1.11 Refer to the table below that describes the income distribution in a country.

Population

Poorest 20%

Next 20%

Next 20%

Next 20%

Richest 20%

cumulative percentage ( population)

20

40

60

80

100

cumulative percentage (income)

5

10

25

60

100

In this country, the richest 40% of the population earn ________ of the total income; whilst the poorest 40% of the population earn ________ of the total income.

A.40%; 15%

B.40%; 10%

C.60%; 15%

D.75%; 10%

E.75%; 15%

1.12 Which of the following statements is true?

A.Despite the problem of scarcity, people do not always want producers to use the most efficient production methods.

B.The problem of scarcity would disappear if the world's population grew to ensure more labour was available.

C.A producer who uses no more resources than it needs must display productive efficiency. D.The world's economies were as integrated 50 years ago as they are today

1.13Which of the following statements is true?

A.Microeconomics is concerned chiefly with the economy as a whole.

B.Macroeconomics is concerned chiefly with individual markets.

C.Governments have no influence over market prices.

D.When economists study the price in a market, their chief aims are to understand why the price is what it is and why it may change.