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FORMATIVE ASSESSMENT DPB10053: MICROECONOMICS

Total questions: 15

Worksheet time: 9mins

Name
Class
Date
1.

People need to make a choices in order to maximize their

a)

scarcity

b)


resources

c)

satisfaction

d)

production

2.

"After class, Luth has decided to go to a café to buy lunch for himself". What types of issues happen in an economy

a)

Microeconomics

b)

Socialism

c)

Mixed economics

d)

Macroeconomics

3.

In a mixed economic system, economic problems are solved by the public

a)

True

b)


False

4.

The quantity supply goods S in the market increases as a result of

a)

export of goods S decrease

b)

imports of goods S increased

c)

price increase of goods S

d)

increase in production technology

5.

Any decrease in the supply quantity of a product due to its price reduction will be shown by

a)


an upward movement along the supply curve

b)

a shift of the supply curve to the left

c)

a downward movement along the supply curve

d)

a shift of the supply curve to the right

6.

The demand function for goods X is given as Qd = 750 - 2P and the supply function is Qs = 500 + 3P. Calculate the price of equilibrium for goods X.

(a)  

7.

What is the meaning of 'Ceiling Price'?

a)

The government imposes a maximum price that prevents certain prices from rising above that price.

b)

The government provides incentives to the seller or producer to produce more goods.

c)

The government sets a minimum price that prevents certain prices from falling below that price.

d)

The government imposes a certain amount to be produced by the seller or producer.

8.

Given the demand function is Qd = 200 - 5P and supply function is Qs = 100 + 5P. What is the quantity equilibrium?

(a)  

9.

Based on a survey, the income elasticity of demand for the iPad Mini is 1.4. This shows that the iPad Mini

a)

is a normal goods

b)


is a substitutes goods

c)

is a luxury goods

d)


is a necessity goods

10.

A mother who buys her son two sets of school uniforms every year regardless of changes in their prices has a perfectly inelastic demand for school uniforms

a)

TRUE

b)


FALSE

11.

The following table shows production of output at several levels of labor

At 2nd labor level, the average production is ____________ units

a)

72

b)

73

c)

74

d)

75

12.

A firm will experience lower long-run average costs when its production increases. This is because _____________

a)

fixed factors are utilized efficiently

b)

the firm enjoys the benefits of economic of scale

c)

the firm can prevent other firms from entering the market

d)

the firm receives financial assistance from the government

13.

Irham Holding has RM3,000 of variable costs and RM800 of fixed costs when its output is 200 units. Calculate the average total cost at this output level.

a)

RM11

b)

RM13

c)

RM15

d)

RM19

14.

Show which of the following as an example of a barrier to entry in a monopoly market?

a)

Johnny obtained a copyright for the song he wrote and recorded

b)

Mark charges a lower price to students than to faculty for his printing services

c)

Lily offered free samples of her latest flavored coffee drink to entire customers to buy a cup

d)


Brian charges a higher hourly price to business students than to liberal arts students for his economics tutoring

15.

If a perfectly competitive firm is confronted with an equilibrium price of RM5, its marginal revenue

a)


may be either greater or lesser than RM5

b)

will be lesser than RM5

c)

will also be RM5

d)

will be greater than RM5