Micro Activity

1.     THE SOURCE OF THE HOUSEHOLDS’ INCOME IS MIGHT TO BE:

• A)   Rent

• B)   Wages

• C)   Interest

• D)   All of the above

    WHICH OF THE FOLLOWING IS A MICROECONOMIC TOPIC?

• A)   the reasons for a decline in average prices

• B)   the reasons why Kathy buys less orange juice

• C)   the cause of why total employment may decrease

• D)   the effect of the government budget deficit on inflation

The supply curve of product X moves to the left just if ....

• The production costs increase

• The level of technology improves

• The price of product X increases.

• The price of product X decreases.

If the government imposed a ceiling price of 10 EGP; knowing that the market price is 15 EGP then, the market would suffer:

• A surplus

• A shortage

• A decrease in supply

• No effect

Factors of production include all of the following EXCEPT

• A machines made in past years.

• Taxes

• an wheat field that is not irrigated.

• entrepreneurship

Periods of full employment correspond to

• Points outside the PPF.

• Points inside the PPF.

• Points on the PPF

• Either points inside or outside the PPF

Economists point out that scarcity confronts

• the rich but not the poor

• the poor but not the rich

• both the poor and the rich

• neither the poor nor the rich

In the mixed economy

• economic problems are solved by the government and market

• economic decisions are made by the private sector and free market

• economic allocation is achieved by the invisible hand

• economic questions are solved by government departments