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PEC2174- MICROECONOMICS

Total questions: 20

Worksheet time: 10mins

Name
Class
Date
1.

Economics is the study of how __________________________.

a)

we choose to use unlimited resources.

b)

unlimited resources are used to satisfy scarce wants.

c)

society uses abundant resources to satisfy unlimited desires.

d)

scarce resources are used to satisfy unlimited wants.

2.

Economic problem arises due to

a)

Limited resources

b)

Unlimited wants

c)

Alternative uses of resources

d)

All of the above

3.

Refer to the study of the economic behaviour of individual components like industries, firms, and households.

a)

Macroeconomics

b)

Consumer Behaviour

c)

Microeconomics

d)

Positive Economics

4.

It is the main reason why there is a study of microeconomics.

a)

Resources

b)

Scarcity

c)

Household

d)

Profit

5.

The following are the factors of production, except:

a)

Land

b)

Labor

c)

Fish Pond

d)

Capital

6.
Law of demand says if the price of pizza falls, the demand for pizza will what?
a)
Increase
b)
Decrease
7.

When the population in a city increases, the demand will: increase or decrease?

a)
Increase
b)
Decrease
8.
A necessity is something we need to live. Which answer describes a necessity?
a)
Food
b)
School
9.

Microeconomics deals with

a)

Government intervention

b)

individual choice

c)

All of the above

10.

The fact that human wants cannot be fully satisfied with available resources is called problem of __________________.

a)

scarcity

b)

choices.

c)

opportunity cost.

d)

none of the above.

11.

All the following are the Basic Economic Problems EXCEPT ________________.

a)

What product should be produce?

b)

Where product should be produce?

c)

For whom product should be produce?

d)

How product should be produce?

12.

In order to save cost, the “Milk Industry” should use more labour than machine. This statement refers to ______________.

a)

What product should be produce?

b)

Where product should be produce?

c)

For whom product should be produce?

d)

How product should be produce?

13.

Wants are

a)

Things you essential for survival

b)

Food, clothing, shelter

c)

Desires that are not essential to survive

d)

Air, water, food

14.

Which of the following would be studied in microeconomics?

a)

Total numbers of workers employed in a country

b)

The general level of prices in the Malaysian economy

c)

The output of the entire economy

d)

The output and price of chicken in Malaysia

15.
In which market structure is there the MOST competition?
a)
Monopoly
b)
Oligopoly
c)
Monopolistic Competition
d)
Perfect Competition
16.
In which market structure is there the LEAST competition?
a)
Monopoly
b)
Oligopoly
c)
Monopolistic Competition
d)
Perfect Competition
17.
Which type of market structures has many many producers(companies) that sell identical products and has no control over price?
a)
perfect competition
b)
monopolistic competition
c)
oligopoly
d)
monopoly
18.
Which type of market structures has very few producers(companies) that control the majority of the market?
Hint: think of the soda market
a)
perfect competition
b)
monopolistic competition
c)
oligopoly
d)
monopoly
19.
What is not part of perfect competition?
a)
buyer/ seller are well informed
b)
sellers cannot enter/ exit market easily
c)
low prices
d)
few barriers of entry
20.
When a major car company lowers its prices, other car makers will probably 
a)
maintain existing prices.
b)
raise their prices.
c)
go out of business.
d)
lower their prices.