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Quiz on Tutorial 2 - ECO120, created by Eco OnTheGo on 08/09/2014.

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Tutorial 2 - ECO120

Question 1 of 11

1

Which of the following would be studied in microeconomics?

Select one of the following:

  • The total number of workers employed in a country

  • The general level of prices in the Malaysian economy

  • The output and price of lamb in Malaysia

  • The production of the entire economy

Explanation

Question 2 of 11

1

Which of the following would be studied in microeconomics?

Select one of the following:

  • The total number of workers employed in a country

  • The general level of prices in the Malaysian economy

  • The output and price of lamb in Malaysia

  • The production of the entire economy

Explanation

Question 3 of 11

1

Which of the following does not illustrate opportunity cost?

Select one of the following:

  • If spent more on shoes, I must spend less on food

  • If I study today for the test tomorrow, I must give up watching my favorite movie

  • If I buy the PSP, I must do without a 35” television

  • An increment in consumer spending now means more spending in the future

Explanation

Question 4 of 11

1

Which of the following is not a characteristic of an inelastic demand?

Select one of the following:

  • There is a large number of substitution goods for customers

  • The period of time for which demand is given is very short

  • The buyer spends a small percentage of his income on a product

  • The product is regarded by consumers as a necessity

Explanation

Question 5 of 11

1

An increase in demand means that

Select one of the following:

  • the demand curve has shifted to the left

  • price has declined and therefore consumers want to purchase more of the product

  • the demand curve has shifted to the right

  • given supply, the price of the product can be expected to decline

Explanation

Question 6 of 11

1

Ceteris paribus, the supply of flour is positively sloped because

Select one of the following:

  • the price will increase when farmers get higher profits

  • an increase in the price of flour will cause the quantity supplied to increase at the same rate

  • an increase in the demand for flour will cause an increase in the demand of flour

  • the high price will motivate farmers to increase flour production

Explanation

Question 7 of 11

1

The price of goods tend to stabilize if quantity

Select one of the following:

  • demanded exceeds quantity supplied

  • supplied is stabilize

  • demanded equals to quantity supplied

  • supplied exceeds quantity demanded

Explanation

Question 8 of 11

1

Which of the following is a short run adjustment?

Select one of the following:

  • A local bakery hires two additional workers

  • The number of plantations in Malaysia declines by 5%

  • Eight new firms enter the electronic industry

  • Proton constructs a new assembly plant in Malacca

Explanation

Question 9 of 11

1

The law of diminishing marginal return describes the

Select one of the following:

  • Relationship between inputs and outputs in the short run

  • Relationship between total costs and total revenues

  • Relationship between inputs and outputs in the long run

  • Profit maximizing position of a firm

Explanation

Question 10 of 11

1

A decrease in the price of product X causes an increase in the demand for product Y.
Product X and Y are mostly likely to be

Select one of the following:

  • Milo and Vico

  • Nasi lemak and Capati

  • Strawberries and Grape

  • Video recorders and video tapes

Explanation

Question 11 of 11

1

Assume the government has intervened in the market and imposed a floor price on good YY and a ceiling price on good ZZ.
What would be the effect on the market for good YY and good ZZ?

Select one of the following:

  • Shortage in both markets

  • Surplus in both markets

  • A surplus in the good YY market and an increase in the quantity of good ZZ

  • A surplus in the good YY market and a shortage in good ZZ market

Explanation

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