.SECTIONA: MULTIPLECHOICE
10 MARKS
1. Microeconomics is concerned with:
a. The behavior of individual decision making units such as households and firms
b. The performance, structure, behavior, and decision-making of an economy as a
whole.
c. The economy as a whole, focusing on goals like growth in the standard of living,
unemployment, and inflation.
d. The study of microscopic organisms, such as bacteria, viruses, archaea, fungi and
protozoa.
2. Positive Economics is based on:
a. Statements that contain opinions and value judgement. i.e. "what ought to be" or
"what should be
b. based on factual statements and such statements contain no value judgement
c. Statements that cannot be settled by science or by an appeal to and such statement
d. All of the above
3. The term scarcity
a. Refers to a market economy in which the means of production belongs to the state
b. Refers to the decisions of what, how and when to produce and for whom to produce
c. Refers to the finite quantity of resources that are available to meet a society's
needs
d. Refers to the value of the next-best alternative when a decision is made
4. Specialization means
a. All of the below
b. The separation of tasks in an organization so that participants may specialize
c. Segmentation of tasks, with each person focusing on a specific part of the
production process
d. To focus resources on a specific task to have an increase in the production output
5. Resources
a. All of the below
b. Are also known as the factors of production, inputs or factors
c. Are productive items used to produce the goods and services that satisfy human
wants
d. Includes land, water supplies, mineral deposits and rich agricultural soils.
6. An Indifferent curve
a. indicates the combinations of any two goods or services that are attainable when
the community's resources are fully and efficiently employed
b. Is a graphed function that shows all combinations of two goods that provide exactly
the same degree of satisfaction to a consumer.
c. Indicates the maximum amount/quantities of outputs (goods/services) an economy
can achieve
d. None of the above
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