1.If the demand for cheesecake decreases when income increases, this means that cheesecake is *

A.a complementary good.

B.a normal good.

C.a luxury good.

D.an inferior good.

2.An increase in both demand and supply of good X will cause *

A.a definite increase in both equilibrium price and quantity.

B.a definite decrease in both equilibrium price and quantity.

C.an decrease in equilibrium quantity, while equilibrium price can increase, decrease or remain the same.

D.an increase in equilibrium quantity, while equilibrium price can increase, decrease or remain the same.

3.If the price of oranges increases from RM5 to RM7 per kg causes quantity demanded to fall from 10,000kg to 5,000kg. Calculate the price elasticity of demand for oranges and its category of elasticity. *

A. - 1.25, elastic

B. -1.25, inelastic

C. -0.25, elastic

D. -0.25, inelastic

4.Which of the following correctly describes the exchanges depicted in the circular flow model diagram? *

A.Households sell factors of production to the business sector and the business sector sells goods and services to households.

B.Households sell goods and services to the business sector and buys factors of production from the government.

C.Households buy factors of production from the business sector and sell goods and services to the business sector.

D.Households and businesses buy goods and services from the government.

5.The total cost of a firm is RM650 and the average fixed cost is RM100. Both costs are for 10 units of output. What is the total variable cost to produce 10 units of output? *

A.RM350

B.RM550

C.RM650

D.RM640