Revision

1. Those who supply financial capital through saving expect to ______

a. receive a rate of return
b. pay a rate of return
c. pay interest
d. All of these

2. ________ salary or wage leads to an increase in the quantity of labor demanded.

a. Higher
b. Lower
b. Higher salary and lower salary
d. Increase

3. The markets for employees or jobs is --------

a. Financial market
b. Product market
c. Labor market
d. International market

4. ________ salary or wage leads to an increase in the quantity of labor demanded.

a. Higher
b. Lower
b. Higher salary and lower salary
d. Increase

5. ________ price for labor leads to a higher quantity of labor supplied

a. Higher
b. Lower
b. Same
d. none of these

6. A shortage exists in a market if _____.

a. supply exceeds demand
b. demand less than supply.
c. current price is below equilibrium price.
d. current price is above equilibrium price.

7. If there is an increase in output, what happens to the demand for labor?

a. increase
b. decrease
c. no change
d. labor price decrease

8. The State Bank of Vietnam increase interest rates for borrowings among banks. This
leads to a______.
a. rise in supply
b. rise in demand
c. fall in supply
d. no increase or decrease in quantity of loans

9. ____ is the markets for saving or borrowing.

10. ________ price leads to a lower quantity of labor supplied.

a. Higher
b. Lower
b. Same
d. none of these

11. Those who demand financial capital by receiving funds expect to ______
a. receive a rate of return
b. pay a rate of return
c. receive interest return
d. All of these

12. The quantity supply curve will shift _____ if the higher price for labor.
a. outward
b. downward
c. leftward
d. remain in the equilibrium

13. If there is an increase in the price of inputs, labor demand curve

a. shift outward
b. shift inward
c. no change
d. labor price decrease or increase

14. The banks decrease their interest rates, what happen to demand in the financial
market?
a. increase
b. decrease
c. no change in credit cards
d. loans decrease or increase

15. Demand is elastic if the price elasticity of demand is _____.

a. less than 1.
b. equal to 1.
c. equal to 0.
d. greater than 1.

16. Goods with many close substitutes tend to have

a. more elastic demands.
b. less elastic demands.
c. unit elastic.
d. income elastic

17. If the industry is currently producing at a point inside its production possibilities
frontier then the industry is ________.
a. using all available resources
b. not using all available resources
c. efficient
d. producing to maximum capacity

18. _____ is the economic model which shows that the economy is basically consists of
households and firms that interact in two markets is _______.

19. Economists use opportunity cost in analyzing ____.

a. natural advantage.
b. trading advantage.
c. comparative advantage.
d. absolute advantage.

20. The demand for a good or service is determined by ______.

a. those who buy the good or service.
b. the government.
c. those who sell the good or service.
d. manufacturers.

21. The increase in quantity demanded shifts demand curve to the _____ direction.
a. downward-right
b. left
c. left and right
d. downward

22. The banks increase their interest rates, what happen to supply in the financial
market?
a. increase
b. decrease
c. no change in credit cards
d. loans decrease or increase

23. When quantity demanded responds strongly to changes in price, demand is

a. inelastic.
b. elastic.
c. infinity.
d. perfectly inelastic.
24. ____ is the point at which the supply and demand curves intersect.

25. The banks lower their interest rates, what happen to supply in the financial market?
a. increase
b. decrease
c. no change in credit cards
d. loans decrease or increase

26. If there is decrease in educated, trained and experienced labor force, what happen
to labor demand?
a. increase
b. decrease
c. no change
d. labor price decrease or increase

27. The State Bank of Vietnam reduces interest rates for borrowings among banks. This
leads to a ______.
a. rise in demand
b. fall in demand
c. rise in supply
d. no increase or decrease in quantity of loans

28. The economic system wherein the decision-making is decentralized and the private
individuals or groups of private individuals own and operate the means of production,
and supply goods and services based on demand is known as _______.
a. Command economy
b. Traditional economy
c. Market economy
d. Traditional economy

29. If there is an increase in the availability of more and better technology, what happen
to labor demand?
a. increase
b. decrease
c. no change
d. labor price decrease or increase

30. Surplus exists if _____.

a. demand exceeds supply.
b. supply less than demand .
c. current price is above equilibrium price.
d. current price is below equilibrium price.

31. _______ leads to a decrease in the quantity of labor demanded by employers.

a. Higher salary
b. Lower salary
b. Higher salary and lower salary
d. Decrease

32. The supply of a good or service is determined by ______

a. those who buy products.
b. the government.
c. those who sell products.
d. manufacturers.

33. If there is a decrease in the availability new technology, labor demand curve
a. shift outward
b. shift inward
c. no change
d. labor price decrease or increase

34. If the demand for a good increase when income increases, then the good is a(n)
_____.
a. normal good.
b. regular good.
c. luxury good.
d. inferior good.

35. One example of demand financial capital is ______

a. borrowings
b. goods
c. savings
d. expenses

36. The quantity at which the supply is the same with demand is called _____
a. market and demand supply
b. equilibrium quantity
c. equilibrium price
d. equilibrium point

37. If there is a decrease in output, what happens to the demand for labor?
a. increase
b. decrease
c. no change
d. labor price decrease or increase

38. If there is flexibility in government regulations for qualification of workers, what

happen to labor demand?
a. increase
b. decrease
c. no change
d. labor price decrease or increase
39. Those who save money or make financial investments are on the _______side of
the financial market.
a. demand
b. labor
c. supply
d. financial

40. A legal minimum on the price at which a good can be sold is called a price
a. subsidy.
b. floor.
c. support.
d. ceiling.

41. If there is an increase in the number of companies, labor demand curve

a. shift outward
b. shift inward
c. no change
d. labor price decrease or increase

42. An economic system wherein the government decides what goods and services will
be produced, what prices it will charge for them, what methods of production to use and
sets wages for workers is called ______.
a. Command economy
b. Traditional economy
c. Market economy
d. Traditional economy

43. Any production point outside the production possibilities frontier is

a. profitable.
b. associated with unused resources.
c. attainable.
d. is unattainable.

44. If there is a decrease in the price of inputs, labor demand curve

a. shift outward
b. shift inward
c. no change
d. labor price decrease or increase

45. If the price for labor is lower, the quantity supply curve will shift
a. outward
b. downward
c. to the left and right
d. and remain in the equilibrium
46. A group of buyers and sellers of a particular good or service is called ______.
a. middlemen.
b. demand market.
c. market.
d. supply.

47. A decrease in quantity demanded shifts the demand curve to the _____ direction.
a. rightward
b. leftward
c. vertical
d. upward-right

48. A decrease in the price of a good will _____ the quantity demanded.
a. left shift
b. decrease
c. increase
d. reduce

49. If there is a decrease in the number of companies, what happen to labor demand?
a. shift outward
b. shift inward
c. no change
d. labor price decrease or increase

50. A table that shows the relationship between the price and the quantity demanded of
a good is called a ______.

51. The price at which the supply and demand curves intersect is called _____
a. market and demand supply.
b. equilibrium quantity.
c. equilibrium price.
d. equilibrium.

52. One example of supply financial capital is _____

a. loan
b. goods
c. savings
d. expenses

53. The legal minimum or maximum prices set for specified goods is _____.
a. Floor price.
b. government subsidy.
c. ceiling price
d. price control.

54. The amount of money that a buyer pays for a unit of the specific good or service is
____
a. Cost
b. Price
c. Expenses
d. Purchases

55. If the price for labor is lower, the quantity supply curve will shift
a. outward
b. downward
c. to the left and right
d. and remain in the equilibrium

56. If the demand for a good falls when income falls, the good is a(n) _______.
a. normal good.
b. regular good.
c. luxury good.
d. inferior good.

57. If there is an increase in the many strict government regulations, what happen to
labor demand?
a. increase
b. decrease
c. no change
d. labor price decrease or increase

58. If there is increase in more educated, more trained and more experienced labor
force, what happen to labor demand?
a. increase
b. decrease
c. no change
d. labor price decrease or increase

59. Any company producing on its production possibilities frontier is ____

a. efficient
b. not using its technology
c. not using all of its resources.
d. producing less output.

60. The law of supply states that, other things equal, an increase in price causes ____.
a. quantity supplied to increase.
b. quantity supplied to decrease.
c. quantity demanded to increase.
d. quantity demanded to decrease.
61. The table that shows the price and quantity supplied is ____.
a. supply schedule
b. demand schedule
c. demand curve.
d. supply curve.

62. _____ is the field of economics which focuses on the actions of individual agents
within the economy, like households, workers, and businesses.

63. If there is a decrease in the availability new technology, labor demand curve
a. shift outward
b. shift inward
c. no change
d. labor price decrease or increase

64. If the quantity supplied is the same regardless of price, then supply is
a. elastic.
b. perfectly elastic.
c. perfectly inelastic.
d. inelastic.

65. The quantity supply curve will shift _____ if the higher price for labor.
a. outward
b. downward
c. leftward
d. remain in the equilibrium

66. The increase in income results to the decrease in the demand for a good, then the
good is a(n)
a. substitute good.
b. complementary good.
c. normal good.
d. inferior good.

67. The banks increase their interest rates, what happen to demand in the financial
market?
a. increase
b. decrease
c. no change in credit cards
d. loans decrease or increase

68. Demand is inelastic if the price elasticity of demand is

a. less than 1.
b. equal to 1.
c. greater than 1.
d. equal to 0.

69. For a good that is a luxury, demand tends to be

a. inelastic.
b. elastic.
c. unit elastic.
d. unchanged

70. An increase in the price of a good will ______ the quantity demanded.
a. increase
b. rise
c. right shift
d. decrease

71. The graph that shows the price and quantity supplied is ____.
a. supply schedule
b. demand schedule
c. demand curve.
d. supply curve.

72. _____ is the legal maximum on the price at which a good can be sold.

73. Those who borrow money are on the _______ side of the financial market.
a. demand
b. labor
c. supply
d. financial

74. In the economy, the society must figure out the following economic questions except
_______.
a. WHAT to produce
b. WHEN to produce
c. HOW MUCH to produce
d. HOW to Produce it

75. Absolute advantage is comparing the production of 2 or more ____.

a. comparative advantage
b. producers
c. inefficiency
d. opportunity cost
76. The sum of all the individual supply is ______.
a. market demand.
b. market supply.
c. supply curve.
d. demand curve.

77. If a 40% change in price results in a 20% change in quantity supplied, compute the
price elasticity of supply. Is it elastic or inelastic?

78. A producer produces 550 units when the market price is $6 per unit and produces
800 units but when the market price increases to $7 per unit. Using the midpoint
method, compute the price elasticity of supply. Is it elastic or inelastic?

79. A Company needs 3 hours to make 1 table and 4 hours to make 1 bed. Compute
how many tables or beds can be produced with 60 hours available.

80. If an 14% change in price results in a 19% change in quantity supplied. Compute
the price elasticity of supply. Is it elastic or inelastic?

81. When the price of a good is $5, the quantity demanded is 100 units per month.
When the price is $7, the quantity demanded is 70 units per month. Using the midpoint
method, compute the price elasticity of demand. Is it elastic or inelastic?

82. A Company needs 7 hours to make 1 computer and 9 hours to make 1 refrigerator.
Compute how many computers or refrigerators can be produced with 60 hours
available.

82.
Given: The price for copper cup is $3 per piece and the copper bowl is $2 per piece.
The consumer has $30 available to spend.
Instructions:
1. Compute any product combination. Write all your computation.
2. Draw a graph and plot the product combination assuming that all of the consumer's
income is spent on cup (and none on bowl), and if all of the consumer's income is
spent on bowl (and none on cup).
3. Draw a budget constraint straight line to connect the dots.