

A change in total cost over a change in quantity or an increased in total cost when there is one unit increase in output production is called

• Marginal cost

• Fixed cost

• Business cost

• Economic cost

Market is is equilibrium when __________