Revision IMU453

"A situation where buyers are willing to buy goods and services and sellers are simultaneously willing to sell the goods and services.". This definition is referring to...................

• Market demand

• Market Equilibrium

• Market supply

• Comperative advantage

Which of the following is NOT factors that can shift the supply curve?

• Level of technology

• Government or economic policy

• Consumer's Taste and Preferences

• Number of suppliers

Which of the following are the advantages of international trade? Select 2 answers only

• Transportation cost

• Variety of goods

• Empower world output efficiency

• Depletion in country's reserve

Which of the following are the uses of national income? Select 3 answers

• Standard of living indicators

• Government planning and policies

• Fulfill consumer's self interest and satisfaction

• International comparisons

Which of the following is NOT CORRECT in quantitative monetary instruments that applied in economic.

• Discount rate

• Open market operation

• Selective credit control

• Legal cash reserve ratio

Choose 2 qualitative monetary policy to control inflation.

• Selective credit control

• Special directive

• Open market transaction

• Selling securities of government to the public

Which of the following is correct about perfect competition? Choose 2 answers

• Very easy to entry

• Unique products

• Inelastic of demand and supply

• Price taker

Which of the following are NOT CORRECT about monopoly? Choose 2 answers

• Price maker

• Price taker

• Earn supernormal profit because of high barrier to entry

• Selling Homogenous product

Choose 2 correct answers about the difference between short run and long run in theory of production.

• land and capital is fixed input in short run while in the long run, it becomes variable input

• short run is all variable input

• in short run, firm cannot increase its production

• in long run, there is at least 1 fixed input.

Which of the following is NOT CORRECT about the importance of law of diminishing marginal return.

• Avoid excessive labour costs and inefficiencies

• Essential for profit maximization and cost control

• Helps firm identify the optimal level of input usage

• Helps in planning and government policies