1.- Microeconomics studies the behavior of the simplest units

• a) True

• b) False

2.- The microeconomics studies the households

• a) True

• b) False

3.- Microeconomics is responsible for studying and establishing the decisions they face on a day-to day basis regarding this reality and describes the best way to maximize their economic well-being.

• a) True

• b) False

4.- Macroeconomics isn’t the branch of economics that deals with the structure

• a) True

• b) False

5.- The demand is an economic principle referring to a consumer’s desire to purchase goods and services

• a) True

• b) False

6.- Supply in economics states that as the price of a good or service increases, the quantity of goods or services increases and vice versa.

• a) True

• b) False

7.- A product is considered to be elastic if the quantity demand of the product changes more that proportionally when its price increases or decreases.

• a) True

• b) False

8.- The airline industry is elastic because it is a competitive industry

• a) True

• b) False

9.- Gasoline is an example of a relatively inelastic good because many consumers have no choice but to buy fuel for their vehicles, regardless of the market price.

• a) True

• b) False

10.- If price increases the supply is ____ and the demand is _______

• a) High and low

• b) Low and high

• c) Low and low

• d) High and high