14X1=14

1. Which one of the following do economists notassume to be true of economic behavior?

A.Consumers and producers have clear objectives.

B.Consumers seek to obtain as much satisfaction as possible.

C.Producers seek to obtain as much profit as possible.

D.Consumers and producers are more concerned with the interests of others than with their own interests.

2. Which one of the followings is not focused in microeconomics?

A. households

B. business firms

C. unemployed people

D. the division of labor

3. Which one of the following is nota basic question confronting all economic societies?

A. What shall be produced?

B. How should markets be made competitive?

C. For whom shall goods be produced?

D. How is output to be produced?

4.Refer to the production possibilities graph shown below. At Point A, the economy:

A. is not using its resources efficiently.

B. is using its resources efficiently while producing clothing but no food.

C. is using its resources efficiently while producing food but no clothing.

D. is using its resources efficiently to produce both food and clothing.