Copy Of Basic Microeconomics ( Final Exmination)

50 Questions

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Copy Of Basic Microeconomics ( Final Exmination)


Questions and Answers
  • 1. 
    1. Human wants are:
    • A. 

      A. relatively limited

    • B. 

      B.  relatively unlimited

    • C. 

      C. easily satisfied

    • D. 

      D. equal to capacity

  • 2. 
    1. Which of the following is an economic resource?
    • A. 

      A. gold

    • B. 

      B. scarcity

    • C. 

      C. labor

    • D. 

      D. rent

  • 3. 
    2. We should not economize if:
    • A. 

      A. If the government printed more money

    • B. 

      B.There was no scarcity

    • C. 

      C. Everyone received a big pay in increase

    • D. 

      D. There was less output of goods and services

  • 4. 
    Economics is the study of how
    • A. 

      A. Scarce resources are used to satisfy unlimited wants

    • B. 

      B. The economy can grow

    • C. 

      C. Limited resources are used to satisfy scarce wants

    • D. 

      D. Price change

  • 5. 
    Which of the following is a part of microeconomics?
    • A. 

      A. Why the price of the durian has fallen?

    • B. 

      B. How high prices are in the economy?

    • C. 

      C.Why unemployment is falling?

    • D. 

      D. How fast an economy’s output is growing?

  • 6. 
    Which of the following is excluded from the discipline social science?
    • A. 

      A. Sociology

    • B. 

      B. Political Science

    • C. 

      C. Economics

    • D. 

      D.Biology

  • 7. 
    The final utilization of goods and services.
    • A. 

      A. Consumption

    • B. 

      B. Production

    • C. 

      C. Exchange

    • D. 

      D. Distribution

  • 8. 
    Good A and B are substitutes for one another. An increase in the price of A will:
    • A. 

      A. Increase the demand for B

    • B. 

      B. Reduce the quantity demanded of B

    • C. 

      C. Increase the demand for A

    • D. 

      D.  Decrease the price for B

  • 9. 
    When quantity demanded is greater than the quantity supplied:
    • A. 

      A. Market price will rise

    • B. 

      B. Market price will fall

    • C. 

      C. Market price will remain unchanged

  • 10. 
    What happens to quantity supplied when price is lowered?
    • A. 

      It rises

    • B. 

      It falls

    • C. 

      Remain unchanged

  • 11. 
    It refers to the total value of all goods and services produced by the citizens within the territory.
    • A. 

      GDP

    • B. 

      GNP

    • C. 

      PCI

  • 12. 
    At equilibrium, quantity demand is _____ equal to quantity supplied.
    • A. 

      A. Sometimes

    • B. 

      B. always

    • C. 

      C. Never

  • 13. 
    Equilibrium price will certainly decrease if:
    • A. 

      A. Supply and demand both increases

    • B. 

      B. Supply increases, demand decreases

    • C. 

      C. Supply and demand both decreases

    • D. 

      D. Supply decreases, demand increases

  • 14. 
    Price is currently below equilibrium. There is a situation of excess ______. We would expect to _______?
    • A. 

      A. demand, rise

    • B. 

      B. demand, fall

    • C. 

      C. supply, rise

    • D. 

      D. supply, fall

  • 15. 
    If the price of a good is above the equilibrium price, which of the following occurs as the market moves to equilibrium?
    • A. 

      A. Demand increases

    • B. 

      B. Supply decreases

    • C. 

      C. The price falls

    • D. 

      D. all alternatives are correct

  • 16. 
    A theory of economic development which gives emphasis on labor:
    • A. 

      A. Karl Marx theory

    • B. 

      B. theory on progress and poverty

    • C. 

      C. innovation theory

  • 17. 
    A science that relates economics because it studies human behavior.
    • A. 

      Sociology

    • B. 

      Philosophy

    • C. 

      Psychology

  • 18. 
    Which of the following markets is closest to a perfectly competitive market?
    • A. 

      A. rice farmer

    • B. 

      B. automobile

    • C. 

      C. steel

    • D. 

      D. cable

  • 19. 
    When price increases, demand will?
    • A. 

      Increase

    • B. 

      Remain unchanged

    • C. 

       decrease

  • 20. 
    It is a place where buyer and seller meet?
    • A. 

      A. market

    • B. 

      B. mall

    • C. 

      C. park

    • D. 

      D. school

  • 21. 
    Human development index will be measured by how many factors?  
    • A. 

      A. 3

    • B. 

      B. 6

    • C. 

      C. 2

    • D. 

      D. 4

  • 22. 
    It denotes to the goods available for sale and or services ready to be offered.
    • A. 

      Goods and services

    • B. 

      Inferior goods

    • C. 

      Substitute goods

  • 23. 
    This model of growth cited the important factor for the production of capital goods which are the use of machineries, buildings and other equipment.
    • A. 

      Ricardian Growth Model

    • B. 

      Kaldor Model

    • C. 

      Harrod-Domar Model

  • 24. 
    A key advantage of partnership over a proprietorship is:
    • A. 

      A. limited liability

    • B. 

      B. division of responsibility

    • C. 

      C. perpetual life of the business firm.

  • 25. 
    1. A business firm with one owner is:
    • A. 

      A. sole proprietorship

    • B. 

      B. partnership

    • C. 

      C. corporation

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