ECO401 - Quiz No. 5
Tuesday, February 16, 2010 Posted In Eco Edit ThisQuestion # 15 of 15 ( Start time: 01:20:42 AM ) Total Marks: 1
In the kinked demand curve model, if one firm reduces its price:
Select correct option:
Other firms will also reduce their price
Other firms will compete on a non-price basis
Other firms will raise their price
Both (a) and (b) are correct
Question # 14 of 15 ( Start time: 01:20:21 AM ) Total Marks: 1
A (n) __________ may start a price war in order to get a larger share of the market
Select correct option:
Perfect competitor
Oligopolist
Monopolist
Economist
Question # 13 of 15 ( Start time: 01:19:51 AM ) Total Marks: 1
Goods X and Y are complements while goods X and Z are substitutes. If the supply of good X increases:
Select correct option:
The demand for both Y and Z will increase
The demand for Y will increase while the demand for Z will decrease
The demand for Y will decrease while the demand for Z will increase
The demand for both Y and Z will decrease
Question # 12 of 15 ( Start time: 01:19:18 AM ) Total Marks: 1
From year 2002 to year 2003, personal income rose by $500 billion. If the Marginal Propensity to Consume = 0.9, then personal consumption expenditures rose by:
Select correct option:
$45.0 billion.
$500 billion.
$450 billion.
$50 billion.
Question # 11 of 15 ( Start time: 01:19:00 AM ) Total Marks: 1
Which of the following is a flow variable?
Select correct option:
The value of the house in which you live
The balance in your savings account
Your monthly consumption of hamburgers
The number of hamburgers in your refrigerator at the beginning of the month
Question # 10 of 15 ( Start time: 01:18:39 AM ) Total Marks: 1
According to Classical models, the level of employment is determined primarily by:
Select correct option:
The level of aggregate demand for goods and services.
Prices and wages.
Government taxation.
Government spending.
Question # 9 of 15 ( Start time: 01:18:00 AM ) Total Marks: 1
A schedule which shows the various amounts of a product consumers are willing and able to purchase at each price in a series of possible prices during a specified period of time is called:
Select correct option:
Supply
Demand
Quantity supplied
Quantity demanded
The slope of the saving function (or line) is the:
Select correct option:
Average propensity to save.
Average propensity to consume.
Marginal propensity to save.
Marginal propensity to consume.
Question # 7 of 15 ( Start time: 01:16:52 AM ) Total Marks: 1
In a macroeconomic model, without foreign trade or government spending, aggregate demand is the sum of:
Select correct option:
Personal saving and private investment.
Personal saving and personal consumption.
Personal consumption and personal income.
Personal consumption and private investment.
Question # 6 of 15 ( Start time: 01:16:20 AM ) Total Marks: 1
Potential GDP is an estimate of the economy’s ability to produce goods and services if:
Select correct option:
Labor force is fully employed.
Price level is stable.
Trade balance is zero.
Federal budget is balanced.
Question # 5 of 15 ( Start time: 01:15:47 AM ) Total Marks: 1
In Keynesian economics, an inflationary gap results if:
Select correct option:
Aggregate expenditures are less than aggregate production.
Aggregate expenditures are greater than aggregate production.
Aggregate expenditures are equal to aggregate production.
There are no changes in inventories.
Question # 4 of 15 ( Start time: 01:15:28 AM ) Total Marks: 1
In the long run, competitive firms MUST be profit maximizes, because if they do not maximize profits:
Select correct option:
They will attract new competitors.
They will not be price takers.
The profits that they do earn will only cover variable costs.
They will not survive.
Question # 3 of 15 ( Start time: 01:15:04 AM ) Total Marks: 1
The market structure in which there is interdependence among firms is:
Select correct option:
Monopolistic competition.
Oligopoly.
Perfect competition.
Monopoly.
Question # 2 of 15 ( Start time: 01:14:30 AM ) Total Marks: 1
In which case, total expenditure in an economy is not equal to total income?
Select correct option:
If total saving is larger than total investment.
If net exports are not zero.
If inventory investment is negative.
None of the given options--they are always equal.
Question # 1 of 15 ( Start time: 01:14:06 AM ) Total Marks: 1
According to the classical economists, those who are not working:
Select correct option:
Are unable to find a job at the current wage rate.
Are too productive to be hired at the current wage.
Have choosen not to work at the market wage.
Have given up looking for a job, but would accept a job at the current wage if one were offered to them.
In the kinked demand curve model, if one firm reduces its price:
Select correct option:
Other firms will also reduce their price
Other firms will compete on a non-price basis
Other firms will raise their price
Both (a) and (b) are correct
Question # 14 of 15 ( Start time: 01:20:21 AM ) Total Marks: 1
A (n) __________ may start a price war in order to get a larger share of the market
Select correct option:
Perfect competitor
Oligopolist
Monopolist
Economist
Question # 13 of 15 ( Start time: 01:19:51 AM ) Total Marks: 1
Goods X and Y are complements while goods X and Z are substitutes. If the supply of good X increases:
Select correct option:
The demand for both Y and Z will increase
The demand for Y will increase while the demand for Z will decrease
The demand for Y will decrease while the demand for Z will increase
The demand for both Y and Z will decrease
Question # 12 of 15 ( Start time: 01:19:18 AM ) Total Marks: 1
From year 2002 to year 2003, personal income rose by $500 billion. If the Marginal Propensity to Consume = 0.9, then personal consumption expenditures rose by:
Select correct option:
$45.0 billion.
$500 billion.
$450 billion.
$50 billion.
Question # 11 of 15 ( Start time: 01:19:00 AM ) Total Marks: 1
Which of the following is a flow variable?
Select correct option:
The value of the house in which you live
The balance in your savings account
Your monthly consumption of hamburgers
The number of hamburgers in your refrigerator at the beginning of the month
Question # 10 of 15 ( Start time: 01:18:39 AM ) Total Marks: 1
According to Classical models, the level of employment is determined primarily by:
Select correct option:
The level of aggregate demand for goods and services.
Prices and wages.
Government taxation.
Government spending.
Question # 9 of 15 ( Start time: 01:18:00 AM ) Total Marks: 1
A schedule which shows the various amounts of a product consumers are willing and able to purchase at each price in a series of possible prices during a specified period of time is called:
Select correct option:
Supply
Demand
Quantity supplied
Quantity demanded
The slope of the saving function (or line) is the:
Select correct option:
Average propensity to save.
Average propensity to consume.
Marginal propensity to save.
Marginal propensity to consume.
Question # 7 of 15 ( Start time: 01:16:52 AM ) Total Marks: 1
In a macroeconomic model, without foreign trade or government spending, aggregate demand is the sum of:
Select correct option:
Personal saving and private investment.
Personal saving and personal consumption.
Personal consumption and personal income.
Personal consumption and private investment.
Question # 6 of 15 ( Start time: 01:16:20 AM ) Total Marks: 1
Potential GDP is an estimate of the economy’s ability to produce goods and services if:
Select correct option:
Labor force is fully employed.
Price level is stable.
Trade balance is zero.
Federal budget is balanced.
Question # 5 of 15 ( Start time: 01:15:47 AM ) Total Marks: 1
In Keynesian economics, an inflationary gap results if:
Select correct option:
Aggregate expenditures are less than aggregate production.
Aggregate expenditures are greater than aggregate production.
Aggregate expenditures are equal to aggregate production.
There are no changes in inventories.
Question # 4 of 15 ( Start time: 01:15:28 AM ) Total Marks: 1
In the long run, competitive firms MUST be profit maximizes, because if they do not maximize profits:
Select correct option:
They will attract new competitors.
They will not be price takers.
The profits that they do earn will only cover variable costs.
They will not survive.
Question # 3 of 15 ( Start time: 01:15:04 AM ) Total Marks: 1
The market structure in which there is interdependence among firms is:
Select correct option:
Monopolistic competition.
Oligopoly.
Perfect competition.
Monopoly.
Question # 2 of 15 ( Start time: 01:14:30 AM ) Total Marks: 1
In which case, total expenditure in an economy is not equal to total income?
Select correct option:
If total saving is larger than total investment.
If net exports are not zero.
If inventory investment is negative.
None of the given options--they are always equal.
Question # 1 of 15 ( Start time: 01:14:06 AM ) Total Marks: 1
According to the classical economists, those who are not working:
Select correct option:
Are unable to find a job at the current wage rate.
Are too productive to be hired at the current wage.
Have choosen not to work at the market wage.
Have given up looking for a job, but would accept a job at the current wage if one were offered to them.
The gold standard was an example of what kind of exchange-rate system?
Select correct option:
A freely floating exchange rate.
A managed floating exchange rate.
A fixed exchange rate.
A non-convertible exchange rate.
Question # 2 of 15 ( Total Marks: 1
Many economists and government analysts have investigated the effect of a minimum wage on labour markets. The general conclusion reached by the investigators is that:
Select correct option:
The overall effect of the minimum wage is an increase in the unemployment level.
Teenagers gain most of the beneficial employment effects of the minimum wage.
All industries are equally affected by the minimum wage laws.
Over a period of time, the minimum wage laws will increase employment in the economy.
Question # 3 of 15 1
When the marginal revenue product is greater than the marginal input cost of labor, the profit maximizing firm will:
Select correct option:
Hire more
Hire less
Maintain the same employment
Decrease output
Question # 4 of 15 ( Start time: 02:38:10 PM ) Total Marks: 1
This market situation is much like a pure monopoly except that its member firms tend to cheat on agreed upon price and output strategies. What is it?
Select correct option:
Duopol
Cartel
Market sharing monopoly
Natural monopoly
Question # 5 of 15 Total Marks: 1
In a free-market economy the allocation of resources is determined by:
Select correct option:
Votes taken by consumers
A central planning authority
By consumer preferences
The level of profits of firms
Question # 6 of 15 Total Marks: 1
The war in Iraq sent oil prices spiraling upwards, resulting in an increase in the overall price level. This is an example of which type of inflation?
Select correct option:
Cost-pull
Cost-push.
Demand-pull.
Demand-push.
Question # 7 of 15 Total Marks: 1
Assume that the current market price is below the market clearing level. We would expect:
Select correct option:
A surplus to accumulate.
Downward pressure on the current market price.
Upward pressure on the current market price.
Lower production during the next time period.
Question # 8 of 15 ( Total Marks: 1
If a firm operates in a perfectly competitive market, then it will most likely:
Select correct option:
Advertise its product on television.
Have difficult time obtaining information about the market price.
Settle for whatever price is offered.
Have an easy time keeping other firms out of the market.
Question # 9 of 15 Total Marks: 1
Keynes advocated demand-side policies to lift the economy out of that equilibrium towards full employment.
Select correct option:
True
False
Question # 10 of 15 Total Marks: 1
In Keynesian economics, equilibrium can occur:
Select correct option:
Only at full employment.
Only at levels less than full employment.
Only at levels greater than full employment.
At any level of aggregate output equal to aggregate expenditures.
Question # 11 of 15 Total Marks: 1
Which of the following events shifts the short-run aggregate supply curve to the right?
Select correct option:
A decrease in the money supply
A drop in oil prices
An increase in government spending on military equipment
An increase in price expectations
Question # 13 of 15 Total Marks: 1
Assume that steak and potatoes are complements. When the price of steak goes up, the demand curve for potatoes:
Select correct option:
Shifts to the left.
Shifts to the right.
Remains constant.
Shifts to the right initially and then returns to its original position.
Question # 14 of 15 Total Marks: 1
When the price of petrol rises 10%, the quantity of petrol purchased falls by 8%. The demand for petrol is:
Select correct option:
Perfectly elastic
Unit elastic
Elastic
Inelastic
Question # 15 of 15 Total Marks: 1
Inflation:
Select correct option:
Reduces both the purchasing power of the dollar and one's real income.
Reduces the purchasing power of the dollar and increases one's real income.
Reduces the purchasing power of the dollar but may have no impact on one's real income.
Increases the purchasing power of the dollar and reduces one's real income.
Question # 1 of 15 ( Start time: 07:21:13 PM ) Total Marks: 1
According to Classical models, the level of employment is determined primarily by:
Select correct option:
The level of aggregate demand for goods and services.
Prices and wages.
Government taxation.
Government spending.
Question # 2 of 15 ( Start time: 07:22:36 PM ) Total Marks: 1
Marginal utility is best described as:
Select correct option:
The additional satisfaction gained by consumption of the last good
The per unit satisfaction of the good consumed
The total satisfaction gained from the total consumption of the good
The change in satisfaction from consuming one additional unit of the good
Question # 3 of 15 ( Start time: 07:23:34 PM ) Total Marks: 1
A market with few entry barriers and with many firms that sell differentiated products is known as:
Select correct option:
Purely competitive
A monopoly
Monopolistically competitive
Oligopolistic
Question # 4 of 15 ( Start time: 07:25:00 PM ) Total Marks: 1
If the cost of computer components falls, then
Select correct option:
The demand curve for computers shifts to the right.
The demand curve for computers shifts to the left.
The supply curve for computers shifts to the right
The supply curve for computers shifts to the left
Question # 5 of 15 ( Start time: 07:25:54 PM ) Total Marks: 1
In a free-market economy the allocation of resources is determined by:
Select correct option:
Votes taken by consumers.
A central planning authority.
By consumer preferences.
The level of profits of firms.
Question # 6 of 15 ( Start time: 07:26:11 PM ) Total Marks: 1
The numerical measurement of a consumer’s preference is called:
Select correct option:
Satisfaction
Use
Pleasure
Utility
Question # 7 of 15 ( Start time: 07:26:55 PM ) Total Marks: 1
Final goods are meant for:
Select correct option:
Direct use by the consumers
further processing
The term do not exist
None
Question # 8 of 15 ( Start time: 07:27:24 PM ) Total Marks: 1
The AD Curve is downward sloping because of all of the following reasons except that:
Select correct option:
The Fed raises real interest rates as inflation increases
The Fed raises nominal interest rates as inflation rises
The Fed intentionally tries to reduce the level of aggregate demand when inflation rises.
The Fed intentionally tries to increase the level of output as unemployment increases
Question # 9 of 15 ( Start time: 07:28:12 PM ) Total Marks: 1
In monopolist market, a new entrant firm should produce where:
Select correct option:
Marginal Cost < style="margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; padding-top: 0px; padding-right: 0px; padding-bottom: 0px; padding-left: 0px; ">
Marginal Cost > Marginal Revenue.
Marginal Cost = Marginal Revenue.
Marginal Cost = Average Revenue.
Question # 10 of 15 ( Start time: 07:29:41 PM ) Total Marks: 1
Which of the following events shifts the short-run aggregate supply curve to the right?
Select correct option:
A decrease in the money supply
A drop in oil prices
An increase in government spending on military equipment
An increase in price expectations
Question # 11 of 15 ( Start time: 07:30:08 PM ) Total Marks: 1
The trend of unemployment over the last forty years is:
Select correct option:
A decrease in unemployment.
It has remained largely unchanged.
An increase in unemployment.
It is too difficult to tell so don't bother.
Question # 12 of 15 ( Start time: 07:31:16 PM ) Total Marks: 1
A firm never operates:
Select correct option:
At the minimum of its average total cost curve.
At the minimum of its average variable cost curve.
On the downward-sloping portion of its average total cost curve.
On the downward-sloping portion of its average variable cost curve.
Question # 13 of 15 ( Start time: 07:31:34 PM ) Total Marks: 1
Growth rate of per capita income is equal to:
Select correct option:
Growth rate of total output - Growth rate of population.
Growth rate of total output / Growth rate of population.
Growth rate of population / Growth rate of total output.
Growth rate of total output + Growth rate of population.
Question # 14 of 15 ( Start time: 07:32:28 PM ) Total Marks: 1
If a firm operates in a perfectly competitive market, then it will most likely:
Select correct option:
Advertise its product on television.
Have difficult time obtaining information about the market price.
Settle for whatever price is offered.
Have an easy time keeping other firms out of the market.
Question # 15 of 15 ( Start time: 07:33:33 PM ) Total Marks: 1
Current account deficit is equal to:
Select correct option:
Private sector resource deficit.
Government budget deficit.
Private sector resource deficit + Government budget deficit.
None of the given options.
According to Classical models, the level of employment is determined primarily by:
Select correct option:
The level of aggregate demand for goods and services.
Prices and wages.
Government taxation.
Government spending.
Question # 2 of 15 ( Start time: 07:22:36 PM ) Total Marks: 1
Marginal utility is best described as:
Select correct option:
The additional satisfaction gained by consumption of the last good
The per unit satisfaction of the good consumed
The total satisfaction gained from the total consumption of the good
The change in satisfaction from consuming one additional unit of the good
Question # 3 of 15 ( Start time: 07:23:34 PM ) Total Marks: 1
A market with few entry barriers and with many firms that sell differentiated products is known as:
Select correct option:
Purely competitive
A monopoly
Monopolistically competitive
Oligopolistic
Question # 4 of 15 ( Start time: 07:25:00 PM ) Total Marks: 1
If the cost of computer components falls, then
Select correct option:
The demand curve for computers shifts to the right.
The demand curve for computers shifts to the left.
The supply curve for computers shifts to the right
The supply curve for computers shifts to the left
Question # 5 of 15 ( Start time: 07:25:54 PM ) Total Marks: 1
In a free-market economy the allocation of resources is determined by:
Select correct option:
Votes taken by consumers.
A central planning authority.
By consumer preferences.
The level of profits of firms.
Question # 6 of 15 ( Start time: 07:26:11 PM ) Total Marks: 1
The numerical measurement of a consumer’s preference is called:
Select correct option:
Satisfaction
Use
Pleasure
Utility
Question # 7 of 15 ( Start time: 07:26:55 PM ) Total Marks: 1
Final goods are meant for:
Select correct option:
Direct use by the consumers
further processing
The term do not exist
None
Question # 8 of 15 ( Start time: 07:27:24 PM ) Total Marks: 1
The AD Curve is downward sloping because of all of the following reasons except that:
Select correct option:
The Fed raises real interest rates as inflation increases
The Fed raises nominal interest rates as inflation rises
The Fed intentionally tries to reduce the level of aggregate demand when inflation rises.
The Fed intentionally tries to increase the level of output as unemployment increases
Question # 9 of 15 ( Start time: 07:28:12 PM ) Total Marks: 1
In monopolist market, a new entrant firm should produce where:
Select correct option:
Marginal Cost < style="margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; padding-top: 0px; padding-right: 0px; padding-bottom: 0px; padding-left: 0px; ">
Marginal Cost > Marginal Revenue.
Marginal Cost = Marginal Revenue.
Marginal Cost = Average Revenue.
Question # 10 of 15 ( Start time: 07:29:41 PM ) Total Marks: 1
Which of the following events shifts the short-run aggregate supply curve to the right?
Select correct option:
A decrease in the money supply
A drop in oil prices
An increase in government spending on military equipment
An increase in price expectations
Question # 11 of 15 ( Start time: 07:30:08 PM ) Total Marks: 1
The trend of unemployment over the last forty years is:
Select correct option:
A decrease in unemployment.
It has remained largely unchanged.
An increase in unemployment.
It is too difficult to tell so don't bother.
Question # 12 of 15 ( Start time: 07:31:16 PM ) Total Marks: 1
A firm never operates:
Select correct option:
At the minimum of its average total cost curve.
At the minimum of its average variable cost curve.
On the downward-sloping portion of its average total cost curve.
On the downward-sloping portion of its average variable cost curve.
Question # 13 of 15 ( Start time: 07:31:34 PM ) Total Marks: 1
Growth rate of per capita income is equal to:
Select correct option:
Growth rate of total output - Growth rate of population.
Growth rate of total output / Growth rate of population.
Growth rate of population / Growth rate of total output.
Growth rate of total output + Growth rate of population.
Question # 14 of 15 ( Start time: 07:32:28 PM ) Total Marks: 1
If a firm operates in a perfectly competitive market, then it will most likely:
Select correct option:
Advertise its product on television.
Have difficult time obtaining information about the market price.
Settle for whatever price is offered.
Have an easy time keeping other firms out of the market.
Question # 15 of 15 ( Start time: 07:33:33 PM ) Total Marks: 1
Current account deficit is equal to:
Select correct option:
Private sector resource deficit.
Government budget deficit.
Private sector resource deficit + Government budget deficit.
None of the given options.
Question # 1 of 15 ( Start time: 07:21:13 PM ) Total Marks: 1
According to Classical models, the level of employment is determined primarily by:
Select correct option:
The level of aggregate demand for goods and services.
Prices and wages.
Government taxation.
Government spending.
Question # 2 of 15 ( Start time: 07:22:36 PM ) Total Marks: 1
Marginal utility is best described as:
Select correct option:
The additional satisfaction gained by consumption of the last good
The per unit satisfaction of the good consumed
The total satisfaction gained from the total consumption of the good
The change in satisfaction from consuming one additional unit of the good
Question # 3 of 15 ( Start time: 07:23:34 PM ) Total Marks: 1
A market with few entry barriers and with many firms that sell differentiated products is known as:
Select correct option:
Purely competitive
A monopoly
Monopolistically competitive
Oligopolistic
Question # 4 of 15 ( Start time: 07:25:00 PM ) Total Marks: 1
If the cost of computer components falls, then
Select correct option:
The demand curve for computers shifts to the right.
The demand curve for computers shifts to the left.
The supply curve for computers shifts to the right
The supply curve for computers shifts to the left
Question # 5 of 15 ( Start time: 07:25:54 PM ) Total Marks: 1
In a free-market economy the allocation of resources is determined by:
Select correct option:
Votes taken by consumers.
A central planning authority.
By consumer preferences.
The level of profits of firms.
Question # 6 of 15 ( Start time: 07:26:11 PM ) Total Marks: 1
The numerical measurement of a consumer’s preference is called:
Select correct option:
Satisfaction
Use
Pleasure
Utility
Question # 7 of 15 ( Start time: 07:26:55 PM ) Total Marks: 1
Final goods are meant for:
Select correct option:
Direct use by the consumers
further processing
The term do not exist
None
Question # 8 of 15 ( Start time: 07:27:24 PM ) Total Marks: 1
The AD Curve is downward sloping because of all of the following reasons except that:
Select correct option:
The Fed raises real interest rates as inflation increases
The Fed raises nominal interest rates as inflation rises
The Fed intentionally tries to reduce the level of aggregate demand when inflation rises.
The Fed intentionally tries to increase the level of output as unemployment increases
Question # 9 of 15 ( Start time: 07:28:12 PM ) Total Marks: 1
In monopolist market, a new entrant firm should produce where:
Select correct option:
Marginal Cost <>
Marginal Cost > Marginal Revenue.
Marginal Cost = Marginal Revenue.
Marginal Cost = Average Revenue.
Question # 10 of 15 ( Start time: 07:29:41 PM ) Total Marks: 1
Which of the following events shifts the short-run aggregate supply curve to the right?
Select correct option:
A decrease in the money supply
A drop in oil prices
An increase in government spending on military equipment
An increase in price expectations
Question # 11 of 15 ( Start time: 07:30:08 PM ) Total Marks: 1
The trend of unemployment over the last forty years is:
Select correct option:
A decrease in unemployment.
It has remained largely unchanged.
An increase in unemployment.
It is too difficult to tell so don't bother.
Question # 12 of 15 ( Start time: 07:31:16 PM ) Total Marks: 1
A firm never operates:
Select correct option:
At the minimum of its average total cost curve.
At the minimum of its average variable cost curve.
On the downward-sloping portion of its average total cost curve.
On the downward-sloping portion of its average variable cost curve.
Question # 13 of 15 ( Start time: 07:31:34 PM ) Total Marks: 1
Growth rate of per capita income is equal to:
Select correct option:
Growth rate of total output - Growth rate of population.
Growth rate of total output / Growth rate of population.
Growth rate of population / Growth rate of total output.
Growth rate of total output + Growth rate of population.
Question # 14 of 15 ( Start time: 07:32:28 PM ) Total Marks: 1
If a firm operates in a perfectly competitive market, then it will most likely:
Select correct option:
Advertise its product on television.
Have difficult time obtaining information about the market price.
Settle for whatever price is offered.
Have an easy time keeping other firms out of the market.
Question # 15 of 15 ( Start time: 07:33:33 PM ) Total Marks: 1
Current account deficit is equal to:
Select correct option:
Private sector resource deficit.
Government budget deficit.
Private sector resource deficit + Government budget deficit.
None of the given options.
According to Classical models, the level of employment is determined primarily by:
Select correct option:
The level of aggregate demand for goods and services.
Prices and wages.
Government taxation.
Government spending.
Question # 2 of 15 ( Start time: 07:22:36 PM ) Total Marks: 1
Marginal utility is best described as:
Select correct option:
The additional satisfaction gained by consumption of the last good
The per unit satisfaction of the good consumed
The total satisfaction gained from the total consumption of the good
The change in satisfaction from consuming one additional unit of the good
Question # 3 of 15 ( Start time: 07:23:34 PM ) Total Marks: 1
A market with few entry barriers and with many firms that sell differentiated products is known as:
Select correct option:
Purely competitive
A monopoly
Monopolistically competitive
Oligopolistic
Question # 4 of 15 ( Start time: 07:25:00 PM ) Total Marks: 1
If the cost of computer components falls, then
Select correct option:
The demand curve for computers shifts to the right.
The demand curve for computers shifts to the left.
The supply curve for computers shifts to the right
The supply curve for computers shifts to the left
Question # 5 of 15 ( Start time: 07:25:54 PM ) Total Marks: 1
In a free-market economy the allocation of resources is determined by:
Select correct option:
Votes taken by consumers.
A central planning authority.
By consumer preferences.
The level of profits of firms.
Question # 6 of 15 ( Start time: 07:26:11 PM ) Total Marks: 1
The numerical measurement of a consumer’s preference is called:
Select correct option:
Satisfaction
Use
Pleasure
Utility
Question # 7 of 15 ( Start time: 07:26:55 PM ) Total Marks: 1
Final goods are meant for:
Select correct option:
Direct use by the consumers
further processing
The term do not exist
None
Question # 8 of 15 ( Start time: 07:27:24 PM ) Total Marks: 1
The AD Curve is downward sloping because of all of the following reasons except that:
Select correct option:
The Fed raises real interest rates as inflation increases
The Fed raises nominal interest rates as inflation rises
The Fed intentionally tries to reduce the level of aggregate demand when inflation rises.
The Fed intentionally tries to increase the level of output as unemployment increases
Question # 9 of 15 ( Start time: 07:28:12 PM ) Total Marks: 1
In monopolist market, a new entrant firm should produce where:
Select correct option:
Marginal Cost <>
Marginal Cost > Marginal Revenue.
Marginal Cost = Marginal Revenue.
Marginal Cost = Average Revenue.
Question # 10 of 15 ( Start time: 07:29:41 PM ) Total Marks: 1
Which of the following events shifts the short-run aggregate supply curve to the right?
Select correct option:
A decrease in the money supply
A drop in oil prices
An increase in government spending on military equipment
An increase in price expectations
Question # 11 of 15 ( Start time: 07:30:08 PM ) Total Marks: 1
The trend of unemployment over the last forty years is:
Select correct option:
A decrease in unemployment.
It has remained largely unchanged.
An increase in unemployment.
It is too difficult to tell so don't bother.
Question # 12 of 15 ( Start time: 07:31:16 PM ) Total Marks: 1
A firm never operates:
Select correct option:
At the minimum of its average total cost curve.
At the minimum of its average variable cost curve.
On the downward-sloping portion of its average total cost curve.
On the downward-sloping portion of its average variable cost curve.
Question # 13 of 15 ( Start time: 07:31:34 PM ) Total Marks: 1
Growth rate of per capita income is equal to:
Select correct option:
Growth rate of total output - Growth rate of population.
Growth rate of total output / Growth rate of population.
Growth rate of population / Growth rate of total output.
Growth rate of total output + Growth rate of population.
Question # 14 of 15 ( Start time: 07:32:28 PM ) Total Marks: 1
If a firm operates in a perfectly competitive market, then it will most likely:
Select correct option:
Advertise its product on television.
Have difficult time obtaining information about the market price.
Settle for whatever price is offered.
Have an easy time keeping other firms out of the market.
Question # 15 of 15 ( Start time: 07:33:33 PM ) Total Marks: 1
Current account deficit is equal to:
Select correct option:
Private sector resource deficit.
Government budget deficit.
Private sector resource deficit + Government budget deficit.
None of the given options.
Question # 1 of 15 ( Start time: 06:33:58 PM ) Total Marks: 1
When the demand curve is downward sloping, marginal revenue is:
Select correct option:
Equal to price.
Equal to average cost.
Less than price.
More than price.
Question # 2 of 15 ( Start time: 06:34:43 PM ) Total Marks: 1
When an industry's raw material costs increase, other things remaining the same:
Select correct option:
The supply curve shifts to the left.
The supply curve shifts to the right.
Output increases regardless of the market price and the supply curve shifts upward.
Output decreases and the market price also decrease.
Question # 3 of 15 ( Start time: 06:35:30 PM ) Total Marks: 1
Final goods are meant for:
Select correct option:
Direct use by the consumers
further processing
The term do not exist
None
Question # 4 of 15 ( Start time: 06:35:58 PM ) Total Marks: 1
Goods X and Y are complements while goods X and Z are substitutes. If the supply of good X increases:
Select correct option:
The demand for both Y and Z will increase
The demand for Y will increase while the demand for Z will decrease
The demand for Y will decrease while the demand for Z will increase
The demand for both Y and Z will decrease
Question # 5 of 15 ( Start time: 06:36:36 PM ) Total Marks: 1
According to the model of aggregate supply and aggregate demand, in the long run, an increase in the money supply should cause
Select correct option:
Prices to rise and output to rise.
Prices to fall and output to remain unchanged
Prices to fall and output to fall.
Prices to rise and output to remain unchanged
Question # 6 of 15 ( Start time: 06:37:19 PM ) Total Marks: 1
Marginal utility is best described as:
Select correct option:
The additional satisfaction gained by consumption of the last good
The per unit satisfaction of the good consumed
The total satisfaction gained from the total consumption of the good
The change in satisfaction from consuming one additional unit of the good
Question # 7 of 15 ( Start time: 06:37:44 PM ) Total Marks: 1
If firms in a competitive industry are experiencing losses in the short run, then:
Select correct option:
The firms will try to raise prices.
Some firms will choose to shut down.
The industry will cease to exist.
New firms will enter the industry.
Question # 8 of 15 ( Start time: 06:38:17 PM ) Total Marks: 1
Which of the following is not a stock variable?
Select correct option:
Government debt
The labor force
The amount of money held by the public
Inventory investment
Question # 9 of 15 ( Start time: 06:38:42 PM ) Total Marks: 1
An exchange rate that has an officially fixed value less than its fundamental value is called a(n) _______ exchange rate.
Select correct option:
Devalued.
Revalued.
Depreciated.
Undervalued.
Question # 10 of 15 ( Start time: 06:39:08 PM ) Total Marks: 1
Which of the following would cause the short run aggregate supply curve to shift to the left, but have no effect over the long run aggregate supply?
Select correct option:
The amount of factors of production (such as labor and capital) increase
The amount of factors of production (such as labor and capital) decrease
Prices of inputs (such as wages or oil prices) increase
Prices of inputs (such as wages or oil prices) decrease
Question # 11 of 15 ( Start time: 06:39:32 PM ) Total Marks: 1
Indifference curves that are convex to the origin reflect:
Select correct option:
An increasing marginal rate of substitution.
A decreasing marginal rate of substitution.
A constant marginal rate of substitution.
A marginal rate of substitution that first decreases, then increases.
Question # 12 of 15 ( Start time: 06:39:49 PM ) Total Marks: 1
The figure that results when goods imports are subtracted from goods exports is:
Select correct option:
The capital account balance.
The balance of trade.
Always greater than zero.
Always less than zero.
Question # 13 of 15 ( Start time: 06:40:12 PM ) Total Marks: 1
In the equation MV = PQ, according to the crude quantity theory of money:
Select correct option:
M has no effect on the price level.
V is the number of times each dollar is spent per year.
Q is the real price level.
P rises as V falls, other things constant.
Question # 14 of 15 ( Start time: 06:40:32 PM ) Total Marks: 1
Fiscal policy is the government program with respect to its:
Select correct option:
Steel Mill Privatization.
Unemployment reduction.
Expenditure and tax revenue.
Increase in unemployment.
Question # 15 of 15 ( Start time: 06:40:54 PM ) Total Marks: 1
In the classical model, given an initial aggregate equilibrium at full employment, the long run effect of an increase in government spending is;
Select correct option:
An increase in the price level
An upward shift of the aggregate demand curve
A constant level of output
All of the above
When the demand curve is downward sloping, marginal revenue is:
Select correct option:
Equal to price.
Equal to average cost.
Less than price.
More than price.
Question # 2 of 15 ( Start time: 06:34:43 PM ) Total Marks: 1
When an industry's raw material costs increase, other things remaining the same:
Select correct option:
The supply curve shifts to the left.
The supply curve shifts to the right.
Output increases regardless of the market price and the supply curve shifts upward.
Output decreases and the market price also decrease.
Question # 3 of 15 ( Start time: 06:35:30 PM ) Total Marks: 1
Final goods are meant for:
Select correct option:
Direct use by the consumers
further processing
The term do not exist
None
Question # 4 of 15 ( Start time: 06:35:58 PM ) Total Marks: 1
Goods X and Y are complements while goods X and Z are substitutes. If the supply of good X increases:
Select correct option:
The demand for both Y and Z will increase
The demand for Y will increase while the demand for Z will decrease
The demand for Y will decrease while the demand for Z will increase
The demand for both Y and Z will decrease
Question # 5 of 15 ( Start time: 06:36:36 PM ) Total Marks: 1
According to the model of aggregate supply and aggregate demand, in the long run, an increase in the money supply should cause
Select correct option:
Prices to rise and output to rise.
Prices to fall and output to remain unchanged
Prices to fall and output to fall.
Prices to rise and output to remain unchanged
Question # 6 of 15 ( Start time: 06:37:19 PM ) Total Marks: 1
Marginal utility is best described as:
Select correct option:
The additional satisfaction gained by consumption of the last good
The per unit satisfaction of the good consumed
The total satisfaction gained from the total consumption of the good
The change in satisfaction from consuming one additional unit of the good
Question # 7 of 15 ( Start time: 06:37:44 PM ) Total Marks: 1
If firms in a competitive industry are experiencing losses in the short run, then:
Select correct option:
The firms will try to raise prices.
Some firms will choose to shut down.
The industry will cease to exist.
New firms will enter the industry.
Question # 8 of 15 ( Start time: 06:38:17 PM ) Total Marks: 1
Which of the following is not a stock variable?
Select correct option:
Government debt
The labor force
The amount of money held by the public
Inventory investment
Question # 9 of 15 ( Start time: 06:38:42 PM ) Total Marks: 1
An exchange rate that has an officially fixed value less than its fundamental value is called a(n) _______ exchange rate.
Select correct option:
Devalued.
Revalued.
Depreciated.
Undervalued.
Question # 10 of 15 ( Start time: 06:39:08 PM ) Total Marks: 1
Which of the following would cause the short run aggregate supply curve to shift to the left, but have no effect over the long run aggregate supply?
Select correct option:
The amount of factors of production (such as labor and capital) increase
The amount of factors of production (such as labor and capital) decrease
Prices of inputs (such as wages or oil prices) increase
Prices of inputs (such as wages or oil prices) decrease
Question # 11 of 15 ( Start time: 06:39:32 PM ) Total Marks: 1
Indifference curves that are convex to the origin reflect:
Select correct option:
An increasing marginal rate of substitution.
A decreasing marginal rate of substitution.
A constant marginal rate of substitution.
A marginal rate of substitution that first decreases, then increases.
Question # 12 of 15 ( Start time: 06:39:49 PM ) Total Marks: 1
The figure that results when goods imports are subtracted from goods exports is:
Select correct option:
The capital account balance.
The balance of trade.
Always greater than zero.
Always less than zero.
Question # 13 of 15 ( Start time: 06:40:12 PM ) Total Marks: 1
In the equation MV = PQ, according to the crude quantity theory of money:
Select correct option:
M has no effect on the price level.
V is the number of times each dollar is spent per year.
Q is the real price level.
P rises as V falls, other things constant.
Question # 14 of 15 ( Start time: 06:40:32 PM ) Total Marks: 1
Fiscal policy is the government program with respect to its:
Select correct option:
Steel Mill Privatization.
Unemployment reduction.
Expenditure and tax revenue.
Increase in unemployment.
Question # 15 of 15 ( Start time: 06:40:54 PM ) Total Marks: 1
In the classical model, given an initial aggregate equilibrium at full employment, the long run effect of an increase in government spending is;
Select correct option:
An increase in the price level
An upward shift of the aggregate demand curve
A constant level of output
All of the above
ECO401 – Economics
Online Quiz # 5
February 15, 2010
Total questions: 15
Question # 1 of 15 ( Start time: 09:37:50 PM ) Total Marks: 1
Economic activity moves from a trough into a period of _______until it reaches a _____ and then into a period of _______.
Select correct option:
Expansion; trough; recession.
Recession; trough; expansion.
Expansion; peak; recession.
Recession; peak; expansion.
Question # 2 of 15 ( Start time: 09:39:03 PM ) Total Marks: 1
If a Japanese radio priced at 2,000 yen can be purchased for $10, the exchange rate is:
Select correct option:
200 yen per dollar.
20 yen per dollar.
20 dollars per yen.
None of the given options.
Question # 3 of 15 ( Start time: 09:39:58 PM ) Total Marks: 1
A tax on the accounting profits of corporations is known as:
Select correct option:
Sales tax.
Excise tax.
Corporate income tax.
Personal income tax.
Question # 4 of 15 ( Start time: 09:41:10 PM ) Total Marks: 1
Which of the following statements describes increasing returns to scale:
Select correct option:
Doubling the inputs used leads to double the output.
Increasing the inputs by 50% leads to a 25% increase in output.
Increasing inputs by 1/4 leads to an increase in output of 1/3.
None of the given options.
Question # 5 of 15 ( Start time: 09:41:54 PM ) Total Marks: 1
An individual with a constant marginal utility of income will be:
Select correct option:
Risk averse.
Risk neutral.
Risk loving.
Insufficient information for a decision.
Question # 6 of 15 ( Start time: 09:43:09 PM ) Total Marks: 1
A ***** of modern economists who believe that markets clear very rapidly and that expanding the money supply will always increase prices rather than employment are the:
Select correct option:
Keynesians
Monetarists
New Classical school
Post-Keynesians
Question # 7 of 15 ( Start time: 09:44:29 PM ) Total Marks: 1
Real GDP:
Select correct option:
Is nominal GDP adjusted for changes in the price level.
Is also called nominal GDP.
Measures GDP minus depreciation of capital.
Will always change when prices change.
Question # 8 of 15 ( Start time: 09:44:58 PM ) Total Marks: 1
In the equation MV = PQ, according to the crude quantity theory of money:
Select correct option:
M has no effect on the price level.
V is the number of times each dollar is spent per year.
Q is the real price level.
P rises as V falls, other things constant.
Question # 9 of 15 ( Start time: 09:46:23 PM ) Total Marks: 1
Which one of the following is most likely to lead to an increase in aggregate demand? An increase in:
Select correct option:
Government tax revenues
Household savings
Business capital investment
Demand for imports
Question # 10 of 15 ( Start time: 09:46:53 PM ) Total Marks: 1
When the demand curve is downward sloping, marginal revenue is:
Select correct option:
Equal to price.
Equal to average cost.
Less than price.
More than price.
Question # 11 of 15 ( Start time: 09:47:59 PM ) Total Marks: 1
Which of the following is not an assumption of ordinal utility analysis?
Select correct option:
Consumers are consistent in their preference.
Consumers can measure the total utility received from any given basket of good.
Consumers are non-satiated with respect to the goods they confront.
All are necessary.
Question # 12 of 15 ( Start time: 09:49:22 PM ) Total Marks: 1
To make the equation of exchange into the quantity theory of money:
Select correct option:
V and Q are assumed to be constant.
The money supply is assumed to be produced by the banking system and not exclusively in currency.
The quantity of money is assumed to determine the amount of Real GDP.
M and P are considered constant.
Question # 13 of 15 ( Start time: 09:50:44 PM ) Total Marks: 1
The marginal rate of substitution is equal to the:
Select correct option:
Magnitude of the slope of the indifference curve
Relative price
Marginal cost of each good
Slope of the budget line
Question # 14 of 15 ( Start time: 09:51:07 PM ) Total Marks: 1
The investment demand curve shows the relationship between the levels of:
Select correct option:
Investment and consumption.
Consumption and interest rate.
Investment and interest rate.
Investment and saving.
Question # 15 of 15 ( Start time: 09:51:46 PM ) Total Marks: 1
According to economy is always at full employment level. Economy would automatically find the new equilibrium in the short run.
Select correct option:
True
False
Online Quiz # 5
February 15, 2010
Total questions: 15
Question # 1 of 15 ( Start time: 09:37:50 PM ) Total Marks: 1
Economic activity moves from a trough into a period of _______until it reaches a _____ and then into a period of _______.
Select correct option:
Expansion; trough; recession.
Recession; trough; expansion.
Expansion; peak; recession.
Recession; peak; expansion.
Question # 2 of 15 ( Start time: 09:39:03 PM ) Total Marks: 1
If a Japanese radio priced at 2,000 yen can be purchased for $10, the exchange rate is:
Select correct option:
200 yen per dollar.
20 yen per dollar.
20 dollars per yen.
None of the given options.
Question # 3 of 15 ( Start time: 09:39:58 PM ) Total Marks: 1
A tax on the accounting profits of corporations is known as:
Select correct option:
Sales tax.
Excise tax.
Corporate income tax.
Personal income tax.
Question # 4 of 15 ( Start time: 09:41:10 PM ) Total Marks: 1
Which of the following statements describes increasing returns to scale:
Select correct option:
Doubling the inputs used leads to double the output.
Increasing the inputs by 50% leads to a 25% increase in output.
Increasing inputs by 1/4 leads to an increase in output of 1/3.
None of the given options.
Question # 5 of 15 ( Start time: 09:41:54 PM ) Total Marks: 1
An individual with a constant marginal utility of income will be:
Select correct option:
Risk averse.
Risk neutral.
Risk loving.
Insufficient information for a decision.
Question # 6 of 15 ( Start time: 09:43:09 PM ) Total Marks: 1
A ***** of modern economists who believe that markets clear very rapidly and that expanding the money supply will always increase prices rather than employment are the:
Select correct option:
Keynesians
Monetarists
New Classical school
Post-Keynesians
Question # 7 of 15 ( Start time: 09:44:29 PM ) Total Marks: 1
Real GDP:
Select correct option:
Is nominal GDP adjusted for changes in the price level.
Is also called nominal GDP.
Measures GDP minus depreciation of capital.
Will always change when prices change.
Question # 8 of 15 ( Start time: 09:44:58 PM ) Total Marks: 1
In the equation MV = PQ, according to the crude quantity theory of money:
Select correct option:
M has no effect on the price level.
V is the number of times each dollar is spent per year.
Q is the real price level.
P rises as V falls, other things constant.
Question # 9 of 15 ( Start time: 09:46:23 PM ) Total Marks: 1
Which one of the following is most likely to lead to an increase in aggregate demand? An increase in:
Select correct option:
Government tax revenues
Household savings
Business capital investment
Demand for imports
Question # 10 of 15 ( Start time: 09:46:53 PM ) Total Marks: 1
When the demand curve is downward sloping, marginal revenue is:
Select correct option:
Equal to price.
Equal to average cost.
Less than price.
More than price.
Question # 11 of 15 ( Start time: 09:47:59 PM ) Total Marks: 1
Which of the following is not an assumption of ordinal utility analysis?
Select correct option:
Consumers are consistent in their preference.
Consumers can measure the total utility received from any given basket of good.
Consumers are non-satiated with respect to the goods they confront.
All are necessary.
Question # 12 of 15 ( Start time: 09:49:22 PM ) Total Marks: 1
To make the equation of exchange into the quantity theory of money:
Select correct option:
V and Q are assumed to be constant.
The money supply is assumed to be produced by the banking system and not exclusively in currency.
The quantity of money is assumed to determine the amount of Real GDP.
M and P are considered constant.
Question # 13 of 15 ( Start time: 09:50:44 PM ) Total Marks: 1
The marginal rate of substitution is equal to the:
Select correct option:
Magnitude of the slope of the indifference curve
Relative price
Marginal cost of each good
Slope of the budget line
Question # 14 of 15 ( Start time: 09:51:07 PM ) Total Marks: 1
The investment demand curve shows the relationship between the levels of:
Select correct option:
Investment and consumption.
Consumption and interest rate.
Investment and interest rate.
Investment and saving.
Question # 15 of 15 ( Start time: 09:51:46 PM ) Total Marks: 1
According to economy is always at full employment level. Economy would automatically find the new equilibrium in the short run.
Select correct option:
True
False
ECO401 – Economics
Online Quiz # 5
February 16, 2010
Total questions: 15
Question # 1 of 15 ( Start time: 06:43:49 PM ) Total Marks: 1
Which of the following statements describes increasing returns to scale:
Select correct option:
Doubling the inputs used leads to double the output.
Increasing the inputs by 50% leads to a 25% increase in output.
Increasing inputs by 1/4 leads to an increase in output of 1/3.
None of the given options.
Question # 2 of 15 ( Start time: 06:44:19 PM ) Total Marks: 1
Many economists and government analysts have investigated the effect of a minimum wage on labour markets. The general conclusion reached by the investigators is that:
Select correct option:
The overall effect of the minimum wage is an increase in the unemployment level.
Teenagers gain most of the beneficial employment effects of the minimum wage.
All industries are equally affected by the minimum wage laws.
Over a period of time, the minimum wage laws will increase employment in the economy.
Question # 3 of 15 ( Start time: 06:45:37 PM ) Total Marks: 1
An economist will define the exchange rate between two currencies as the:
Select correct option:
Amount of one currency that must be paid in order to obtain one unit of another currency.
Difference between total exports and total imports within a country.
Price at which the sales and purchases of foreign goods takes place.
Ratio of import prices to export prices for a particular country.
Question # 4 of 15 ( Start time: 06:47:03 PM ) Total Marks: 1
The kinked demand curve model is based on the assumption that each firm:
Select correct option:
Considers its rival's output to be fixed
Considers its rival's price to be fixed
Believes rivals will match all price changes
None of the given options
Question # 5 of 15 ( Start time: 06:48:26 PM ) Total Marks: 1
Which of the following is a flow variable?
Select correct option:
The value of the house in which you live
The balance in your savings account
Your monthly consumption of hamburgers
The number of hamburgers in your refrigerator at the beginning of the month
Question # 6 of 15 ( Start time: 06:49:40 PM ) Total Marks: 1
Indifference curves that are convex to the origin reflect:
Select correct option:
An increasing marginal rate of substitution.
A decreasing marginal rate of substitution.
A constant marginal rate of substitution.
A marginal rate of substitution that first decreases, then increases.
Question # 7 of 15 ( Start time: 06:50:39 PM ) Total Marks: 1
Which of the following is the Fisher Equation of Exchange?
Select correct option:
MT=PV.
VT=PM.
MV=PQ.
MY=VP.
Question # 8 of 15 ( Start time: 06:52:02 PM ) Total Marks: 1
Which of the following is NOT an account in the balance of payments?
Select correct option:
Capital account.
Financial account.
Current account.
Future account.
Question # 9 of 15 ( Start time: 06:52:49 PM ) Total Marks: 1
The economics news on the television reports that the dollar has strengthened relative to the Japanese yen. This means that:
Select correct option:
The dollar can now purchase more yen.
The US trade balance with the Japanese economy has improved.
The yen can now purchase more dollars.
The dollar has depreciated relative to the yen.
Question # 10 of 15 ( Start time: 06:54:00 PM ) Total Marks: 1
The cross elasticity of demand of complements goods is:
Select correct option:
Less than 0.
Equal to 0.
Greater than 0.
Between 0 and 1.
Question # 11 of 15 ( Start time: 06:55:25 PM ) Total Marks: 1
A government wishing to reduce a deficit on the current account of their balance of payments through the use of fiscal policy would be most likely to:
Select correct option:
Raise direct taxation.
Introduce an import quota.
Reduce the rate of value added tax on all goods and services.
Raise interest rates.
Question # 12 of 15 ( Start time: 06:56:47 PM ) Total Marks: 1
Under New Classical macroeconomics monetary policy:
Select correct option:
Affects the level of equilibrium output
Affects the composition of equilibrium output
Affects both the level and composition of equilibrium output
None of the given options
Question # 13 of 15 ( Start time: 06:58:13 PM ) Total Marks: 1
The relationship between consumer spending and income is known as the:
Select correct option:
45-degree line.
Consumption function.
Investment function.
Consumer price index.
Question # 14 of 15 ( Start time: 06:59:14 PM ) Total Marks: 1
In the Keynesian cross model, the 45-degree line has a slope of:
Select correct option:
1.
0.
45.
Infinity.
Question # 15 of 15 ( Start time: 07:00:19 PM ) Total Marks: 1
If disposable income increases from $5 trillion to $6 trillion and, as a result, consumption expenditure increases from $7 trillion to $7.8 trillion, the Marginal Propensity to Consume is:
Select correct option:
1.0.
0.8.
5/7 = 0.71.
6/7.8 = 0.77.
Online Quiz # 5
February 16, 2010
Total questions: 15
Question # 1 of 15 ( Start time: 06:43:49 PM ) Total Marks: 1
Which of the following statements describes increasing returns to scale:
Select correct option:
Doubling the inputs used leads to double the output.
Increasing the inputs by 50% leads to a 25% increase in output.
Increasing inputs by 1/4 leads to an increase in output of 1/3.
None of the given options.
Question # 2 of 15 ( Start time: 06:44:19 PM ) Total Marks: 1
Many economists and government analysts have investigated the effect of a minimum wage on labour markets. The general conclusion reached by the investigators is that:
Select correct option:
The overall effect of the minimum wage is an increase in the unemployment level.
Teenagers gain most of the beneficial employment effects of the minimum wage.
All industries are equally affected by the minimum wage laws.
Over a period of time, the minimum wage laws will increase employment in the economy.
Question # 3 of 15 ( Start time: 06:45:37 PM ) Total Marks: 1
An economist will define the exchange rate between two currencies as the:
Select correct option:
Amount of one currency that must be paid in order to obtain one unit of another currency.
Difference between total exports and total imports within a country.
Price at which the sales and purchases of foreign goods takes place.
Ratio of import prices to export prices for a particular country.
Question # 4 of 15 ( Start time: 06:47:03 PM ) Total Marks: 1
The kinked demand curve model is based on the assumption that each firm:
Select correct option:
Considers its rival's output to be fixed
Considers its rival's price to be fixed
Believes rivals will match all price changes
None of the given options
Question # 5 of 15 ( Start time: 06:48:26 PM ) Total Marks: 1
Which of the following is a flow variable?
Select correct option:
The value of the house in which you live
The balance in your savings account
Your monthly consumption of hamburgers
The number of hamburgers in your refrigerator at the beginning of the month
Question # 6 of 15 ( Start time: 06:49:40 PM ) Total Marks: 1
Indifference curves that are convex to the origin reflect:
Select correct option:
An increasing marginal rate of substitution.
A decreasing marginal rate of substitution.
A constant marginal rate of substitution.
A marginal rate of substitution that first decreases, then increases.
Question # 7 of 15 ( Start time: 06:50:39 PM ) Total Marks: 1
Which of the following is the Fisher Equation of Exchange?
Select correct option:
MT=PV.
VT=PM.
MV=PQ.
MY=VP.
Question # 8 of 15 ( Start time: 06:52:02 PM ) Total Marks: 1
Which of the following is NOT an account in the balance of payments?
Select correct option:
Capital account.
Financial account.
Current account.
Future account.
Question # 9 of 15 ( Start time: 06:52:49 PM ) Total Marks: 1
The economics news on the television reports that the dollar has strengthened relative to the Japanese yen. This means that:
Select correct option:
The dollar can now purchase more yen.
The US trade balance with the Japanese economy has improved.
The yen can now purchase more dollars.
The dollar has depreciated relative to the yen.
Question # 10 of 15 ( Start time: 06:54:00 PM ) Total Marks: 1
The cross elasticity of demand of complements goods is:
Select correct option:
Less than 0.
Equal to 0.
Greater than 0.
Between 0 and 1.
Question # 11 of 15 ( Start time: 06:55:25 PM ) Total Marks: 1
A government wishing to reduce a deficit on the current account of their balance of payments through the use of fiscal policy would be most likely to:
Select correct option:
Raise direct taxation.
Introduce an import quota.
Reduce the rate of value added tax on all goods and services.
Raise interest rates.
Question # 12 of 15 ( Start time: 06:56:47 PM ) Total Marks: 1
Under New Classical macroeconomics monetary policy:
Select correct option:
Affects the level of equilibrium output
Affects the composition of equilibrium output
Affects both the level and composition of equilibrium output
None of the given options
Question # 13 of 15 ( Start time: 06:58:13 PM ) Total Marks: 1
The relationship between consumer spending and income is known as the:
Select correct option:
45-degree line.
Consumption function.
Investment function.
Consumer price index.
Question # 14 of 15 ( Start time: 06:59:14 PM ) Total Marks: 1
In the Keynesian cross model, the 45-degree line has a slope of:
Select correct option:
1.
0.
45.
Infinity.
Question # 15 of 15 ( Start time: 07:00:19 PM ) Total Marks: 1
If disposable income increases from $5 trillion to $6 trillion and, as a result, consumption expenditure increases from $7 trillion to $7.8 trillion, the Marginal Propensity to Consume is:
Select correct option:
1.0.
0.8.
5/7 = 0.71.
6/7.8 = 0.77.
ECO401 – Economics
Online Quiz # 5
February 15, 2010
Total questions: 15
Question # 1 of 15 ( Start time: 09:05:50 PM ) Total Marks: 1
In a free-market economy the allocation of resources is determined by:
Select correct option:
Votes taken by consumers
A central planning authority
By consumer preferences
The level of profits of firms
Question # 2 of 15 ( Start time: 09:06:10 PM ) Total Marks: 1
The point at which AC intersects MC is where:
Select correct option:
AC is decreasing.
MC is at its minimum.
AC is at its minimum.
AC is at its maximum.
(not 100% sure, but according to me option # 3 is correct)
Question # 3 of 15 ( Start time: 09:07:32 PM ) Total Marks: 1
More output could be produced with available resources if:
Select correct option:
Resources are allocated efficiently
Resources are imperfectly shiftable among alternative uses
Prices are reduced
The economy is operating at a point inside the production possibilities curve.
Question # 4 of 15 ( Start time: 09:08:28 PM ) Total Marks: 1
Final goods are meant for:
Select correct option:
Direct use by the consumers
further processing
The term do not exist
None
Question # 5 of 15 ( Start time: 09:08:42 PM ) Total Marks: 1
The marginal rate of substitution is equal to the:
Select correct option:
Magnitude of the slope of the indifference curve
Relative price
Marginal cost of each good
Slope of the budget line
Question # 7 of 15 ( Start time: 09:10:49 PM ) Total Marks: 1
Monopolistically competitive firms have monopoly power because they:
Select correct option:
Face downward sloping demand curves.
Are great in number.
Have freedom of entry.
Are free to advertise.
Question # 8 of 15 ( Start time: 09:11:44 PM ) Total Marks: 1
An exchange rate that varies according to the supply and demand for the currency in the foreign exchange market is called a(n) _________ exchange rate.
Select correct option:
Overvalued.
Undervalued.
Fixed.
Flexible.
Question # 9 of 15 ( Start time: 09:13:01 PM ) Total Marks: 1
The figure that results when goods imports are subtracted from goods exports is:
Select correct option:
The capital account balance.
The balance of trade.
Always greater than zero.
Always less than zero.
Question # 10 of 15 ( Start time: 09:13:53 PM ) Total Marks: 1
In the United States, the M1 money supply consists of:
Select correct option:
Paper currency and coins.
Paper currency, coins and check- writing deposits.
Paper currency, coins, check- writing deposits and savings deposits.
Paper currency, coins, check- writing deposits, savings deposits and certificates of deposits.
Question # 11 of 15 ( Start time: 09:15:18 PM ) Total Marks: 1
When the price of petrol rises 10%, the quantity of petrol purchased falls by 8%. The demand for petrol is:
Select correct option:
Perfectly elastic
Unit elastic
Elastic
Inelastic
Question # 12 of 15 ( Start time: 09:16:29 PM ) Total Marks: 1
A new technology which reduces costs for firms’:
Select correct option:
Shifts the supply curve to the right
Shifts the supply curve to the left
Reduces the equilibrium quantity
Raises the equilibrium price
Question # 13 of 15 ( Start time: 09:16:46 PM ) Total Marks: 1
Suppose that a farmer grows wheat and sells it to a baker for $1, the baker makes bread and sells it to a store for $2, and the store sells it to the customer for $3. This transaction increases GDP by:
Select correct option:
$1.
$2.
$3.
$6.
Question # 14 of 15 ( Start time: 09:17:58 PM ) Total Marks: 1
The concept of a risk premium applies to a person that is:
Select correct option:
Risk averse
Risk neutral
Risk loving
All of the given options
Question # 15 of 15 ( Start time: 09:18:57 PM ) Total Marks: 1
''Capital widening'' means:
Select correct option:
More capital and more labour, but with the same amount of capital per unit of labour.
More capital per unit of labour.
Increasing the usage of existing capital.
Importing capital from the developed world.
Online Quiz # 5
February 15, 2010
Total questions: 15
Question # 1 of 15 ( Start time: 09:05:50 PM ) Total Marks: 1
In a free-market economy the allocation of resources is determined by:
Select correct option:
Votes taken by consumers
A central planning authority
By consumer preferences
The level of profits of firms
Question # 2 of 15 ( Start time: 09:06:10 PM ) Total Marks: 1
The point at which AC intersects MC is where:
Select correct option:
AC is decreasing.
MC is at its minimum.
AC is at its minimum.
AC is at its maximum.
(not 100% sure, but according to me option # 3 is correct)
Question # 3 of 15 ( Start time: 09:07:32 PM ) Total Marks: 1
More output could be produced with available resources if:
Select correct option:
Resources are allocated efficiently
Resources are imperfectly shiftable among alternative uses
Prices are reduced
The economy is operating at a point inside the production possibilities curve.
Question # 4 of 15 ( Start time: 09:08:28 PM ) Total Marks: 1
Final goods are meant for:
Select correct option:
Direct use by the consumers
further processing
The term do not exist
None
Question # 5 of 15 ( Start time: 09:08:42 PM ) Total Marks: 1
The marginal rate of substitution is equal to the:
Select correct option:
Magnitude of the slope of the indifference curve
Relative price
Marginal cost of each good
Slope of the budget line
Question # 7 of 15 ( Start time: 09:10:49 PM ) Total Marks: 1
Monopolistically competitive firms have monopoly power because they:
Select correct option:
Face downward sloping demand curves.
Are great in number.
Have freedom of entry.
Are free to advertise.
Question # 8 of 15 ( Start time: 09:11:44 PM ) Total Marks: 1
An exchange rate that varies according to the supply and demand for the currency in the foreign exchange market is called a(n) _________ exchange rate.
Select correct option:
Overvalued.
Undervalued.
Fixed.
Flexible.
Question # 9 of 15 ( Start time: 09:13:01 PM ) Total Marks: 1
The figure that results when goods imports are subtracted from goods exports is:
Select correct option:
The capital account balance.
The balance of trade.
Always greater than zero.
Always less than zero.
Question # 10 of 15 ( Start time: 09:13:53 PM ) Total Marks: 1
In the United States, the M1 money supply consists of:
Select correct option:
Paper currency and coins.
Paper currency, coins and check- writing deposits.
Paper currency, coins, check- writing deposits and savings deposits.
Paper currency, coins, check- writing deposits, savings deposits and certificates of deposits.
Question # 11 of 15 ( Start time: 09:15:18 PM ) Total Marks: 1
When the price of petrol rises 10%, the quantity of petrol purchased falls by 8%. The demand for petrol is:
Select correct option:
Perfectly elastic
Unit elastic
Elastic
Inelastic
Question # 12 of 15 ( Start time: 09:16:29 PM ) Total Marks: 1
A new technology which reduces costs for firms’:
Select correct option:
Shifts the supply curve to the right
Shifts the supply curve to the left
Reduces the equilibrium quantity
Raises the equilibrium price
Question # 13 of 15 ( Start time: 09:16:46 PM ) Total Marks: 1
Suppose that a farmer grows wheat and sells it to a baker for $1, the baker makes bread and sells it to a store for $2, and the store sells it to the customer for $3. This transaction increases GDP by:
Select correct option:
$1.
$2.
$3.
$6.
Question # 14 of 15 ( Start time: 09:17:58 PM ) Total Marks: 1
The concept of a risk premium applies to a person that is:
Select correct option:
Risk averse
Risk neutral
Risk loving
All of the given options
Question # 15 of 15 ( Start time: 09:18:57 PM ) Total Marks: 1
''Capital widening'' means:
Select correct option:
More capital and more labour, but with the same amount of capital per unit of labour.
More capital per unit of labour.
Increasing the usage of existing capital.
Importing capital from the developed world.
