Eco OnTheGo
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Tutorial 1 - ECO120

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Tutorial 1 - ECO120

Tutorial 1 - ECO120

Question 1 of 10

1

Opportunity cost is

Select one of the following:

  • the cost that we forgo or give when we make a choice or decision.

  • a cost that cannot be avoided regardless of what is done in the future.

  • the additional cost of producing one additional unit of output.

  • the additional cost of buying one additional unit of output.

Explanation

Question 2 of 10

1

2. The basic economic problem of “For whom to produce?” is concerned with

Select one of the following:

  • the determination of resources and technique or production to be used.

  • the distribution of good and services produced.

  • the alternatives of collection of goods and services to be produced.

  • the quantities of the goods and services shall be produced.

Explanation

Question 3 of 10

1

Technological advancement normal results in

Select one of the following:

  • a larger quantity being offered for sale than before at each price

  • an increase in supply

  • a rightward shift of the supply curve

  • all the above

Explanation

Question 4 of 10

1

4. Economists make a distinction between change in quantity supplied and change in supply:

Select one of the following:

  • because the demand curve shifts whenever there is a change in supply.

  • because the supply shifts whenever there is a change in quantity supplied

  • to distinguish a movement along a supply curve from a shift in supply.

  • to distinguish a shift in demand from a shift in supply.

Explanation

Question 5 of 10

1

A maximum price result in

Select one of the following:

  • a shortage

  • a surplus

  • equilibrium

  • none of the above

Explanation

Question 6 of 10

1

A simultaneous shift in demand and supply to the right will lead to

Select one of the following:

  • a lower equilibrium quantity

  • a higher equilibrium quantity

  • a similar equilibrium quantity

  • a moderate equilibrium quantity

Explanation

Question 7 of 10

1

In order to protect producer’s income, government should set a price floor

Select one of the following:

  • above the equilibrium price

  • below the equilibrium price

  • equal to the equilibrium price

  • none of the above

Explanation

Question 8 of 10

1

The greater the price elasticity of demand the

Select one of the following:

  • more likely the product is necessity

  • smaller the responsiveness of quantity demanded to price

  • greater the percentage change in price over the percentage change in quantity demanded

  • greater responsiveness of quantity demanded to price

Explanation

Question 9 of 10

1

The price elasticity of demand of a horizontal demand curve is

Select one of the following:

  • perfectly elastic

  • perfectly inelastic

  • unitary elastic

  • inelastic

Explanation

Question 10 of 10

1

If your income increases, but your consumption of sardine decreases, then sardine is

Select one of the following:

  • a normal goods

  • a luxury goods

  • an inferior goods

  • a substitute

Explanation

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