Opportunity cost is
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.
2. The basic economic problem of “For whom to produce?” is concerned with
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.
Technological advancement normal results in
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
4. Economists make a distinction between change in quantity supplied and change in supply:
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.
A maximum price result in
none of the above
A simultaneous shift in demand and supply to the right will lead to
a lower equilibrium quantity
a higher equilibrium quantity
a similar equilibrium quantity
a moderate equilibrium quantity
In order to protect producer’s income, government should set a price floor
above the equilibrium price
below the equilibrium price
equal to the equilibrium price
The greater the price elasticity of demand the
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
The price elasticity of demand of a horizontal demand curve is
If your income increases, but your consumption of sardine decreases, then sardine is
a normal goods
a luxury goods
an inferior goods