AED 1163 Quiz 1

At market equilibrium point ....

• Qd = Qs

• Qd > Qs

• Qd < Qs

• Pd = Ps

If market price is higher than equilibrium price ......

• Price of that product will constant

• Price of that product will increase

• Price of that product will decrease

• Price of that product can't be identify

Economic resources are ....

• Land

• Labour

• Capital

• Entrepreneur

Which factors can shift a Production Possibility Curve (PPC)?

• Population

• Economic growth

• Political conflict

• Technological Advancement

Which of the following will make demand curve for chicken move to the right?

• Number of seller increase

• decreasing in cost of production

• consumers' income decrease

• price for meat increase

Which of the following will make supply curve for chicken move to the left?

• Number of seller decrease

• Cost of production decrease

• Price for meat decrease

• Price for chicken decrease

Choose 3 characteristics of capitalism economy.

• Public ownership of resources

• The equal income distribution

• role of self interest

• Existence of consumer sovereignty

• Freedom of enterprise and choice

Choose 2 characteristics of socialism economy.

• Economic decisions are made by government

• No business freedom

• Private ownership of resources

• Competition

Choose 2 merits of capitalism economy.

• Productive efficiency

• no serious recession or unemployment

• Automatic working

• optimum utilization of resources

Choose a correct statement about a given diagram

• at price RM 14, there is a shortage of RM12

• at price RM 8, price will increase.

• If government enact price at RM 14, it will be called price ceiling/maximum price

• at RM 4, there is a shortage of RM11