Part II :Choose the best answer from the alternatives given and write the letterthe bears it in the provided. (One point each)11.Which part of economics is concerned with defining an ideal economy?A. Positive economicsC. Deductive reasoningB. Normative economicsD. Inductive reasoning12.Subjective units used to measure utility are calledA. ordinalB. cardinalC. utils D. Marginal Utility (MU)13. Which one is NOT property of indifference curves?A. they are convex to the originB. they cannot intersect each otherC. they slope downwards from left to rightD. they are concave to the origin14.Demand constitutes two basic elements. What are they?A. interest and skill to buyC. knowledge and psychologyB. willingness and ability to buyD. None of the above15. Which of the following factors is a determinant of price elasticity of demandfor a commodity?C. The time periodA. The availability of substitutesB. The number of uses of the commodityD. All of the above16.At which stage of production do total, average and marginal productsincrease with an increasing use of a variable input?A. Stage IB. Stage IIC. Stage IIID. All are possible answers17.Suppose the AR and MR of a firm at a given level of output was 20 and 15respectively. What is the elasticity of demand for its product?А. 5В. 4С. ОD. 118.Which two short run cost curves have the same shape?A. ATC and AFCC. MC and ATCB. AVC and AFCD. MC and AFC19. Suppose the elasticity of demand equals 2. What is the MRof the firm giventhe AR is 200?А. 150В. 10С. 100D. 2020.The process of exchange of goods or services from sellers to buyers isreferred to as:A. supplyB. marketC. demandD. production

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11.Which part of economics is concerned with defining an ideal economy? A. Positive economics C. Deductive reasoning B. Normative economics D. Inductive reasoning

Principles of Microeconomics

7th Edition

ISBN:9781305156050

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter21: The Theory Of Consumer Choice

Section: Chapter Questions

Problem 11PA

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