choose the correct answer

11\ Identify which one of the following is related to the issuesof macroeconomics?

a\ The effect of an increase in the tax on oil sales

B\The effect of increasing the aggregate supply

C\The purchasing decisions that an individual consumer makes

D\ The hiring decisions that a company makes

12\ “Salary should be increased as there is an increase in costof living”. This is an example of:

A\ Scientific statement

B\Normative statement

C\ Negative statement

D\Positive statement

13\ What will be the cross elasticity of demand for iPods andiTunes -songs?

A\Zero

B\ Negative

C\ Positive

D\ Hard to know

14\ In economics, the long run is observed as the time period inwhich we find:

A\All factors of production are fixed

B\ At least one of the factors of production is fixed

C\ All factors of production are variable

D\ Profits are negative

15\ The basic difference between individual demand curve andmarket demand curve is:

A\ Price of products

B\ Quantity demanded

C\ Number of sellers

D\ Number of consumers

16\ Identify in which one of the following market structures themarginal revenue is equal to price?

A\ Perfect competition

B\ Monopolistic competition

C\ Monopoly

D\ Oligopoly

17\ The price of cosmetics in a market is RO 10 and the demandis 280 units. When price increased to RO 11 then the demand changedto 252 units. What will be the price elasticity of demand?

A\ 0.1

B\ 1

C\ 0.2

D\ 100

18\ When government imposes a price ceiling that is binding on acompetitive market which is less than equilibrium price, it resultsin a situation of:

A\ Neither shortage nor surplus

B\ Supportive market

C\ Surplus of good

D\ Shortage of the good

19\ Which one of the following is TRUE regarding the features ofMonopoly?

A\ No barriers to firm’s entry

B\ Many substitutes for products

C\ Firm is Price taker

D\ Single Seller for product

20\ Which one of the following economic systems maintains thebalance between public and private sector?

A\ Developed economy

B\ Mixed economy

C\ Socialist economy

D\ Capitalist economy