An Introduction To Microeconomics Quiz!

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An Introduction To Microeconomics Quiz! - Quiz

This is an introduction to microeconomics quiz. The study of microeconomics is a branch of economics. It's the study of how we produce, distribute, and consume goods and services, but the difference is that microeconomics looks at how an individual or firm might decide to allocate scarce resources. It may seem like a daunting topic to behold when starting, but a little research will show you how valuable it can be. Take this introduction quiz to find out more.


Questions and Answers
  • 1. 

    Microeconomics focuses on ...................................... .

    • A.

      Issues such as economics growth, inflation and unemployment

    • B.

      The working of the whole economy

    • C.

      Factors that affect the total demand for goods and services

    • D.

      The behavior of individuals and organizations towards scarce resources

    Correct Answer
    D. The behavior of individuals and organizations towards scarce resources
    Explanation
    Microeconomics focuses on the behavior of individuals and organizations towards scarce resources. This branch of economics studies how individuals and firms make decisions regarding the allocation of resources in order to satisfy their needs and wants. It examines topics such as supply and demand, pricing, production, market structures, and consumer behavior. By understanding individual choices and their impact on resource allocation, microeconomics provides insights into how markets function and how economic efficiency can be achieved.

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  • 2. 

    The study of how prices are set for certain goods would be considered as an issue in ......................... .

    • A.

      Macroeconomics

    • B.

      Microeconomics

    • C.

      Descriptive economics

    • D.

      Normative economics

    Correct Answer
    B. Microeconomics
    Explanation
    The study of how prices are set for certain goods falls under the purview of microeconomics. Microeconomics focuses on individual markets, businesses, and consumers, examining how they interact and make decisions. Understanding how prices are determined for specific goods requires analyzing supply and demand dynamics, market competition, and factors influencing consumer behavior. This is a microeconomic issue as it involves examining the specific economic behavior and decisions of individual agents within the economy.

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  • 3. 

    Which of the following is concerned with microeconomics?

    • A.

      The unemployment rate decrease by 30%.

    • B.

      In 1994, the national income of a country is RM23, 400.00 million.

    • C.

      The price of chicken increases significantly during Hari Raya season.

    • D.

      The economic growth of the country is expected to be 6% in 1995.

    Correct Answer
    C. The price of chicken increases significantly during Hari Raya season.
    Explanation
    The price of chicken increasing significantly during Hari Raya season is concerned with microeconomics because it focuses on the specific market for chicken and how changes in supply and demand affect its price. Microeconomics studies the behavior of individual consumers and firms and how their decisions impact the allocation of resources in specific markets. In this case, the increase in price is likely due to an increase in demand for chicken during Hari Raya, leading to a shift in the market equilibrium.

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  • 4. 

    “We cannot have all the things we want. The resources available to satisfy our wants are, at any time, limited in supply”. The above statement reflects the concepts of:

    • A.

      Opportunity cost

    • B.

      Choice

    • C.

      Scarcity

    • D.

      Unemployment

    Correct Answer
    C. Scarcity
    Explanation
    The statement suggests that there are limited resources available to satisfy our wants, implying that there is scarcity. This means that we cannot have everything we want because there are not enough resources to fulfill all our desires. The concept of scarcity is closely related to the idea of choice, as we have to make decisions about what we prioritize and allocate our limited resources towards. It is not directly related to unemployment or opportunity cost.

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  • 5. 

    Economics behavior such as choice is the result of .................................. .

    • A.

      Human greed

    • B.

      Scarcity

    • C.

      Poverty

    • D.

      Private ownership of resources

    Correct Answer
    B. Scarcity
    Explanation
    Economics behavior such as choice is the result of scarcity. Scarcity refers to the limited availability of resources compared to the unlimited wants and needs of individuals. This scarcity forces individuals to make choices and prioritize their needs and wants based on the available resources. The concept of scarcity is fundamental in economics as it influences decision-making, allocation of resources, and the study of supply and demand.

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  • 6. 

    A graph showing all the combinations of good and services that can be produced if a society’s resources are used efficiently is the

    • A.

      Demand curve

    • B.

      Production possibility curve

    • C.

      Supply curve

    • D.

      Price consumption curve

    Correct Answer
    B. Production possibility curve
    Explanation
    A production possibility curve represents the different combinations of goods and services that can be produced given a society's limited resources and technology. It shows the maximum output that can be achieved by efficiently allocating these resources. The curve illustrates the concept of trade-offs, as producing more of one good requires sacrificing the production of another. Therefore, the correct answer is the production possibility curve.

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  • 7. 

    The production possibility curve illustrates the basic principles that

    • A.

      An economy’s capacity to produce increases in proportion to its population size

    • B.

      When all the resources are in use, more of a good can be produced only if none of another is produced

    • C.

      An economy will automatically seek full employment level of output

    • D.

      When resources are efficiently used more of a good can only be produced if less of another is produced

    Correct Answer
    D. When resources are efficiently used more of a good can only be produced if less of another is produced
    Explanation
    The correct answer states that when resources are efficiently used, more of a good can only be produced if less of another is produced. This implies that there is a trade-off between producing different goods. When resources are allocated efficiently, producing more of one good requires diverting resources from producing another good. This principle is illustrated by the production possibility curve, which shows the maximum combination of goods that an economy can produce given its resources and technology. As the production of one good increases, the production of another good must decrease to maintain efficiency.

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  • 8. 

    A point inside a production possibilities curve may indicate:

    • A.

      Full employment

    • B.

      Using the best available technology

    • C.

      Efficient allocation of resources

    • D.

      Factors of production are not fully utilized

    Correct Answer
    D. Factors of production are not fully utilized
    Explanation
    A point inside a production possibilities curve indicates that the factors of production are not fully utilized. This means that there is potential for increased production and efficiency within the economy. The resources and labor available are not being fully employed, leading to a suboptimal allocation of resources. This could be due to various reasons such as inefficiencies in the production process, lack of demand for certain goods or services, or inadequate utilization of available technology.

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  • 9. 

    Which of the following represents a point lying outside the production possibility curve?

    • A.

      Unemployment

    • B.

      High prices

    • C.

      Increasing cost

    • D.

      Unattainable production in combination of two goods

    Correct Answer
    D. Unattainable production in combination of two goods
    Explanation
    Unattainable production in combination of two goods represents a point lying outside the production possibility curve. This means that the economy is unable to produce the combination of goods due to resource constraints or inefficiencies. This could be caused by a lack of resources, technology, or other factors that limit the production capacity.

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  • 10. 

    Which of the following cannot be considered as a basic economic problem?

    • A.

      What to produce

    • B.

      Why produce

    • C.

      How much to produce

    • D.

      How to produce

    Correct Answer
    B. Why produce
    Explanation
    The question asks which option cannot be considered as a basic economic problem. "Why produce" cannot be considered as a basic economic problem because it is not a question related to the allocation of resources or the scarcity of goods and services. The other options, such as "What to produce," "How much to produce," and "How to produce," all relate to the fundamental economic problem of resource allocation and scarcity.

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  • Current Version
  • Jan 11, 2024
    Quiz Edited by
    ProProfs Editorial Team
  • Jun 27, 2013
    Quiz Created by
    Sajamoon
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