ميحرلا نمحرلا مسب
Name : ———————————————— student No : ———————- Answer The Following Questions:
Q 1: Please define these sentences whether they are true (/) or false (X).
1.
( )
A mixed economy may involve both perfect and imperfect
competition.
2.
( )
An increase in demand means a movement to a higher quantity along
demand curve.
3.
( )
Marginal utility tends to increase as total utility increases.
4.
( )
Market system gives more goods to those with money votes.
5.
( )
Without government, for whom problem could not be solved.
6.
( )
The single word that best describes the fundamental problem of
economic is unemployment.
7.
( )
Total utility tends to rise as the level of consumption rises.
8.
( )
Good A is said to be complementary to good B, if more of B bought
when the price of A decrease.
9.
( )
Economics includes the study of how to improve society.
10.
( )
As businesses grow, their need for capital typically tends to decrease.
11.
( )
Waters tends to have a low marginal utility because its substitutes are
widely available.
12.
( )
The average product of labor increase when additional worker are
added.
13.
( )
Price increases cause a decrease in a household choice set.
14.
( )
The rate of return is a rate of return on capital that is just sufficient to
keep owners and investors satisfied.
15.
( )
The long run is a period of time for which there are no fixed factors
of production.
16.
( )
The optimal method of production is the method that minimizes cost.
17.
( )
The incomes available to the household determine quantity supplied .
18.
( )
Most economic activities would be described as perfect competition.
19.
( )
Oligopoly is a situation with only a few competing firms.
20.
( )
Upward-slopping supply curve are the result of increasing labor cost.
21.
( )
When demand does not respond at all to a change in price, demand is
perfectly elastic.
22.
( )
Homogeneous products are undifferentiated products; products that
are identical.
Q 2: Choose Best Answers:
Microeconomics
Date: 16/02/2009
Time: Two Hours
The Islamic University Faculty Of Commerce Dep of Economics and
Political Science
1) A price……. is a maximum price that sellers may charge for a good, usually
set by Government
a) rationing b) ceiling c) market d) system
2) The most common example of a price floor is the:
a) maximum salary b) minimum wage c) medicine price d) corn price
3) When quantity demanded drops to zero at the slightest increase in price,
Demand is then:
a) inelastic b) perfectly inelastic c) perfectly elastic d) elastic
4) When demand is inelastic, increase in price leads to ………… in revenues:
a) no change b) decrease c) increase d) it depends
5) It is one of the three basic decisions that should be taken by households in
output market:
a) how much to eat b) whether to work c) wage rate d) how much labor to
supply
6) The additional satisfaction gained by the consumption/use of one more unit of
something
a) utility b) reward c) happiness d) marginal utility
7) Total utility increases at………… rate, while marginal utility ………..:
a) decreasing, decreases b) increasing, increases c) decreasing, increases d)
increasing, decreases
8) ……… has the greatest value in use, and have little/no value in exchange
a) water b) diamond c) rare photos d) gold
