MICROECONOMIS

Multiple Choice Questions (MCQ). Choose the best answer.

Estimated Time:
(20 items: 2-3 minutes per question; Average: 40-60 minutes)

1.What is microeconomics?

a. The field of economic study concerned with the interactions of producers

and consumers in markets
b. Society gets the most from its scarce resources
c. A situation in which there is not enough of a resource to meet all of
everyone's wants
d. Individuals provide labor for factor markets and buy goods in product
markets

2. Which of the following terms would be LEAST associated with a

producer?

a. Purchase
b. Demand
c. Price
d. Effect

3. How do individuals contribute to the circular flow of economic

activity?

a. Individuals provide labor for factor markets and buy goods in product
markets
b. The branch of economics that studies the choices of individual units-
including households, business firms, and government agencies
c. The basic imputes of labor, capital, and natural resources used in
producing all goods and services
d. None of the above
4. How do individuals contribute to the circular flow of economic
activity?

a. Factors of production
b. Efficiency
c. Sustitution effect
d.Demand

5. The limited nature of society's resources

a. Scarcity
b.Supply
c.Demad
d.Price

6.What would be the BEST label name for C?

*Hint: Pay careful attention to the location of the firms, households,
product market, and resource market.

a. Goods and services

b. Elasticity
c. Surplus
d. Price

7. Which of the following is an example of a free good?

a.Sea water
b.Fire
c.Rock
d. All of the above

8. Any situation where people buy and sell goods

a. Market
b. market demand schedule
c. Consumer surplus
d. Elasticity of Demand
9. Are determined by what gets produced

A Prices
b.Market Price
c.Substitution Effect
d Demand

10. The desire to have a good or service and the ability to pay for it

a. Demand
b, Law of Demand
c, Income Effect
d. None of the above

11. The work time and work effort that people devote to producing goods
and services is _____________.

a. Labor
b. Capital
c. Entrepreneurship
d. Land

12. The tools, instruments, machines, buildings, and other

constructions that businesses use to produce goods and services are
___________.

a. Labor
b. Capital
c. Entrepreneurship
d. Land

13. The human resource that organizes land, labour, and capital is
___________________ .

a. Labor
b. Capital
c. Entrepreneurship
d. Land
14. The “gifts of nature” that we use to produce goods and services
are _____________.

a. Labor
b. Capital
c. Entrepreneurship
d. Land

15. Which is not a key ideas define the economic way of thinking:

a. Abundance mentality can be a choice.

b. A choice is a tradeoff.
c. People make rational choices by comparing benefits and costs.
d. Benefit is what you gain from something.

16. A _______________ can be tested by checking it against facts.

a. Normative statement
b. Positive statement
c. Negative statement
d. Public Statement

17. A ________________ an opinion and cannot be tested.

a. Normative statement
b. Positive statement
c. Negative statement
d. Public Statement
18. Earnings of economics majors vary a lot depending on the job and
the ________________________.

a. Economic factors
b. Opportunity costs to be considered.
c. Connection on government
d. Level of qualifications.

19. This is the skill or the ability to clarify and solve problems using
logic.

a. Critical-thinking
b. Analytical skills
c. Math skills
d. Oral communication skills

20. The ability to use economic tools to examine data, see patterns,
and reach logical conclusions.

a. Critical-thinking
b. Analytical skills
c. Math skills
d. Oral communication skills