POP QUIZ PEC1154

Microeconomics is concerned with __________.

•  the entire economic system

• the specific unit of the economic system

• changes in the overall level of economic activities

• reducing the inflation rate and stimulating economic growth

Dharuriyyah and Kamaliyyah goods are respectively               _.

• necessity and luxury goods

• inferior and luxury goods

• comfort and luxury goods

• necessity and comfort goods

Below are the determinants of supply EXCEPT                               .

• taste and preferences

• price of raw material

• government taxes and subsidies

• number of sellers

The price elasticity of demand                    .

• a change in quantity demanded

• how far a demand curve shifts

• a change in price and quantity

• the responsiveness of quantity demanded to a change in price

A market is in equilibrium               .

• if there is a surplus of the product

• at all price above the transaction point between the supply and demand curve

• when the amount the producer want to sell is equal to the amount that consumer want to buy

• whenever the demand curve is downward sloping and the supply curve is up sloping

Production function shows the relationship between              ___.

• wages and profit

• input and output

• cost and output

• input and cost

In the short run, there are                              .

• both fixed and variable costs

• variable cost only

• fixed cost only

• None of the above.

Which of the following is a characteristic in a perfect competition firm?

• Price maker

• Barrier to entry

• Homogeneous product

• Mutual interdependent

A monopoly is the only seller of a good or service                     .

• with many substitutes

• without a close substitute

• with a perfectly inelastic demand

• without a well-defined demand curve

Monopolistic competition is characterized by                                .

• homogenous output throughout the industry

• a small number of sellers in the industry

• the ability of firms to influence the price of output

• high barriers to entry