answer the questions

SECTION A :MULTIPLE CHOICE QUESTION (25MARKS) ANSWER ALL QUESTIONS 1. Microeconomics is concerned with A. the aggregate or total levels of income, employment, and output B. a detailed examination of specific economic units that make up the economic system C. positive economics, but not normative economics D. the establishing of an overall view of the operation of the economic system 2. When economists say that people act rationally in their self interest, they mean that individuals A. look for and pursue opportunities to increase their utility B. generally disregard the interests of others C. are mainly creatures of habit D. are usually impulsive and unpredictable 3. When economists describe "a market," they mean A. a place where stocks and bonds are traded B. a communication network that allow individuals to keep in touch with each other C. a hypothetical place where the production of goods and services takes place D. a system that allows buyers and sellers to interact with one another 4. Which of the following statements is true? A. Microeconomics focuses on specific decision-making units of the economy; macroeconomics examines the economy as a whole. B. Macroeconomics focuses on specific decision-making units of the economy; microeconomics examines the economy as a whole. C. Every topic in economics is either a microeconomic or a macroeconomic issue; a topic cannot be both. D. Topics in microeconomics have public policy implications; topics in macroeconomics do not. 5. If the price of apple pies rose to $100 per pie, consumers would purchase fewer pies than if the price were $5 per pie. If the price of ice cream fell to $0.30 per scoop, consumers would purchase more ice cream than if the price were $5 per scoop. These relationships illustrate the A. law of demand. B. law of supply. C. difference between normal and inferior goods. D. difference between substitute and complement goods. 6. The greater the price elasticity of demand, the A. more likely the product is a necessity B. smaller the responsiveness of quantity demanded to a change in price C. greater the percentage change in price over the percentage change in quantity demanded D. greater the responsiveness of quantity demanded to a change in price