MIP2602 Assignment 1 Quiz (Questions and Answers)
2023 || Verified Microeconomics Assessment Solutions
Description: MIP2602 Assignment 1 Quiz (2023) with complete verified questions
and answers. Covers key principles of microeconomics, including market
equilibrium, elasticity, and consumer behavior. Ideal for UNISA students preparing
for semester assessments.
Keywords: MIP2602 assignment 1 2023 microeconomics quiz answers unisa
economics assignment market equilibrium questions verified unisa solutions
Section 1: Introduction to Microeconomics and Basic Concepts
1. What is the primary focus of microeconomics?
A) The behavior of the entire economy
B) The overall price level and inflation
C) The decision-making of individual households and firms
D) National income and output
2. The concept of scarcity in economics refers to:
A) A shortage of a particular good
B) The fact that human wants exceed the resources available to satisfy them
C) Poverty in developing countries
D) An unlimited supply of resources
3. The opportunity cost of a decision is:
A) The financial cost of that decision
B) The value of the next best alternative that is forgone
C) The total cost of production
D) The cost of the chosen alternative
,4. When a production possibilities frontier (PPF) is bowed outward, it
illustrates:
A) Constant opportunity costs
B) Decreasing opportunity costs
C) Increasing opportunity costs
D) Zero opportunity costs
5. An economy is operating efficiently when it:
A) Produces a equal amount of all goods
B) Uses all its resources and is producing on its PPF
C) Has a high level of unemployment
D) Produces inside its PPF
6. The fundamental questions of "what to produce," "how to produce," and
"for whom to produce" are determined in a market economy primarily by:
A) Government planning
B) Consumer sovereignty and the price mechanism
C) A central planning committee
D) Tradition and custom
7. A positive economic statement is:
A) A statement about what ought to be
B) A value judgment
C) A statement that can be tested against facts
D) Always true by definition
8. Which of the following is a normative statement?
A) The unemployment rate is 7%.
B) When the price rises, quantity demanded falls.
C) The government should increase taxes on the wealthy.
D) Increased investment leads to economic growth.
9. Ceteris paribus means:
A) The value of everything
B) Let all things change
, C) Other things being equal
D) The fallacy of composition
10. The branch of economics that uses value judgments is:
A) Positive economics
B) Normative economics
C) Descriptive economics
D) Financial economics
Section 2: Demand, Supply, and Market Equilibrium
11. The law of demand states that, ceteris paribus:
A) There is a positive relationship between price and quantity demanded.
B) There is a negative relationship between price and quantity demanded.
C) There is no relationship between price and quantity demanded.
D) Demand is always constant.
12. A movement along a demand curve is caused by a change in:
A) Consumer income
B) The price of the good itself
C) The price of a related good
D) Tastes and preferences
13. Which of the following would cause a shift of the demand curve for coffee
to the right?
A) A decrease in the price of coffee
B) An increase in the price of tea (a substitute)
C) A decrease in consumer income (assuming coffee is a normal good)
D) A health report stating coffee is harmful
14. If goods A and B are complements, an increase in the price of good A will
lead to:
A) An increase in the demand for good B.
B) A decrease in the demand for good B.
2023 || Verified Microeconomics Assessment Solutions
Description: MIP2602 Assignment 1 Quiz (2023) with complete verified questions
and answers. Covers key principles of microeconomics, including market
equilibrium, elasticity, and consumer behavior. Ideal for UNISA students preparing
for semester assessments.
Keywords: MIP2602 assignment 1 2023 microeconomics quiz answers unisa
economics assignment market equilibrium questions verified unisa solutions
Section 1: Introduction to Microeconomics and Basic Concepts
1. What is the primary focus of microeconomics?
A) The behavior of the entire economy
B) The overall price level and inflation
C) The decision-making of individual households and firms
D) National income and output
2. The concept of scarcity in economics refers to:
A) A shortage of a particular good
B) The fact that human wants exceed the resources available to satisfy them
C) Poverty in developing countries
D) An unlimited supply of resources
3. The opportunity cost of a decision is:
A) The financial cost of that decision
B) The value of the next best alternative that is forgone
C) The total cost of production
D) The cost of the chosen alternative
,4. When a production possibilities frontier (PPF) is bowed outward, it
illustrates:
A) Constant opportunity costs
B) Decreasing opportunity costs
C) Increasing opportunity costs
D) Zero opportunity costs
5. An economy is operating efficiently when it:
A) Produces a equal amount of all goods
B) Uses all its resources and is producing on its PPF
C) Has a high level of unemployment
D) Produces inside its PPF
6. The fundamental questions of "what to produce," "how to produce," and
"for whom to produce" are determined in a market economy primarily by:
A) Government planning
B) Consumer sovereignty and the price mechanism
C) A central planning committee
D) Tradition and custom
7. A positive economic statement is:
A) A statement about what ought to be
B) A value judgment
C) A statement that can be tested against facts
D) Always true by definition
8. Which of the following is a normative statement?
A) The unemployment rate is 7%.
B) When the price rises, quantity demanded falls.
C) The government should increase taxes on the wealthy.
D) Increased investment leads to economic growth.
9. Ceteris paribus means:
A) The value of everything
B) Let all things change
, C) Other things being equal
D) The fallacy of composition
10. The branch of economics that uses value judgments is:
A) Positive economics
B) Normative economics
C) Descriptive economics
D) Financial economics
Section 2: Demand, Supply, and Market Equilibrium
11. The law of demand states that, ceteris paribus:
A) There is a positive relationship between price and quantity demanded.
B) There is a negative relationship between price and quantity demanded.
C) There is no relationship between price and quantity demanded.
D) Demand is always constant.
12. A movement along a demand curve is caused by a change in:
A) Consumer income
B) The price of the good itself
C) The price of a related good
D) Tastes and preferences
13. Which of the following would cause a shift of the demand curve for coffee
to the right?
A) A decrease in the price of coffee
B) An increase in the price of tea (a substitute)
C) A decrease in consumer income (assuming coffee is a normal good)
D) A health report stating coffee is harmful
14. If goods A and B are complements, an increase in the price of good A will
lead to:
A) An increase in the demand for good B.
B) A decrease in the demand for good B.
