Introduction to economics

is this a micro-economic or a macro-economic Problem?

Inflation and/or deficit

• Micro-economic

• Macro-economic

One of the following is not a type of economy

• centrally planned

• Mixed economy

• Market economy

• Basic economy

is this a micro-economic or a macro-economic Problem?

Shortage in national steel production

• Micro-economic

• Macro-economic

The addition to cost associated with additional unit of output is

• Marginal cost

• Average cost

• Total cost

• Variable cost

Rational decision means: consumers buy the type of goods that the average person buys

• True

• False

You and all of your friends walk into a room, there are only 2 chairs and there are 6 of you. There are unlimited wants (all of you) but limited resources (only 2 chairs) 

Select one:

• Scarcity

• Trade-off

• Opportunity cost

• factors of production

In a centrally planned market economy, the economic problem of what goods should be produced and how it is distributed is usually solved by 

• Government

• Supplier

• Customer

• Market

Factors of production includes:

• Food

• Land

• Capital

• Labour

Cost that do not vary with the amount of output produced

• Semi-variable

• Stepped cost

• Fixed cost

• Variable cost

In a pure market economy, Prices are determined by

Select one:

• Government

• demand and supply

• Factors of production

• Government and market interaction