REVISION PRINCIPLES OF ECONOMICS

Which statement is TRUE about microeconomics?

• Employment/ unemployment.

• Effect on price of a good.

• Productive capacity of economy.

• Whole economy (GDP).

"Individual and firms have freedom of choice". This refers to

• Mixed economic system

• Islamic economic system

• Free market economic system

• Centrally planned economic system

"These goods are used together to complete the function of the other object"

The demand curve has a gentle slope (flatter). This refers to

• Inelastic demand

• Elastic demand

• Unitary elastic demand

• Perfectly inelastic demand

Define sunk cost.

• Value of input services which are used in the market are nor purchase in the market.

• Value of the next best use of a resource.

• Refers to the cost that firm cannot recover.

• Value of resources purchased of production.

State the payment/rewards for labour

"Few firms produce either identical or differentiated product and entry is a bit difficult"

Components of macroeconomics are as below, EXCEPT:

• firms

• household

• government

• individual

"Measures national income by adding all the various types of income paid to firms and households in the form of wages, profit, labour, rent and interest". This refers to ______ approach.

The real GDP declines in what stage?

• Peak

• Trough

• Recovery

• Recession