Assalamualaikum.
Week Six already?
Sir Amir asked on this week we need to update about preparation for exam. So, we will provide you with the question. Try to answer the question below. Try to not look for the notes, if you still refer to the notes then you are not ready for the examination. Good Luck!
Section A: Multiple-choice Questions
- A mixed economy is an economy that ___________.
A) Changes from a pure free to a pure planned economy
B) Has elements of dictatorship
C) Is a mix of pure free and pure planned economies
D) Has minimum government interventions
2. The following are characteristic of a pure planned economy, except _________.
A) achieves an equal income distribution
B) public ownership of resources
C) price mechanism of lesser importance
D) stimulates innovation
3. The problem of scarcity arises due to __________.
A) human being greed
B) limited available resources
C) government restrictions to the productionof too many goods and services
D) ineffecient production methods to expand the production of goods and services
4. "The government should implement non-smoking zones in public places to reduce the incidence of cancer " This statement is a __________.
A) normative statement
B) positive statement
C)both a normative and positive statement
D) None of the above
5. A movement along the PPC implies
A) labour force has increased
B) productivity has increased
C) society has chosen a different set of output
D) improvement in technological
6. _________ is studying how Ahmad allocates his time between work and leisure
A) Microeconomics
B) Macroeconomics
7. Given the decreasing opportunity cost, the PPC is _________.
A) convex
B) concave
C) linear
D) a vertical line
8. The study of international trade and national income is part of __________.
A) global economics
B) elected representative of people
C) price mechanism
D) action of producers
9. __________ goods are goods where the demand is negatively related to income.
A) Complement
B) Normal
C) Substitute
D) Inferior
10. An economist would estimate the ______ to determine the relationship between two goods
A) income elasticity of demand
B) cross elasticity of demand
C) price elasticity of demand
D) price elasticity of supply
11. Which of the following pairs is a substitute?
A) Mobile phone and charge
B) Wool and cotton
C) Salt and pepper
D) Tea and sugar
12. Seller would offer ____ for sale as price decreases and thus the supply curve is _____ sloping
A) less; upwards
B) more; upwards
C) less; downwards
D) more; downwards
13. Which of the following is the non-price determinant of supply of wheat
A) A decrease in the price of corn
B) A decrease in the price of wheat
C) Improvements in the techniques of growing wheat
D) A decrease in the price of wheat farming machinery and equipment
14. As the price of eggs increases, Sophie's production of cakes _________.
A) increases the supply of cakes
B) decreases the supply of cakes
C) increases the quantity supplied of cakes
D) decreases the quantity supplied of cakes
15. Ahmad runs a catering business. He received a wedding food order for 1000 people and needs
a worker to help him with the order. The demand for a worker is considered ___________.
A) joint supply
B) joint demand
C) derived demand
D) competitive demand
16. All of the following are held to be a constant when thw supply curve of a product is drawn,
except for the __________.
A) state of technology
B) price of the product
C) number of producers
D) price of production inputs used
17. Based on a survey, the income elasticity of demand for Sony MP3 players is 0.85. This shows that Sony MP3 players __________.
A) are luxury goods
B) are normal goods
C) have price elasticity of 0.85
D) None of the above
18. A shift to either the left or right of a supply curve is called a change in _______.
A) quantity demanded
B) quantity supplied
C) demand
D) supply
19. When a consumer has the ability and wilingness to pay for a good, this is called _________.
A) want
B) law of demand
C) demand
D) desire
20. Movement along the demand curve for high rise apartments will be caused by a change in ___.
A) Consumer's income
B) Consumer's taste and preferences
C) The price of the high rise apartments
D) The price of single-storey link houses
21. Subsidies given to vegetables farmers will result in ___________ for vegetables.
A) a shift in the supply curve
B) a shift in the demand curve
C) a movement along the supply curve
D) a movement along the demand curve
22. If there is a surplus of product X, we can predict that _________.
A) the price of X will rise
B) the price of X will decline
C) fewer resources will be allocated to the production of X
D) the SS curve will shift to the left and DD curve to the right, there by eliminating shortage
23. Which of the following statements is true about the equilibrium price?
A) There are forces that will increase the price
B) There are forces that will decrease the price
C) There is no pressure on price to either increase or decrease
D) Quantity supplied may exceed wuantity demanded, and vice versa
24. If the government fixes the price below the equilibrium price, we might expect ___________.
A) an excess of supply in the market
B) quantity supplied to exceed quantity demanded
C) quantity demanded to be equal to quantity supplied
D) the emergence of black markets as individuals try to take advantage of unexploited opportunities
25. The following are the characteristics of a market in equilibrium, except
A) there is no excess
B) there is no surplus
C) there is a tendency for price to change
D) quantity demanded is equal to quantity supplied
