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C1 : SET 3 - INTRODUCTION TO MICROECONOMICS

Total questions: 10

Worksheet time: 3mins

Name
Class
Date
1.

Macroeconomics theory studies determine the following EXCEPT;

a)

The equilibrium income in an economy

b)

Types and quantities of goods produced

c)

The unemployment and inflation rate

d)

International trade activities

2.

If Firm X is in the free market system, which of the following economic issue can solve with the “what and how much” product to produce?

a)

Consumer demand

b)

Market mechanism

c)

Consumer purchasing power

d)

Consumer taste

3.

Which of the following means “individual could not meet all needs with limited resources"?

a)

Scarcity

b)

Choices

c)

Scarcity

d)

Desire

4.

Which the following does NOT illustrate opportunity cost?

a)

If I spent more on food, I must spend less on clothes.

b)

If I buy computer, I could nit own on a 29” television.

c)

If I study today, I must give up going to the football game.

d)

If I buy book, I also can buy new shoes.

5.

Microeconomics is concerned with _____________________.

a)

the entire economics system.

b)

specific units of the economics system.

c)

the changes in the overall level of economic activities.

d)

stimulating economic growth.

6.

The economic problems of scarcity refer to _______________.

a)

limited wants and limited resources.

b)

unlimited wants and unlimited resources.

c)

unlimited wants and limited resources.

d)

limited wants and unlimited resources.

7.

Which of the following is Socialism benefit?

a)

Encourage mass production.

b)

Increase individual effort.

c)

Lack of competition.

d)

Decisions are made quickly.

8.

Government intervention is necessary in the economy because _________________.

a)

the government wishes to overcome weaknesses in the free market economy.

b)

the government has power of monopoly.

c)

the government has interests in the specific sector.

d)

the government wishes to share with the private sector.

9.

Economics is defined as ___________________.

a)

a study of social science that studies man’s behavior in the distribution of limited factors of production.

b)

a study if the behavior of individuals in the determination of the optimum level of production at the minimum cost.

c)

the science of wealth in a community, focus on the distribution of factors production an income.

d)

a study of social science that focuses on behavior of individuals in the allocation of limited production factors to fulfill unlimited wants.

10.

Opportunity cost is defined as ________________.

a)

the cost of the second best option that will have to be forgone in order to select the best option.

b)

the fixed cost involved in the short term.

c)

the cost used in a factor of production.

d)

the cost related to the optimum level of production.