OR OM P) 1 Ry) Reco PART |: MULTIPLE CHOICE ITEMS 1, ------------ is a production unit that uses economic resources to produce goods and services. a) Firm b) household c) government d) net export 2. If two goods are , then price of one and the demand for the other are directly related. a) Complements b) normal goods c) substitute d) inferior 3. is the amount available is less than the amount people wish to have at zero price. a) Scarce b) Shortage c) free resources d) short term problems 4. All determinates of demand are also called demand shifter except a) Price of the product c) Price of related goods b) Taste or preference of consumers d) Income of the consumers 5. The basic economics question is \"what to produce'? this is a) The problem of choice of technique b) The problem of distribution of national product c) The problem of allocation of resources d) How a material product is to be distributed among the members of a society 6. The main characteristics of free marketing economy system is a) Maximum social welfare b) Strong government role c) Equalities of income d) The right to private properties Tf. are goods whose demand decreases as income increase, while are those whose demand increases income increases. a) Normal goods, inferior goods c) Inferior goods, normal goods b) Normal goods, substitute goods d) Substitute and complement goods 8. If goods X and Y are substitutes, which of the following could be the value of cross price elasticity of demand? a)O b) 1 c)-1 d) all of the above 9. If Torsion shoes are inferior good, then which of the following could be the value of income elasticity of demand? A)0.8 b) 0.2 c) -1.2 d) all of the above