Introductory Microeconomics

Which of the following is/are features of resources in an economy?

• (a) Limited supply

• (b) Alternative uses

• Both (a) and (b)

• Neither (a) nor (b)

The most fundamental economic problem is related to

• (a) Scarcity of resources

• (b) Unlimited human wants

• Both (a) and (b)

• Neither (a) nor (b)

Microeconomics deals with which of the following?

• Total output of an economy

• Measurement of nations inflation rate

• How producers and consumers interact in individual market

• How tax policies influence economic growth

Which of the following is not a determinant of demand?

• Price of the commodity

• Income of the consumer

• Transportation cost

• Consumer's taste & preference

The slope of the demand curve is negative because of

• Income effect

• Substitution effect

• Diminishing marginal utility

• All of the above

Introduction of an improved technology of production may increase the supply of a commodity due to

• Fall in the cost of production

• Rise in cost of production

• Increase in demand

• Change in stock

Movement along the demand curve is due to

• Change in consumer's taste and preferences

• Change in consumer's income

• Change in the cost of production

• Change in price of the commodity

Other things remaining constant, increase in the price of raw materials will cause market supply to

• Increase

• Decrease

• Constant

• None of the above

Given the demand for a commodity, if supply of the commodity decreases, then

• Equilibrium price and quantity will increase

• Equilibrium price and quantity will decrease

• Equilibrium price will increase but quantity will decrease

• Equilibrium price and quantity will remain the same

External incentives does not include

• Reward

• Bonus

• Recognition

• Job satisfaction