FORMATIVE ASSESSMENT DPB10053: MICROECONOMICS

People need to make a choices in order to maximize their

• scarcity

• 
  resources

• satisfaction

• production

"After class, Luth has decided to go to a café to buy lunch for himself". What types of issues happen in an economy

• Microeconomics

• Socialism

• Mixed economics

• Macroeconomics

In a mixed economic system, economic problems are solved by the public

• True

• 
  False

The quantity supply goods S in the market increases as a result of

• export of goods S decrease

• imports of goods S increased

• price increase of goods S

• increase in production technology

Any decrease in the supply quantity of a product due to its price reduction will be shown by

• 
  an upward movement along the supply curve

• a shift of the supply curve to the left

• a downward movement along the supply curve

• a shift of the supply curve to the right

The demand function for goods X is given as Qd = 750 - 2P and the supply function is Qs = 500 + 3P. Calculate the price of equilibrium for goods X.

(a)  

What is the meaning of 'Ceiling Price'?

• The government imposes a maximum price that prevents certain prices from rising above that price.

• The government provides incentives to the seller or producer to produce more goods.

• The government sets a minimum price that prevents certain prices from falling below that price.

• The government imposes a certain amount to be produced by the seller or producer.

Given the demand function is Qd = 200 - 5P and supply function is Qs = 100 + 5P. What is the quantity equilibrium?

(a)  

Based on a survey, the income elasticity of demand for the iPad Mini is 1.4. This shows that the iPad Mini

• is a normal goods

• 
  is a substitutes goods

• is a luxury goods

• 
  is a necessity goods

A mother who buys her son two sets of school uniforms every year regardless of changes in their prices has a perfectly inelastic demand for school uniforms

• TRUE

• 
  FALSE