1.Branch of economics that deals with economic theory and economic decisions of large bodies like the government is called as Microeconomics.

True

False

2.WHY THE DEMAND CURVE SLOPES DOWNWARDS?

A. INTEREST AND DISINTEREST EFFECT

B. COST AND PRICE EFFECT

C. COMPLEMENT AND SUBSTITUTION EFFECT

3.The true cost of choosing one alternative over the other is called as opportunity cost.

True

False

4.Exports are an ____________

A. Inspection

B. Invention

C. Institution

D. Injection

5.A government budget in which expenditures exceed tax revenues is Budget deficit.

True

False

6.The inflation rate is the percentage increase in average level of prices.

True

False