INSTRU TION:Read the following question carefully and write "TRUE state ment is correct or up ALSE":I live statement is incorre I (1 point each). 1. Indifference curv e only tells about consumer preferences for any run goods. 2. Microccono mics central problem s clean rmination of leve of incom and employment 3. A change in price can cause a shift of a demand 4. Total utili in price can cause a as marginal utilit is negative. 5. A resour ce is scar eif sunnls exceed dcm and at zero prices. 6. Car dinal utilin soach is explai ned with the help of indifference curve. 7. The demand curv c for a firm under perfect competition is downwa ed sloping. 8. The main goal of con sumer is profi t max imization. 9.During inflatior the prices of all goods an d ser vices r ise together. 10 where TP increases at an increasing rate. MP increases. PART II:M JLTIPL E CHOICE ITEMS INSTR UC TION : Choos the best answe r among the given alternatives provi each questions and write the letter of your choice on the space orovided (1.5 poin 1. What is the univers l cconom ic problem faced by any society? A.limited resources and ur llimite I wants C. limited resources and limite 3. unlimited resources and limited wants D . unlimited resources and un . When change in the price of goods-X affects the demand of goods-Y . this elastic called . Price elasticity de mand C. Cross elasticity demand Income elasticity demand D . Cross elasticity supply The three basic ec onomic questions everyone must answer are . When to produ ce, What to produce,Where to produce How much money to mak e.Hov v to pr oduce.Where to sell What to produce How to produce,fo whom to produce low to produce,How much to produce,Where to sell emand for one item goes down when the price of another item goes up.T ompleme nts. B.Normal goods. C Substitutes. D consum er has 200 to spend on two goods X and Y with prices 10 quation of the budget line is __ Y=10-0.5x C. Y=20-0.5x =30-0.5x Apple manufacturer pays the same amount to produce each iPhone es in total.Which tern describes the type of cost for producing iPh B . variable cost C fixed cost D . marginal cost I cost ease in input price and advancemen t of technology: the dema L'O the damand curve in ward C. Will shift the supply

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INSTRU TION:Read the following question carefully and write "TRUE state ment is correct or up ALSE":I live statement is incorre I (1 point each). 1. Indifference curv e only tells about consumer preferences for any run goods. 2. Microccono mics central problem s clean rmination of leve of incom and employment 3. A change in price can cause a shift of a demand 4. Total utili in price can cause a as marginal utilit is negative. 5. A resour ce is scar eif sunnls exceed dcm and at zero prices. 6. Car dinal utilin soach is explai ned with the help of indifference curve. 7. The demand curv c for a firm under perfect competition is downwa ed sloping. 8. The main goal of con sumer is profi t max imization. 9.During inflatior the prices of all goods an d ser vices r ise together. 10 where TP increases at an increasing rate. MP increases. PART II:M JLTIPL E CHOICE ITEMS INSTR UC TION : Choos the best answe r among the given alternatives provi each questions and write the letter of your choice on the space orovided (1.5 poin 1. What is the univers l cconom ic problem faced by any society? A.limited resources and ur llimite I wants C. limited resources and limite 3. unlimited resources and limited wants D . unlimited resources and un . When change in the price of goods-X affects the demand of goods-Y . this elastic called . Price elasticity de mand C. Cross elasticity demand Income elasticity demand D . Cross elasticity supply The three basic ec onomic questions everyone must answer are . When to produ ce, What to produce,Where to produce How much money to mak e.Hov v to pr oduce.Where to sell What to produce How to produce,fo whom to produce low to produce,How much to produce,Where to sell emand for one item goes down when the price of another item goes up.T ompleme nts. B.Normal goods. C Substitutes. D consum er has 200 to spend on two goods X and Y with prices 10 quation of the budget line is __ Y=10-0.5x C. Y=20-0.5x =30-0.5x Apple manufacturer pays the same amount to produce each iPhone es in total.Which tern describes the type of cost for producing iPh B . variable cost C fixed cost D . marginal cost I cost ease in input price and advancemen t of technology: the dema L'O the damand curve in ward C. Will shift the supply

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### PART I: TRUE OR FALSE 1. **TRUE** - Indifference curves represent a consumer's preferences for combinations of goods. 2. **FALSE** - Microeconomics focuses on individual markets, not the determination of income and employment (which is a macroeconomic issue). 3. **FALSE** - A change in price causes movement along the demand curve, not a shift. 4. **FALSE** - Total utility increases as long as marginal utility is positive, not negative. 5. **TRUE** - A resource is scarce when it is limited and has value even at zero prices. 6. **FALSE** - The cardinal utility approach does not use indifference curves; it uses numerical values to measure satisfaction. 7. **FALSE** - Under perfect competition, the demand curve for a firm is horizontal (perfectly elastic), not downward sloping. 8. **FALSE** - The main goal of a consumer is utility maximization, not profit maximization. 9. **FALSE** - During inflation, not all prices rise together; some may rise faster than others. 10. **TRUE** - When total product (TP) increases at an increasing rate, marginal product (MP) also increases. --- ### PART II: MULTIPLE CHOICE 1. **What is the universal economic problem faced by any society?** **A. Limited resources and unlimited wants** Explanation: Scarcity arises because resources are limited while human wants are unlimited. 2. **When a change in the price of good X affects the demand for good Y, this elasticity is called:** **C. Cross elasticity of demand** Explanation: Cross elasticity measures how the quantity demanded of one good changes in response to a price change in another good. 3. **The three basic economic questions everyone must answer are:** **C. What to produce, how to produce, for whom to produce** Explanation: These are the fundamental questions every economy must address due to scarcity. 4. **Demand for one item goes down when the price of another item goes up. These goods are:** **A. Complements** Explanation: Complementary goods are consumed together, so a price increase in one reduces demand for the other. 5. **A consumer has $200 to spend on two goods X and Y with prices $10 and $20 respectively. The equation of the budget line is:** **C. Y = 10 - 0.5X** Explanation: The budget line equation is derived from the formula $ P_X \cdot X + P_Y \cdot Y = Income $. 6. **Apple manufacturer pays the same amount to produce each iPhone regardless of the number produced. This cost is:** **C. Fixed cost** Explanation: Fixed costs remain constant regardless of the level of production. 7. **An increase in input price and advancement of technology:** **C. Will shift the supply curve inward** Explanation: Higher input prices reduce supply, shifting the supply curve inward.

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