WorksheetsIntroduction to Microeconomics
Total questions: 35
Worksheet time: 20mins
Which of these is not a decision which is made to solve the basic economic problem?
What to produce
How to produce
Why to produce
For whom to produce
Which of the below is not scarce resource?
Oil
Sea water
Natural gas
Gold
I LOVE ECONOMICS because ...
Economics is FUN
I have no choice, Economics is the only course I can take
Economics solve REAL LIFE problems
Better Economics than Politics
I do not know
Every Sunday morning, we have many alternatives sport such as Running and Playing Football. so, today i choose to play football with my friends, what is the opportunity cost from this case?
Swimming
Golf
Running
Playing Football
If you decide to study an extra hour tonight, what would be the economic outcome?
The marginal cost of studying an extra hour exceeds its marginal benefit.
The marginal benefit of studying an extra hour exceeds its marginal cost.
Studying harder will always improve your test scores.
You will most likely get a lower than expected grade on your last exam.
Which of the following contributed most the failure of command systems, such as the the Soviet Union and Eastern European Communist States?
Previously abundant economic resources became scarce.
Central planners found it increasingly difficult to coordinate the economic decisions of consumers, resource suppliers, and businesses.
Firms manufactured more output than consumers could afford to buy, resulting in a general glut.
Prices were set too low in all markets.
Which of the following primarily encourages innovation and technological advance in the competitive market system?
The government's tax code.
The process of "dollar voting".
The guiding function of consumer needs and preferences.
Profitable returns to innovative firms.
What is the most likely the result of human specialization or the division of labor?
It reduces output by dehumanizing workers
It reduces output by discouraging workers from learning a wide variety of tasks
It increases output by enabling workers to take advantage of differences in their skills
It increases output by allowing workers to each perform a wide variety of tasks
Joe has a limited monthly income of $10,000. He has to make tough choices on his monthly expenditure. If he spends $5,000 on a rental, then that is $5,000 he cannot spend on entertainment.
Which expenditure is the opportunity cost?
$5,000 he manages to save every month
$5,000 he spends on rental
$5,000 he cannot spend on entertainment
$10,000 he receives for his monthly income
What is the basic economic problem?
the value forgone from the next best alternative
the fact that the world has finite resources but humans have infinite wants
too many resources
the fact that the world has infinite resources but humans have finite wants
___________ is attained when maximum output is produced with given resources and technology.
Allocative Efficiency
Productive Efficiency
Technical Efficiency
Distributive Efficiency
_______________ occurs when no resources are wasted.
Allocative Efficiency
Productive Efficiency
Technical Efficiency
Distributive Efficiency
_______ is based on individual initiative and favours market mechanisms over government intervention.
Communism
Capitalism
Socialism
Fascism
What type of a science is economics?
Political
Social
Natural
Physical
What makes economics an art?
Positive statements
Normative statements
Practical use
None of the options
Positive statements are __________ statements
Objective
Subjective
Emotional
Value
What is true about normative statements?
They are objective
They are objective and testable
They are subjective and not testable
All of the options
Which of the following is an example for positive statement?
Petrol price should be decreased by the government
Government ought to provide tax reduction for poor
Price and demand is negatively related
Minimum wage should be increased
Choose the example for normative statement?
The unemployment rate of Oman is the lowest in GCC
India is the second largest populated country in the world
UAE is the richest country in the middle east
Saudi Arabia should provide Hajj subsidy for poor
A situation in which there are not enough resources to meet human wants and needs is referred to as
supply & demand
normative economics
scarcity
positive economics
Which of these best identifies the different between positive economics and normative economics?
Positive economics describes and explains economics as it is and normative economics describes and explains what economics should be, not what it is
Normative economics describes and explains economics as it is and positive economics describes and explains what economics should be, not what it is
There isn't any difference between the two, both terms can be used interchangable to describe and explain economics as it is
There isn't any difference between the two, both terms can be used interchangable to describe and explain what economics should be
Economics can observed as a whole or on an individual basis. The two terms that describe these observations are
macroeconomics and individual economics
government economics and individual economics
macroeconomics and microeconomics
microeconomics and macroeconomics
