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¡½Test > Microeconomics II
There are 10 questions in this quiz![ PRINT ]

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Q. 1 May intends to give Eric a birthday present and asks him to choose from the following three options
A
Computer; watch
B
Watch; computer
C
Mobile phone; computer
D
Cannot be determined.


Q. 2 Recently, oil price has fallen sharply. Which of the following must NOT be the reason?
A
Asian financial crisis leads to depression.
B
Members of the Organization of Petroleum Exporting Countries break the agreement and increase the production of oil.
C
The technology of nuclear power has a significant breakthrough.
D
All of the above are correct.


Q. 3 Suppose the government is going to impose one of the following policies.
Policy 1¡G Imposing perunit sales tax on product X ($T per unit)
Policy 2¡G Providing free of charge, transferable import quota to the producers of product X.

The above diagram shows the results of the two policies. Which of the following is correct?
A
The government is indifferent to Policy 1 and 2.
B
The producer is indifferent to Policy 1 and 2.
C
No other government intervention will have the same effect (P1,Q1) as both policies.
D
The maximum perunit price of quota is equal to the
perunit sales tax.


Q. 4 Suppose the government gives a per-unit subsidy to the producers of product X.
A
The demand elasticity will not affect the total income of the producers.
B
If the demand elasticity is greater than the supply elasticity, the consumers' share of subsidy will be larger.
C
If the demand is unitarily inelastic, producers will enjoy all share of subsidy.
D
The higher the elasticity of demand, the more the producers' total income will be.


Q. 5 Which of the following are tertiary producers?
(1) A school teacher
(2) A civil servant
(3) A student
A
(1) and (2) only
B
(1) and (3) only
C
(2) and (3) only
D
(1), (2) and (3)


Q. 6 Which of the following are capital?
(1) Television sets at restaurants
(2) A television set at home
(3) A tree in the forest
(4) Timber for carpentry
A
(1) and (3) only
B
(2) and (4) only
C
(1) and (4) only
D
(2) and (3) only


Q. 7
According to the above table, the law of diminishing returns is observed when the __________ unit of variable factors is added into the production.
A
first
B
second
C
third
D
fourth


Q. 8 Mr Chan solely operates a restaurant. Recently, an accountant joins and becomes a new shareholder. It is a partnership business now. Which of the following is NOT the difference between the old company and the new one?
A
The efficiency of decision-making in the new company can be higher.
B
One of the shareholders in the new company can enjoy limited liability.
C
The division of labour in the new company can be more complex.
D
The debts of the new company can be shared by two shareholders.


Q. 9 The major difference between perfect competition and monopolistic competition is
A
number of producers.
B
number of consumers.
C
nature of the products.
D
the level of difficulty to enter the market.


Q. 10 Which of the following involves the question of ¡¥what to produce¡¦?
A
Mr Chan opens a toy shop branch in Singapore.
B
Mr Chan plans to sell stationery in his toy shop.
C
Mr Chan bought a video game to his son.
D
Mr Chan plans to cut his labour.


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