Macroeconomics and Microeconomics Quiz
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Questions and Answers

What is the law of demand?

  • The quantity demanded for sugar has no relation to the price of sugar.
  • The quantity demanded for sugar increases due to a decrease in the price of sugar.
  • The quantity demanded for sugar decreases because of the raise in the price of sugar. (correct)
  • The quantity demanded for sugar remains constant despite changes in the price of sugar.

    • What is the law of supply?

  • The quantity supplied for sugar has no relation to the price of sugar.
  • The quantity supplied for sugar increases due to the raise in the price of sugar. (correct)
  • The quantity supplied for sugar remains constant despite changes in the price of sugar.
  • The quantity supplied for sugar decreases due to a decrease in the price of sugar.

    • What is price elasticity of demand?

  • A measure of responsiveness showing that changes in price affect the quantity demanded only slightly.
  • A measure of responsiveness showing that changes in price always cause the quantity demanded to decrease.
  • A measure of responsiveness showing that changes in price have no effect on the quantity demanded.
  • A measure of responsiveness showing that changes in price have a significant effect on the quantity demanded. (correct)

    • How does the law of supply relate to the price of sugar?

    <p>The quantity supplied for sugar increases when the price of sugar increases, to cover the marginal cost of production.</p> Signup and view all the answers

    What does an upwards supply curve indicate?

    <p>An increase in the quantity supplied as the price increases.</p> Signup and view all the answers

    What is the purpose of the Malaysia government's sugar subsidy?

    <p>To encourage sugar manufacturers to produce more and reduce the cost of production</p> Signup and view all the answers

    How does the distribution of sugar to wholesalers and retailers help resolve shortage issues?

    <p>By ensuring a fair distribution of sugar across different regions</p> Signup and view all the answers

    What is the purpose of implementing a price ceiling for sugar by the Malaysia Government?

    <p>To control sellers from setting unreasonably high prices for sugar</p> Signup and view all the answers

    How does the strong barrier of entry for new sugar manufacturers affect the market?

    <p>It protects existing manufacturers from competition and limits market entry</p> Signup and view all the answers

    What is the goal of Malaysia's policy regarding sugar supply and distribution?

    <p>To ensure equitable access to sugar in all regions and prevent shortages</p> Signup and view all the answers

    What role can the government play in encouraging local production of sugar?

    <p>Providing financial incentives like subsidies to local farmers</p> Signup and view all the answers

    How can the government support farmers in enhancing agricultural techniques for sugar production?

    <p>Investing in extensive research and development programs</p> Signup and view all the answers

    What is one of the measures the government can adopt to bolster domestic production capabilities?

    <p>Providing access to affordable farming equipment for farmers</p> Signup and view all the answers

    How can the government ensure a reliable outlet for farmers' produce?

    <p>Facilitating easier access to markets for the farmers</p> Signup and view all the answers

    What is the main purpose of the government's initiatives to support local production of sugar?

    <p>To reduce the nation's dependency on imported sugar</p> Signup and view all the answers

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