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WORK Sheet

Work sheet

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ambachew tilahun
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13 views5 pages

WORK Sheet

Work sheet

Uploaded by

ambachew tilahun
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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WORK SHEET

1. Microeconomics is the study of the decision making behavior of


a) The society as a whole c) An individual economic entity
b) A large group of individuals d) none of the above
2. Any point outside the PPC represents
a) a least cost combination of resources
b) an unattainable combination of resources
c) a state of full employment of resources
d) a situation involving under-utilized resources
e) none
3. The proportion of labor and capital used to produce a commodity and the question of choice
of technology refers to the problem of :
a) What to produce and in what quantity b) for whom to produce
4. As price of commodity Y increases, demand curve for commodity X shifts to the left,
then X and Y are
a) substitute goods
b) unrelated goods
c) complementary goods
d) either substitute or complementary goods
e) neither complementary nor substitute goods
i.
5. The elasticity of demand for a good is 0.8 with respect to price. Therefore, one expects
that a 1% increase in price would _________
a) increase quantity demanded by 0.8%
b) increase quantity demanded by 0.16%
c) decrease quantity demanded by 0.8%
d) decrease quantity demanded by 0.16%
6. The market equilibrium for a commodity is determined by _________________.
a) the market demand for the commodity
b) the market supply of the commodity
c) the interaction between demand for and supply of a commodity
d) all of the above
e) none of the above
7. A scarce resource ________________.
a. can be traded
a. its supply is affected by the price system
b. supply and demand are equal at zero price level
c. A and B
d. all of the above

8. We study Economics because:-


a. Human being need to share the resource of the nation
b. We have to wisely use the existing resources as efficiently as possible
c. The nation's resource must be redistributed so as to meet the unlimited need of the human
being.
d. B and C
e. All of the above

9.Households
a. Have utility maximization top in their agenda
b. Are the major consumers of final goods and services
c. Own and supply resources to Business firm
d. Can be involved in international trade
e. All of the above

10.Which of the following is not a basic Economic problem


a. What and how much to produce
b. Where and when to produce
c. How to produce
d. For whom to produce
e. None of the above
11. When price increases, other things being constant
a) Quantity demanded will increase
b) Demand will decrease
c) The supply curve will shift
d) Quantity supplied will decrease
e) None of the above

12. Market is
a) A place where goods and services are exchanged for money
b) A system through which transaction is activated
c) A place where you can see the curves of demand and supply
d) A and C
e) C and B

13 The development of Internet


a) Will shift the supply curve outward
b) Will shift the demand curve inward
c) Will shift the supply curve inward
d) Will shift the demand curve outward
e) None of the above

14. Elasticity
a) Quantities the relationship between a dependent and an independent variables
b) Show the type relationship between a dependent and an independent variables
c) Equates the dependent variable to the independent variables
d) A and B
e) None of the above

15. Which of the following events will increase the demand for 'Kitfo' other things kept constant.
a) The price of meat has increased
b) Improved technology of production of 'Kitfo' has implemented
c) The average income of the consumer of 'kitfo' has increased
d) Eating 'Doro Wette' become more popular
e) None of the above
16.Which of the following is wrong about scarce resources
a) All scarce resources are nature given
b) All scarce resources are human made
c) Labor is a homogenous scarce resource
d) Labor is not a scarce resource in developing countries
e) All of the above
17.If the average income of consumers of commodity X, mentioned in question no.24
above, has increased by one percent, what is the most likely change in demand for the
commodity?
a) Demand for commodity X will increase by 1.25 percent
b) Demand for commodity X will decrease by 1.25 percent
c) Demand for commodity X will not changed
d) All of the above
e) None of the above
18.Substitute goods in consumption
a) Which fulfill the same or similar human needs
b) Which compete for the same consumer
c) Whose cross – price elasticity of demand is negative
d) All of the above
e) None of the above
19.Which of the following is not a function of good government in an economy?
a) Protection of property right, enforcement of law and contracts
b) Production of Public and Merit goods and services
c) Maintaining stable monetary system
d) Redistribution of wealth so as to achieve a more equitable distribution of wealth
e) None of the above
20.The Production Possibility Frontiers (PPF /PPC) is a curve which
a) Connects all combinations of outputs that can be produced by using a fixed total amount
of resources and technology
b) Connects all combinations of inputs that are sufficient to produce a given amount of
output at a fixed level of technology
c) Shows the maximum production capacity of an economy at a given level of resource
supply and technology
d) All except B
Work out
1.The market demand and supply equations for a product are
QD = 25 - 3P
QS = 10 + 2P
 Where Q is quantity and P is price.
a. What are the equilibrium price and
b.quantity for this product?
2.Suppose the demand and supply functions for Coca are given by
Qd = 200 - 30p and
Qs = 20p, respectively.
a. Find the equilibrium quantity of coca demanded?
b. Find equilibrium price of Coca

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