microeconomics aic

The additional benefit I obtain teaching economics is RM100 and the additional cost I incur paying my maid to do the household chores because I am working is RM50. This is known as

• Efficiency

• Stability

• Marginalism

• Growth

2. What A in Basic Microeconomics states that Macro studies the totality or __________.

3. What word in BASIC MICROECONOMICS _________________ means that there are more demands than supply?

When the price of bread increases 10%, the demand curve of demand will...

• shift to the left side

• shift to the right side

• move up along the curve

• move down along the curve

The meeting of buyers (customers) and seller (suppliers). It could be through online, any brick and mortar establishment, or any forms where the 2 parties buy and sell.

• MARKET

• DEMAND

• CUSTOMER

• PRODUCT

To produce one good or service means forgoing the production of another. The concept of opportunity cost in economics suggests that the value of the activity forgone is the opportunity cost of the activity chosen; this cost should affect supply.

• Resource Prices

• Technology

• Prices of Other Goods

• Sellers' Expectations

• Taxes and Government Subsidies

Suppose that demand decreases AND supply decreases. What would you expect to occur in the market for the good?

• Both equilibrium price and equilibrium quantity would increase.

• Equilibrium price would decrease, but the impact on equilibrium quantity would be ambiguous.

• Equilibrium quantity would decrease, but the impact on equilibrium price would be ambiguous.

• Equilibrium price would increase, but the impact on equilibrium quantity would be ambiguous.

If there is an earthquake which destroyed the buildings and crops in a country, the Production Possibility Curve will shift

• To the left

• To the right

• Parallel to the right

• Parallel to the left

In this supply & demand schedule, what would happen if the price of the socks was set at $2.50 a pair?

• All socks would sell because it would be the equilibrium price.

• a shortage.

• a surplus.

• No socks would be produced because it would be the equilibrium price.

If the rise in price of Samsung laptops increases the demand for Asus notebooks, we could say that the two goods are......

• substitutes

• complements

• inferior goods

• normal goods