REVISION AGR113 C1-C4

Economic is the study on how

• individual able to maximize his/her demands through good and service

• firm/company able to maximize profit through selling of good and service

• human manage limited resources in order to fulfil unlimited wants and demand

• relationship between society and government for development of country

If an increase in the price of good A causes the demand curve for good B to shift left, then

• A and B are substitute

• A and B are complementary

• B must be an inferior good

• A must be a normal good

Opportunity cost is defined as

• the cost of the second best option that will have to be forgone in order to select the best option

• the cost of using a factor of production

• the cost related to the optimum level of production

• the cost related to the minimum level of production

Scarcity exists when

• there is an infinite amount of resource or good

• there is less available good or resource

• society can meet the wants of every individuals

• the price of a good rises

Increasing opportunity cost is also represented by a ______ PPC

• convex

• concave

• linear

• upward

The price elasticity of demand for a vertical demand curve is

• unitary elastic

• perfectly elastic

• relatively inelastic

• perfectly inelastic

All of the following are held to be constant when the supply curve for a product is drawn EXCEPT

• the price of the product

• the change of the technology

• the number of producers

• the price of inputs used to make the product

Oreo and Tiger biscuit are substitute goods. Other things being equal, an increase in the price of Tiger biscuit will

• put downward pressure on the price of Oreo

• has no effect on the demand of Oreo

• increase the demand for Oreo

• decrease the demand for Oreo

Fuel and car are complement goods. Other things being equal, an increase in the price of car will

• put downward pressure on the price of fuel

• has no effect on the demand for car

• increase the demand for car

• decrease the demand for fuel

Which of the following will cause a shift in the supply curve of watermelon?

• an increase in consumers' income

• a subsidy given by government on fertilizer and pesticides for watermelon

• a successful advertisement of watermelon

• an increase in the price of watermelon