Economics Concepts & Practice Questions | Microeconomics | Trường Đại học Quốc tế, Đại học Quốc gia Thành phố Hồ Chí Minh

Question 1: Economics may best be defined as:
A: the interaction between macro and micro considerations.
B: the study of the behaviour of people and institutions in the production,
distribution, and consumption of scarce goods.
C: the empirical testing of value judgements through the use of induction and deduction.
D: the use of policy to refute facts and hypotheses.
Question 2: The study of economics is primarily concerned with:
A: keeping private businesses from losing money.
B: demonstrating that capitalistic economies are superior to socialistic economies.
C: choices that are made in seeking to use scarce resources efficiently.
D: determining the most equitable distribution of society's output.
Question 3: The term ‘ceteris paribus’ means: A: if event A precedes event B, A has caused B.
B: economics deals with facts, not values. C: other things being equal.
D: prosperity inevitably follows recession.
Question 4: The concept of economic efficiency is primarily concerned with:
A: the limited wants and unlimited resources dilemma.
B: considerations of equity in the distribution of wealth.
C: obtaining the maximum output from available resources.
D: the conservation of irreplaceable natural resources.
Question 5: The fundamental problem of economics is:
A: to establish an equitable system of personal and business taxation.
B: to establish a democratic political framework for the provision of social goods and services.
C: the establishment of prices that accurately reflect the relative scarcities of products and resources.
D: the scarcity of productive resources relative to material wants.
Question 6: The scarcity problem:
A: persists only because countries have failed to achieve continuous full employment.
B: persists because material wants exceed available productive resources.
C: has been solved in all industrialised nations.
D: has been eliminated in affluent societies such as Australia.
Question 7: The idea of ‘allocative efficiency’ refers to:
A: the use of the least-cost method of production.
B: the production of the product-mix most wanted by society.
C: the full employment of all available resources.
D: production, at some point, inside of the production possibilities curve.
Question 8: ‘Productive efficiency’ refers to:
A: the use of the least-cost method of production.
B: the production of the product-mix most wanted by society.
C: the full employment of all available resources.
D: production, at some point, inside of the production possibilities curve.
Question 9: Which of the following is not one of the three basic economics issues?
A: Which products should be in short supply and which in excess supply?
B: For whom should the total output be produced?
C: How should production be organised?
D: What goods and services should be produced? 1) A market:
A: reflects upsloping demand and downsloping supply curves.
B: entails the exchange of goods, but not services.
C: is an institution that brings together buyers and sellers.
D: always entails face-to-face contact between buyer and seller.
2) The law of demand states that:
A: price and quantity demanded are inversely related.
B: the larger the number of buyers in a market, the lower product price.
C: price and quantity demanded are directly related.
D: consumers will buy more of a given product at high prices than they will at low prices.
3) Represented graphically, the market demand curve is:
A: steeper than any individual demand curve that comprises it.
B: greater than the sum of the individual demand curves.
C: the horizontal sum of individual demand curves.
D: the vertical sum of individual demand curves.
4) Which of the following will not cause the demand for product K to change?
A: A change in the price of close-substitute product J.
B: An increase in consumer incomes.
C: A change in the price of K.
D: A change in consumer tastes.
5) If consumer incomes increase, the demand for product X:
A: will necessarily remain unchanged.
B: may shift either to the right or left.
C: will necessarily shift to the right.
D: will necessarily shift to the left.
6) The law of supply indicates that:
A: producers will offer more of a product at high prices than they will at low prices.
B: the product supply curve is downsloping.
C: consumers will purchase less of a good at high prices than they will at low prices.
D: producers will offer more of a product at low prices than they will at high prices
7) An improvement in production technology will:
A: tend to increase equilibrium price.
B: shift the supply curve to the left.
C: shift the supply curve to the right.
D: shift the demand curve to the left.
8) of the following statements is incorrect?
A: If demand increases and supply decreases, equilibrium price will rise.
B: If supply increases and demand decreases, equilibrium price will fall.
C: If demand decreases and supply increases, equilibrium price will rise.
D: If supply declines and demand remains constant, equilibrium price will rise.
9) If there is a shortage of product X, we can predict that:
A: fewer resources will be allocated to the production of this good.
B: the price of the product will rise.
C: the price of the product will decline.
D: the supply curve will shift to the left and the demand curve to the right, thereby eliminating the shortage.