MICROECONOMIS

Multiple Choice Questions $($MCQ$).$ Choose the best answer.

Estimated Time:

$(20$ items: $2-3$ minutes per question; Average: $40-60$ minutes$)$

$1.$What is microeconomics?

a$.$ The field of economic study concerned with the interactions of producers

and consumers in markets

b$.$ Society gets the most from its scarce resources

c$.$ A situation in which there is not enough of a resource to meet all of

everyone's wants

d$.$ Individuals provide labor for factor markets and buy goods in product

markets

$2.$ Which of the following terms would be LEAST associated with a

producer?

a$.$ Purchase

b$.$ Demand

c$.$ Price

d$.$ Effect

$3.$ How do individuals contribute to the circular flow of economic

activity?

a$.$ Individuals provide labor for factor markets and buy goods in product

markets

b$.$ The branch of economics that studies the choices of individual units$-$

including households, business firms, and government agencies

c$.$ The basic imputes of labor, capital, and natural resources used in

producing all goods and services

d$.$ None of the above

$4.$ How do individuals contribute to the circular flow of economic

activity?

a$.$ Factors of production

b$.$ Efficiency

c$.$ Sustitution effect

d$.$Demand

$5.$ The limited nature of society's resources

a$.$ Scarcity

b$.$Supply

c$.$Demad

d$.$Price

$6.$What would be the BEST label name for C$?$

$*$Hint: Pay careful attention to the location of the firms, households,

product market, and resource market.

a$.$ Goods and services

b$.$ Elasticity

c$.$ Surplus

d$.$ Price

$7.$ Which of the following is an example of a free good?

a$.$Sea water

b$.$Fire

c$.$Rock

d$.$ All of the above

$8.$ Any situation where people buy and sell goods

a$.$ Market

b$.$ market demand schedule

c$.$ Consumer surplus

d$.$ Elasticity of Demand

$9.$ Are determined by what gets produced

A Prices

b$.$Market Price

c$.$Substitution Effect

d Demand

$10.$ The desire to have a good or service and the ability to pay for it

a$.$ Demand

b$,$ Law of Demand

c$,$ Income Effect

d$.$ None of the above

$11.$ The work time and work effort that people devote to producing goods

and services is $\_\_\_\_\_\_\_\_\_\_\_\_\_.$

a$.$ Labor

b$.$ Capital

c$.$ Entrepreneurship

d$.$ Land

$12.$ The tools, instruments, machines, buildings, and other

constructions that businesses use to produce goods and services are

$\_\_\_\_\_\_\_\_\_\_\_.$

a$.$ Labor

b$.$ Capital

c$.$ Entrepreneurship

d$.$ Land

$13.$ The human resource that organizes land, labour, and capital is

$\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_.$

a$.$ Labor

b$.$ Capital

c$.$ Entrepreneurship

d$.$ Land

$14.$ The $$gifts of nature$$ that we use to produce goods and services

are $\_\_\_\_\_\_\_\_\_\_\_\_\_.$

a$.$ Labor

b$.$ Capital

c$.$ Entrepreneurship

d$.$ Land

$15.$ Which is not a key ideas define the economic way of thinking:

a$.$ Abundance mentality can be a choice.

b$.$ A choice is a tradeoff.

c$.$ People make rational choices by comparing benefits and costs.

d$.$ Benefit is what you gain from something.

$16.$ A $\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_$ can be tested by checking it against facts.

a$.$ Normative statement

b$.$ Positive statement

c$.$ Negative statement

d$.$ Public Statement

$17.$ A $\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_$ an opinion and cannot be tested.

a$.$ Normative statement

b$.$ Positive statement

c$.$ Negative statement

d$.$ Public Statement

$18.$ Earnings of economics majors vary a lot depending on the job and

the $\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_.$

a$.$ Economic factors

b$.$ Opportunity costs to be considered.

c$.$ Connection on government

d$.$ Level of qualifications.

$19.$ This is the skill or the ability to clarify and solve problems using

logic.

a$.$ Critical$-$thinking

b$.$ Analytical skills

c$.$ Math skills

d$.$ Oral communication skills

$20.$ The ability to use economic tools to examine data, see patterns,

and reach logical conclusions.

a$.$ Critical$-$thinking

b$.$ Analytical skills

c$.$ Math skills

d$.$ Oral communication skills