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Microeconomic Practice

Total questions: 10

Worksheet time: 10mins

Name
Class
Date
1.

An increase in demand and a decrease in supply will cause _______.

a)

Equilibrium quantity decreases

b)

Equilibrium price change is indeterminate

c)

Equilibrium price rises

d)

Equilibrium price falls

2.

The problem of scarcity arises due to _________.

a)

inefficient using resources

b)

government regulation

c)

human being greed

d)

limited available resources

3.

If the price elasticity of supply equals zero, this implies that:

a)

The percentage change in quantity supplied equals the percentage change in product price

b)

The period under consideration is a very long-run time period

c)

Suppliers can easily change the quantity of the product supplied as the price of the product changes

d)

The supply curve is perfectly vertical

4.

Which of the following will cause the supply of potato to decrease?

a)

Consumer’s income decreases

b)

The number of farmers growing potatoes increases

c)

The price of potato decreases

d)

Fertilizer cost increases

5.

“Properties are owned by God and the human are considered as trustees for the property”. Which of the following economic systems is this statement true for?

a)

Socialism

b)

Mixed economic system

c)

Capitalism

d)

Islamic economic system

6.

A good or service that is forgone by choosing one alternative over another is called a (an):

a)

Opportunity cost

b)

Explicit cost

c)

Accounting cost

d)

Implicit cost

7.

When a consumer has the ability and willingness to pay for a goods, this is called ________.

a)

supply

b)

demand

c)

needs

d)

wants

8.

One of the problems created by price floors set above the equilibrium is _______.

a)

surplus happen

b)

price decrease

c)

supply increase

d)

demand increase

9.

Which of the following has a direct relationship with the supply curve?

a)

The number of sellers

b)

Taxes

c)

Resource price

d)

Price of other goods

10.

Which of the following is not the characteristic of a planned economy?

a)

Central planning authority

b)

Advocacy of social justice

c)

Public ownership of resources

d)

Private ownership of resources