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"

(a)  

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

(a)  

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

(a)  

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 (a)   approach.

The real GDP declines in what stage?

• Peak

• Trough

• Recovery

• Recession