Given the scarcity, what are the three basic questions that every economy must answer?

What to produce, how and for whom to produce

If butter and margarine are substitute goods, and the price of butter falls, then.....

The demand curve for margarine will shift to the left

What two conditions must be met in order for the economy to produce maximum possible output?

All resources fully employed and productive efficiency

The law of demand states that:

the lower the price, the higher demand for the good/service

In short, what is SCARCITY?

Resources are finite, human needs and wants are infinite

What happens when the price of a good changes, ceteris paribus?

A movement along the demand curve

If a cost of producing gudetama toys increases, it means:

A higher market price, and a smaller quantity demanded

If demand for Herald Sun is up 10% as a result of the price of The Age increase by 15%..

Cross-price elasticity of demand is high

On the production frontier curve in the graph, what would the output be at point C?

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Economics-Microeconomics basics Quiz

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Questions 18

Answers

1
Given the scarcity, what are the three basic questions that every economy must answer?
What is the population of a country, how and when to produce
What to produce, how and for whom to produce
What not to produce, where and when to produce
What to produce, where to produce and how much to produce
2
If butter and margarine are substitute goods, and the price of butter falls, then.....
The demand curve for margarine will shift to the left
The demand curve for butter will shift to the left
The demand curve for margarine will shift to the right
There wil be no change in the demand for margarine
3
'A positive causal relationship between the quantity of a good supplied and its price.'
The law of supply
The law of demand
None of the above
Price elasticity of suppy
4
What is the reason for the demand curve being downward sloping?
Increasing marginal benefits
A lack of demand and supply for the good/service
Willingness to buy goods/services
Decreasing marginal benefits
5
What two conditions must be met in order for the economy to produce maximum possible output?
None of the above
All resources fully employed and productive efficiency
Some key resources employed and productive efficiency
Achieving actual output of an economy
6
The law of demand states that:
All of the above
the higher the price, the higher demand for the good/service
the lower the price, the lower demand of the good/service
the lower the price, the higher demand for the good/service
7
In short, what is SCARCITY?
Underallocation of resources
Resources are finite, human needs and wants are infinite
Overallocation of resources
Human needs and wants are finite, resources are infinite
8
'Ceteris paribus' is a Latin expression which means:
Equal distribution of resources
All else being equal
Unequal distribution of income
All else being unequal
9
What happens when the price of a good changes, ceteris paribus?
A reduction in demand of the good
A shift in the demand curve
None of the above
A movement along the demand curve
10
A measure of the responsiveness of the quantity of a good demanded to changes in its price' is:
Price elasticity of demand
Price elasticity of supply
Cross-price elasticity of demand
Cross-price elasticity of supply
11
What is the most likely cause of the leftward shift in the demand curve, ceteris paribus?
All of the above
A change in tastes against the product
A decrease in the number of buyers
A decrease in consumer income
12
'The value of the next best alternative forgone to obtain something else', is...
Scarcity
Sustainability
Opportunity cost
Productive efficiency
13
If a cost of producing gudetama toys increases, it means:
A lower market price and a higher quantity supplied
A higher market price, and a smaller quantity demanded
A higher market price and a higher quantity demanded
A lower market price and a smaller quantity supplied
14
'The study concerned with the best possible use of scarce resources and unlimited wants'..is...
Scarcity
The factors of production
Economics
Opportunity cost
15
Which of the following would be most likely to cause the supply curve to shift to the left?
An obsolete (primitive) technology
All of the above
An increase in staff wages
An increase in tax
16
Which of the following is NOT the non-price determinant of market demand?
Preferences and tastes
Prices of substitute goods
Prices of complimentary goods
Producer (firm) expectations
17
If demand for Herald Sun is up 10% as a result of the price of The Age increase by 15%..
Cross-price elasticity of demand is low
Income elasticity of demand is high
Cross-price elasticity of demand is high
Price elasticity of supply is high
18
On the production frontier curve in the graph, what would the output be at point C?
About 34 whiteboards and 39 computers
51 computers and 3 whiteboard
34 computers and 39 whiteboards
49 whiteboards and 1 computer

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