WorksheetsONLINE INDIVIDUAL ASSIGNMENT
Total questions: 40
Worksheet time: 40mins
Name
Class
Date
1.
Which of the following best describes the focus of microeconomics?
a)
Measuring national income
b)
Studying government budget deficits
c)
Analyzing how individual households and firms make decisions
d)
Examining international trade patterns
2.
Which of the following is a microeconomic issue?
a)
Unemployment rate in a country
b)
Price determination of iPhones
c)
Fiscal policy changes
d)
Inflation rate
3.
Scarcity arises because:
a)
People have limited wants
b)
Resources are unlimited
c)
Resources are limited and wants are unlimited
d)
Prices are too high
4.
Which of the following is NOT a factor of production?
a)
Land
b)
Labor
c)
Capital
d)
Money
5.
Opportunity cost can best be described as:
a)
The amount of money spent on an item
b)
The next best alternative foregone
c)
All possible alternatives
d)
A free good's value
6.
A student chooses to attend university instead of working full-time. The opportunity cost is:
a)
Tuition fees paid
b)
Money spent on books
c)
Wages from the full-time job foregone
d)
Satisfaction from learning
7.
If the government spends RM1 million on military, it cannot spend that RM1 million on education. This is an example of:
a)
Marginal cost
b)
Free market allocation
c)
Price mechanism
d)
Opportunity cost
8.
A point inside the PPC indicates:
a)
Efficient use of resources
b)
Unattainable output combination
c)
Unemployment or underutilization of resources
d)
Maximum production
9.
A PPC is bowed outwards due to:
a)
Equal opportunity cost
b)
Law of increasing opportunity cost
c)
Decreasing marginal returns
d)
Technological stagnation
10.
A shift of the PPC outward can be caused by:
a)
Higher unemployment
b)
Natural disaster
c)
Technological advancement
d)
Decrease in capital
11.
In a command economy, decisions about production and distribution are made by:
a)
Individual consumers
b)
Private firms
c)
The government
d)
Market forces
12.
Which of the following is a disadvantage of a mixed economic system?
a)
Lack of government intervention
b)
Total economic freedom
c)
Inefficiencies due to overlapping control
d)
No public goods provision
13.
Which economic system is most prone to resource misallocation due to lack of price signals?
a)
Free market
b)
Mixed economy
c)
Command economy
d)
Capitalist economy
14.
Which of the following features is unique to a market economy?
a)
Government ownership of resources
b)
Central planning
c)
Profit motive and price mechanism
d)
Fixed prices
15.
The law of demand states that:
a)
As price increases, quantity demanded increases
b)
As price increases, quantity demanded decreases
c)
Price has no effect on quantity demanded
d)
Demand remains constant over time
16.
A change in quantity demanded is caused by:
a)
Change in income
b)
Change in price of the good
c)
Change in taste
d)
Change in expectations
17.
If the price of Coca-Cola rises, the demand for Pepsi increases. This indicates the two goods are:
a)
Complements
b)
Substitutes
c)
Inferior goods
d)
Giffen goods
18.
Which of the following will increase the demand for smartphones?
a)
Increase in price of smartphones
b)
Increase in consumer income
c)
Introduction of a new tax on electronics
d)
Increase in production cost
19.
A shift to the right of the demand curve means:
a)
Quantity demanded has fallen
b)
Price has decreased
c)
Demand has increased
d)
The good has become inferior
20.
Which of the following would decrease the demand for movie tickets?
a)
Increase in population
b)
Reduction in ticket price
c)
Introduction of free home streaming services
d)
Increase in cinema quality
21.
Demand for an inferior good will:
a)
Increase as income rises
b)
Decrease as income rises
c)
Stay the same regardless of income
d)
Shift randomly
22.
The law of supply states that:
a)
Price and quantity supplied move in opposite directions
b)
As price rises, quantity supplied rises
c)
Price does not affect supply
d)
Supply increases as demand falls
23.
Which of the following leads to a movement along the supply curve?
a)
Change in technology
b)
Change in price of the good itself
c)
Change in number of sellers
d)
Change in production tax
24.
Which of the following would shift the supply curve to the left?
a)
Technological improvement
b)
Decrease in input costs
c)
Increase in wages paid to workers
d)
Entry of new producers
25.
A subsidy given to farmers will likely:
a)
Decrease supply
b)
Increase supply
c)
Have no impact on supply
d)
Shift demand curve
26.
Supply of oranges will likely decrease if:
a)
Fertilizer cost drops
b)
A new pesticide is developed
c)
There's a drought
d)
Orange prices rise
27.
What happens to supply when the government imposes a tax on production?
a)
Supply increases
b)
Supply decreases
c)
Supply remains unchanged
d)
Demand increases
28.
A rightward shift in the supply curve means:
a)
More is supplied at every price
b)
Prices must be lower
c)
Less is produced
d)
Demand must increase
29.
Market equilibrium occurs when:
a)
Price is zero
b)
Quantity demanded equals quantity supplied
c)
Supply is greater than demand
d)
Demand is higher than supply
30.
If the market price is below equilibrium:
a)
Quantity supplied will exceed quantity demanded
b)
Surplus will occur
c)
Shortage will occur
d)
Price will remain unchanged
31.
At the equilibrium price:
a)
There is always surplus
b)
There is no incentive for price change
c)
Government must intervene
d)
Quantity supplied is less than demanded
32.
A price ceiling set below equilibrium causes:
a)
Surplus
b)
Shortage
c)
No effect
d)
Price to rise
33.
A price floor set above the equilibrium price will result in:
a)
Shortage
b)
Surplus
c)
Equilibrium
d)
Black market
34.
Minimum wage is an example of a:
a)
Price ceiling
b)
Price floor
c)
Tax
d)
Subsidy
35.
Rent control is an example of:
a)
Price floor
b)
Subsidy
c)
Price ceiling
d)
Equilibrium policy
36.
Government-imposed tax on producers shifts the supply curve:
a)
Rightward
b)
Leftward
c)
No shift
d)
Vertical
37.
A subsidy to consumers of electric cars will likely:
a)
Reduce demand
b)
Reduce supply
c)
Increase demand
d)
Shift supply left
38.
Which of the following is a reason governments impose subsidies?
a)
Increase prices
b)
Reduce competition
c)
Encourage consumption of certain goods
d)
Reduce imports
39.
Which of the following is a likely unintended consequence of price ceiling?
a)
High-quality goods in the market
b)
Excess supply
c)
Black markets
d)
Higher producer profits
40.
When a subsidy is removed, what is the likely effect on market price?
a)
It decreases
b)
It remains constant
c)
It increases
d)
It fluctuates
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