Eco401 Online Quizzes
Thursday, January 20, 2011 Posted In Eco Edit This
Question # 1 of 20 ( Start time: 09:44:10 PM ) Total Marks: 1
The numerical measurement of a consumer’s preference is called:
Select correct option:
Satisfaction.
Use.
Pleasure.
Utility.
Question # 2 of 20 ( Start time: 09:44:29 PM ) Total Marks: 1
The short run, as economists use the phrase, is characterised by:
Select correct option:
All inputs being variable.
At least one fixed factor of production and firms neither leaving nor entering the industry.
No variable inputs - that is, all of the factors of production are fixed.
A period where the law of diminishing returns does not hold.
Question # 3 of 20 ( Start time: 09:46:52 PM ) Total Marks: 1
In pure capitalism, freedom of enterprise means that:
Select correct option:
Businesses are free to produce products that consumers want.
Consumers are free to buy goods and services that they want.
Resources are distributed freely to businesses that want them.
Government is free to direct the actions of businesses.
Question # 4 of 20 ( Start time: 09:47:08 PM ) Total Marks: 1
Assume that the government sets a ceiling on the interest rate that banks charge on loans. If the ceiling is set below the market equilibrium interest rate, the result will be:
Select correct option:
A surplus of credit.
A shortage of credit.
Greater profits for banks issuing credit.
A perfectly inelastic supply of credit in the market place.
Question # 5 of 20 ( Start time: 09:47:30 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 # 6 of 20 ( Start time: 09:47:52 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.
Government debt.
None of the given.
Question # 7 of 20 ( Start time: 09:48:57 PM ) Total Marks: 1
Other things being equal, expected income can be used as a direct measure of well-being:
Select correct option:
No matter what a person's preference to risk.
If and only if individuals are not risk-loving.
If and only if individuals are risk averse.
If and only if individuals are risk neutral.
Question # 8 of 20 ( Start time: 09:49:29 PM ) Total Marks: 1
Economists who are concerned about the behavior of individual households, firms and industries are studying:
Select correct option:
Microeconomics
Macroeconomics
Positive economics
Normative economics
Question # 9 of 20 ( Start time: 09:49:48 PM ) 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 # 10 of 20 ( Start time: 09:50:08 PM ) Total Marks: 1
The market structure in which strategic considerations are most important is:
Select correct option:
Monopolistic competition.
Oligopoly.
Pure competition.
Pure monopoly.
Question # 11 of 20 ( Start time: 09:50:38 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 # 12 of 20 ( Start time: 09:50:54 PM ) Total Marks: 1
Why the economy does not self correct quickly, one explanation for this is:
Select correct option:
With less consumption and more savings the interest rate will drop.
In the short run workers are fully employed and cannot produce enough to get to long run equilibrium.
Wages and prices are flexible
Wages and prices are sticky.
Question # 13 of 20 ( Start time: 09:52:22 PM ) Total Marks: 1
Our economy is characterized by:
Select correct option:
Unlimited wants and needs.
Unlimited material resources.
No energy resources.
Abundant productive labor.
Question # 14 of 20 ( Start time: 09:52:40 PM ) Total Marks: 1
Which of the following is TRUE about the production function?
Select correct option:
It relates inputs with output.
It generates a curve that is upward sloping.
It shows diminishing marginal product of an input, since it gets flatter as output rises.
All of the given options are true.
Question # 15 of 20 ( Start time: 09:53:07 PM ) Total Marks: 1
If the quantity supplied of mangoes exceeds the quantity demanded of mangoes:
Select correct option:
There is a shortage of mangoes.
Market forces will cause the price to fall.
Market forces will cause the price to rise.
The market is in equilibrium.
Question # 16 of 20 ( Start time: 09:53:23 PM ) 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 Scedule.
Demand Scedule.
Quantity supplied Scedule.
Quantity demanded Scedule.
Question # 17 of 20 ( Start time: 09:54:04 PM ) Total Marks: 1
Which of the following is true about the point on a nation's production-possibilities curve?
Select correct option:
It shows an undesirable combination of goods and services.
It shows the combinations of production that are unattainable, given current technology and resources.
It shows the level of production that will cause both unemployment and inflation.
It shows that resources are fully employed in producing a particular combination of goods and services.
Question # 18 of 20 ( Start time: 09:54:23 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 # 19 of 20 ( Start time: 09:54:51 PM ) Total Marks: 1
Which of the following is a benefit of real economic growth to a society?
Select correct option:
Everyone enjoys a greater nominal income.
The standard of living increases.
The burden of scarcity increases.
The society is less able to satisfy new wants.
Question # 20 of 20 ( Start time: 09:55:23 PM ) Total Marks: 1
You observe that the price of houses and the number of houses purchased both rise over the course of the year. You conclude that:
Select correct option:
The demand for houses has increased.
The demand curve for houses must be upward-sloping.
The supply of houses has increased.
Housing construction costs must be decreasing.
....................
Question # 1 of 20 ( Start time: 10:06:11 PM ) Total Marks: 1
Intermediate goods are meant for:
Select correct option:
Direct use by the consumers
further processing
The term do not exist
None
Question # 2 of 20 ( Start time: 10:06:34 PM ) Total Marks: 1
The law of diminishing marginal utility:
Select correct option:
Refers to the decrease in total satisfaction as more units of the good are consumed.
Refers to the fall in additional satisfaction created by consumption of more and more.
Refers to the units of a good.
Refers to the idea that total utility is negative.
Question # 3 of 20 ( Start time: 10:06:57 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 # 4 of 20 ( Start time: 10:07:13 PM ) Total Marks: 1
Internet products are also known as:
Select correct option:
Expensive products.
Information products.
Inferior products.
Superior products.
Question # 5 of 20 ( Start time: 10:08:37 PM ) Total Marks: 1
If Nominal GDP is divided by the GDP deflator, it is called:
Select correct option:
Real Gross Domestic Product (GDP)
Gross National product (GNP)
Net national Product (NNP)
None of the given.
Question # 6 of 20 ( Start time: 10:09:38 PM ) 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 # 7 of 20 ( Start time: 10:10:08 PM ) Total Marks: 1
The price elasticity of supply shows us:
Select correct option:
How steep the supply curve is.
How fast supply responds to price.
How much supply shifts when income changes.
How much quantity supplied responds to price changes.
Question # 8 of 20 ( Start time: 10:10:32 PM ) Total Marks: 1
The effect of a change in income on the quantity of the good consumed is called the:
Select correct option:
Income effect.
Budget effect.
Substitution effect.
Real income effect.
Question # 9 of 20 ( Start time: 10:10:45 PM ) Total Marks: 1
When drawing demand and supply curves, economists are assuming that the primary influence on production and purchasing decisions is:
Select correct option:
Price.
Cost of production.
The overall state of the economy.
Consumer incomes.
Question # 10 of 20 ( Start time: 10:10:58 PM ) Total Marks: 1
According the law of diminishing returns:
Select correct option:
The marginal product falls as more units of a variable factor are added to a fixed factor.
Marginal utility falls as more units of a product are consumed.
The total product falls as more units of a variable factor are added to a fixed factor.
The marginal product increases as more units of a variable factor are added to a fixed factor.
Question # 11 of 20 ( Start time: 10:11:14 PM ) Total Marks: 1
Suppose if investment rises by Rs 100 billion at each price level. If the value of the multiplier is 4, what is the amount of change in real GDP demanded at each price level?
Select correct option:
25
50
400
1000
Question # 12 of 20 ( Start time: 10:12:38 PM ) Total Marks: 1
If Competitive markets do not achieve equitable outcomes, then it is called:
Select correct option:
Imperfect market structure.
Market failure.
Not rational consumers.
None of the given options.
Question # 13 of 20 ( Start time: 10:13:54 PM ) Total Marks: 1
Total income minus net taxes is called:
Select correct option:
Disposable income
Personal income
Individual income
Per capita income
Question # 14 of 20 ( Start time: 10:14:14 PM ) Total Marks: 1
When oligopolists collude, they are able to:
Select correct option:
Raise price, but not restrict output
Raise price and restrict output, but not attain the monopoly profit
Raise price and restrict output, and therefore attain the monopoly profit
Restrict output, but not raise price
Question # 15 of 20 ( Start time: 10:14:44 PM ) Total Marks: 1
The most important factor in determining the long-run profit potential in monopolistic competition is:
Select correct option:
Free entry and exit.
The elasticity of the market demand curve.
The elasticity of the firm's demand curve.
The reaction of rival firms to a change in price.
Question # 16 of 20 ( Start time: 10:14:57 PM ) Total Marks: 1
Which of the following is NOT regarded as a source of inefficiency in monopolistic competition?
Select correct option:
Product diversity.
Excess capacity.
The fact that price exceeds marginal cost.
The fact that long-run average cost is not minimized.
Question # 17 of 20 ( Start time: 10:15:14 PM ) Total Marks: 1
The level of aggregate demand will decrease if the level of:
Select correct option:
Consumption spending increases
Imports decreases
Investment spending decreases
Government spending increases
Question # 18 of 20 ( Start time: 10:15:28 PM ) Total Marks: 1
An exchange rate system in which central banks are always ready to buy and sell their currencies at predetermined prices is called:
Select correct option:
A dirty floating exchange rate system.
A flexible exchange rate system.
A managed exchange rate system .
A fixed exchange rate system.
Question # 19 of 20 ( Start time: 10:15:43 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 # 20 of 20 ( Start time: 10:16:11 PM ) Total Marks: 1
Which of the following does NOT refer to macroeconomics?
Select correct option:
The study of the aggregate level of economic activity.
The study of the economic behavior of individual decision-making units such as consumers, resource owners, and business firms.
The study of the cause of unemployment.
The study of the cause of inflation.
..............
The numerical measurement of a consumer’s preference is called:
Select correct option:
Satisfaction.
Use.
Pleasure.
Utility.
Question # 2 of 20 ( Start time: 09:44:29 PM ) Total Marks: 1
The short run, as economists use the phrase, is characterised by:
Select correct option:
All inputs being variable.
At least one fixed factor of production and firms neither leaving nor entering the industry.
No variable inputs - that is, all of the factors of production are fixed.
A period where the law of diminishing returns does not hold.
Question # 3 of 20 ( Start time: 09:46:52 PM ) Total Marks: 1
In pure capitalism, freedom of enterprise means that:
Select correct option:
Businesses are free to produce products that consumers want.
Consumers are free to buy goods and services that they want.
Resources are distributed freely to businesses that want them.
Government is free to direct the actions of businesses.
Question # 4 of 20 ( Start time: 09:47:08 PM ) Total Marks: 1
Assume that the government sets a ceiling on the interest rate that banks charge on loans. If the ceiling is set below the market equilibrium interest rate, the result will be:
Select correct option:
A surplus of credit.
A shortage of credit.
Greater profits for banks issuing credit.
A perfectly inelastic supply of credit in the market place.
Question # 5 of 20 ( Start time: 09:47:30 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 # 6 of 20 ( Start time: 09:47:52 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.
Government debt.
None of the given.
Question # 7 of 20 ( Start time: 09:48:57 PM ) Total Marks: 1
Other things being equal, expected income can be used as a direct measure of well-being:
Select correct option:
No matter what a person's preference to risk.
If and only if individuals are not risk-loving.
If and only if individuals are risk averse.
If and only if individuals are risk neutral.
Question # 8 of 20 ( Start time: 09:49:29 PM ) Total Marks: 1
Economists who are concerned about the behavior of individual households, firms and industries are studying:
Select correct option:
Microeconomics
Macroeconomics
Positive economics
Normative economics
Question # 9 of 20 ( Start time: 09:49:48 PM ) 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 # 10 of 20 ( Start time: 09:50:08 PM ) Total Marks: 1
The market structure in which strategic considerations are most important is:
Select correct option:
Monopolistic competition.
Oligopoly.
Pure competition.
Pure monopoly.
Question # 11 of 20 ( Start time: 09:50:38 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 # 12 of 20 ( Start time: 09:50:54 PM ) Total Marks: 1
Why the economy does not self correct quickly, one explanation for this is:
Select correct option:
With less consumption and more savings the interest rate will drop.
In the short run workers are fully employed and cannot produce enough to get to long run equilibrium.
Wages and prices are flexible
Wages and prices are sticky.
Question # 13 of 20 ( Start time: 09:52:22 PM ) Total Marks: 1
Our economy is characterized by:
Select correct option:
Unlimited wants and needs.
Unlimited material resources.
No energy resources.
Abundant productive labor.
Question # 14 of 20 ( Start time: 09:52:40 PM ) Total Marks: 1
Which of the following is TRUE about the production function?
Select correct option:
It relates inputs with output.
It generates a curve that is upward sloping.
It shows diminishing marginal product of an input, since it gets flatter as output rises.
All of the given options are true.
Question # 15 of 20 ( Start time: 09:53:07 PM ) Total Marks: 1
If the quantity supplied of mangoes exceeds the quantity demanded of mangoes:
Select correct option:
There is a shortage of mangoes.
Market forces will cause the price to fall.
Market forces will cause the price to rise.
The market is in equilibrium.
Question # 16 of 20 ( Start time: 09:53:23 PM ) 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 Scedule.
Demand Scedule.
Quantity supplied Scedule.
Quantity demanded Scedule.
Question # 17 of 20 ( Start time: 09:54:04 PM ) Total Marks: 1
Which of the following is true about the point on a nation's production-possibilities curve?
Select correct option:
It shows an undesirable combination of goods and services.
It shows the combinations of production that are unattainable, given current technology and resources.
It shows the level of production that will cause both unemployment and inflation.
It shows that resources are fully employed in producing a particular combination of goods and services.
Question # 18 of 20 ( Start time: 09:54:23 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 # 19 of 20 ( Start time: 09:54:51 PM ) Total Marks: 1
Which of the following is a benefit of real economic growth to a society?
Select correct option:
Everyone enjoys a greater nominal income.
The standard of living increases.
The burden of scarcity increases.
The society is less able to satisfy new wants.
Question # 20 of 20 ( Start time: 09:55:23 PM ) Total Marks: 1
You observe that the price of houses and the number of houses purchased both rise over the course of the year. You conclude that:
Select correct option:
The demand for houses has increased.
The demand curve for houses must be upward-sloping.
The supply of houses has increased.
Housing construction costs must be decreasing.
....................
Question # 1 of 20 ( Start time: 10:06:11 PM ) Total Marks: 1
Intermediate goods are meant for:
Select correct option:
Direct use by the consumers
further processing
The term do not exist
None
Question # 2 of 20 ( Start time: 10:06:34 PM ) Total Marks: 1
The law of diminishing marginal utility:
Select correct option:
Refers to the decrease in total satisfaction as more units of the good are consumed.
Refers to the fall in additional satisfaction created by consumption of more and more.
Refers to the units of a good.
Refers to the idea that total utility is negative.
Question # 3 of 20 ( Start time: 10:06:57 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 # 4 of 20 ( Start time: 10:07:13 PM ) Total Marks: 1
Internet products are also known as:
Select correct option:
Expensive products.
Information products.
Inferior products.
Superior products.
Question # 5 of 20 ( Start time: 10:08:37 PM ) Total Marks: 1
If Nominal GDP is divided by the GDP deflator, it is called:
Select correct option:
Real Gross Domestic Product (GDP)
Gross National product (GNP)
Net national Product (NNP)
None of the given.
Question # 6 of 20 ( Start time: 10:09:38 PM ) 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 # 7 of 20 ( Start time: 10:10:08 PM ) Total Marks: 1
The price elasticity of supply shows us:
Select correct option:
How steep the supply curve is.
How fast supply responds to price.
How much supply shifts when income changes.
How much quantity supplied responds to price changes.
Question # 8 of 20 ( Start time: 10:10:32 PM ) Total Marks: 1
The effect of a change in income on the quantity of the good consumed is called the:
Select correct option:
Income effect.
Budget effect.
Substitution effect.
Real income effect.
Question # 9 of 20 ( Start time: 10:10:45 PM ) Total Marks: 1
When drawing demand and supply curves, economists are assuming that the primary influence on production and purchasing decisions is:
Select correct option:
Price.
Cost of production.
The overall state of the economy.
Consumer incomes.
Question # 10 of 20 ( Start time: 10:10:58 PM ) Total Marks: 1
According the law of diminishing returns:
Select correct option:
The marginal product falls as more units of a variable factor are added to a fixed factor.
Marginal utility falls as more units of a product are consumed.
The total product falls as more units of a variable factor are added to a fixed factor.
The marginal product increases as more units of a variable factor are added to a fixed factor.
Question # 11 of 20 ( Start time: 10:11:14 PM ) Total Marks: 1
Suppose if investment rises by Rs 100 billion at each price level. If the value of the multiplier is 4, what is the amount of change in real GDP demanded at each price level?
Select correct option:
25
50
400
1000
Question # 12 of 20 ( Start time: 10:12:38 PM ) Total Marks: 1
If Competitive markets do not achieve equitable outcomes, then it is called:
Select correct option:
Imperfect market structure.
Market failure.
Not rational consumers.
None of the given options.
Question # 13 of 20 ( Start time: 10:13:54 PM ) Total Marks: 1
Total income minus net taxes is called:
Select correct option:
Disposable income
Personal income
Individual income
Per capita income
Question # 14 of 20 ( Start time: 10:14:14 PM ) Total Marks: 1
When oligopolists collude, they are able to:
Select correct option:
Raise price, but not restrict output
Raise price and restrict output, but not attain the monopoly profit
Raise price and restrict output, and therefore attain the monopoly profit
Restrict output, but not raise price
Question # 15 of 20 ( Start time: 10:14:44 PM ) Total Marks: 1
The most important factor in determining the long-run profit potential in monopolistic competition is:
Select correct option:
Free entry and exit.
The elasticity of the market demand curve.
The elasticity of the firm's demand curve.
The reaction of rival firms to a change in price.
Question # 16 of 20 ( Start time: 10:14:57 PM ) Total Marks: 1
Which of the following is NOT regarded as a source of inefficiency in monopolistic competition?
Select correct option:
Product diversity.
Excess capacity.
The fact that price exceeds marginal cost.
The fact that long-run average cost is not minimized.
Question # 17 of 20 ( Start time: 10:15:14 PM ) Total Marks: 1
The level of aggregate demand will decrease if the level of:
Select correct option:
Consumption spending increases
Imports decreases
Investment spending decreases
Government spending increases
Question # 18 of 20 ( Start time: 10:15:28 PM ) Total Marks: 1
An exchange rate system in which central banks are always ready to buy and sell their currencies at predetermined prices is called:
Select correct option:
A dirty floating exchange rate system.
A flexible exchange rate system.
A managed exchange rate system .
A fixed exchange rate system.
Question # 19 of 20 ( Start time: 10:15:43 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 # 20 of 20 ( Start time: 10:16:11 PM ) Total Marks: 1
Which of the following does NOT refer to macroeconomics?
Select correct option:
The study of the aggregate level of economic activity.
The study of the economic behavior of individual decision-making units such as consumers, resource owners, and business firms.
The study of the cause of unemployment.
The study of the cause of inflation.
..............
Question # 1 of 20 ( Start time: 10:35:10 PM ) 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 Scedule.
Demand Scedule.
Quantity supplied Scedule.
Quantity demanded Scedule.
Question # 2 of 20 ( Start time: 10:35:16 PM ) Total Marks: 1
The labour force is made up of:
Select correct option:
The number of people employed minus the number of people unemployed.
The number of people employed plus the number of people unemployed.
Just the number of people employed.
The whole population.
Question # 3 of 20 ( Start time: 10:35:33 PM ) Total Marks: 1
If Aggregate expenditures are more than aggregate production then their will be:
Select correct option:
Inflationary gap in economy.
Deflationary gap in economy.
Dynamic gap in economy.
None of the given.
Question # 4 of 20 ( Start time: 10:37:00 PM ) Total Marks: 1
The most important factor in determining the long-run profit potential in monopolistic competition is:
Select correct option:
Free entry and exit.
The elasticity of the market demand curve.
The elasticity of the firm's demand curve.
The reaction of rival firms to a change in price.
Question # 5 of 20 ( Start time: 10:37:15 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 # 6 of 20 ( Start time: 10:37:40 PM ) 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 # 7 of 20 ( Start time: 10:37:46 PM ) Total Marks: 1
The average propensity to save is the ratio of:
Select correct option:
A change in saving to a change in disposable income.
A change in saving to total disposable income at a specific income level.
Total saving to total disposable income at a specific income level.
Total saving to a change in disposable income.
Question # 8 of 20 ( Start time: 10:39:11 PM ) Total Marks: 1
Naima has just finished school and is waiting to report to his new job at the beginning of the month. Naima is considered to be:
Select correct option:
Structurally unemployed.
Frictionally unemployed.
Cyclically unemployed.
Employed.
Question # 9 of 20 ( Start time: 10:39:33 PM ) Total Marks: 1
Graphically, marginal revenue is defined as:
Select correct option:
The slope of a line from the origin to a point on the total revenue curve.
The slope of a line from the origin to the end of the total revenue curve.
The slope of the total revenue curve at a given point.
The vertical intercept of a line tangent to the total revenue curve at a given point.
Question # 10 of 20 ( Start time: 10:39:56 PM ) Total Marks: 1
An indifference curve is:
Select correct option:
A collection of market baskets that are equally desirable to the consumer.
A collection of market baskets that the consumer can buy.
A curve whose elasticity is constant for every price.
A curve which passes through the origin and includes all of the market baskets that the consumer regards as being equivalent.
Question # 11 of 20 ( Start time: 10:40:10 PM ) Total Marks: 1
If Competitive markets do not achieve equitable outcomes, then it is called:
Select correct option:
Imperfect market structure.
Market failure.
Not rational consumers.
None of the given options.
Question # 12 of 20 ( Start time: 10:40:15 PM ) Total Marks: 1
When an industry's raw material costs decrease, other things remaining the same:
Select correct option:
The supply curve shifts to the right.
The supply curve shifts to the left.
Output increases regardless of the market price and the supply curve shifts upward.
Output decreases and the market price also decrease.
Question # 13 of 20 ( Start time: 10:40:36 PM ) Total Marks: 1
The total cost (TC) function is given as: TC = 200 + 5Q. What is the variable cost?
Select correct option:
200.
5Q.
5.
5 + (200/Q).
Question # 14 of 20 ( Start time: 10:41:07 PM ) Total Marks: 1
Which of the following is true about the total cost curve?
Select correct option:
It relates output with total cost.
It is usually upward sloping.
Gets steeper as output rises, due to diminishing marginal product of an input.
All of the given options are true.
Question # 15 of 20 ( Start time: 10:41:21 PM ) Total Marks: 1
The demand curve facing a perfectly competitive firm is:
Select correct option:
The same as its average revenue curve but not the same as its marginal revenue curve.
The same as its average revenue curve and its marginal revenue curve.
The same as its marginal revenue curve but not its average revenue curve.
Not the same as either its marginal revenue curve or its average revenue curve.
Question # 16 of 20 ( Start time: 10:41:38 PM ) Total Marks: 1
Which of the following concepts apply to oligopoly more than to any other market structure?
Select correct option:
Advertising and product differentiation
Easy entry and more than one firm in the market
Homogeneous product and perfect information
Concentration and interdependence
Question # 17 of 20 ( Start time: 10:41:59 PM ) Total Marks: 1
In which market structure(s) price will exceed marginal revenue?
Select correct option:
Differentiated oligopoly and monopoly only.
Standardized oligopoly and pure competition only.
Monopolistic competition and monopoly only.
Monopolistic competition, oligopoly, and monopoly.
Question # 18 of 20 ( Start time: 10:43:06 PM ) Total Marks: 1
Inverse relationship between the inflation rate and the unemployment rate is explained by:
Select correct option:
Aggregate demand curve.
Price adjustment curve.
Phillips Curve.
Okun law.
Question # 19 of 20 ( Start time: 10:43:44 PM ) Total Marks: 1
A source of fluctuations in investment spending is:
Select correct option:
Changes in government expectations of future output growth.
Changes in household's expectations about future output growth.
Changes in household's expectations about future risk.
Changes in investor's expectations about future profits.
Question # 20 of 20 ( Start time: 10:44:00 PM ) Total Marks: 1
If the demand curve for a good is downward sloping, then the good:
Select correct option:
Must be normal.
Must be inferior.
Must be Giffen.
Can be normal or inferior.
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 Scedule.
Demand Scedule.
Quantity supplied Scedule.
Quantity demanded Scedule.
Question # 2 of 20 ( Start time: 10:35:16 PM ) Total Marks: 1
The labour force is made up of:
Select correct option:
The number of people employed minus the number of people unemployed.
The number of people employed plus the number of people unemployed.
Just the number of people employed.
The whole population.
Question # 3 of 20 ( Start time: 10:35:33 PM ) Total Marks: 1
If Aggregate expenditures are more than aggregate production then their will be:
Select correct option:
Inflationary gap in economy.
Deflationary gap in economy.
Dynamic gap in economy.
None of the given.
Question # 4 of 20 ( Start time: 10:37:00 PM ) Total Marks: 1
The most important factor in determining the long-run profit potential in monopolistic competition is:
Select correct option:
Free entry and exit.
The elasticity of the market demand curve.
The elasticity of the firm's demand curve.
The reaction of rival firms to a change in price.
Question # 5 of 20 ( Start time: 10:37:15 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 # 6 of 20 ( Start time: 10:37:40 PM ) 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 # 7 of 20 ( Start time: 10:37:46 PM ) Total Marks: 1
The average propensity to save is the ratio of:
Select correct option:
A change in saving to a change in disposable income.
A change in saving to total disposable income at a specific income level.
Total saving to total disposable income at a specific income level.
Total saving to a change in disposable income.
Question # 8 of 20 ( Start time: 10:39:11 PM ) Total Marks: 1
Naima has just finished school and is waiting to report to his new job at the beginning of the month. Naima is considered to be:
Select correct option:
Structurally unemployed.
Frictionally unemployed.
Cyclically unemployed.
Employed.
Question # 9 of 20 ( Start time: 10:39:33 PM ) Total Marks: 1
Graphically, marginal revenue is defined as:
Select correct option:
The slope of a line from the origin to a point on the total revenue curve.
The slope of a line from the origin to the end of the total revenue curve.
The slope of the total revenue curve at a given point.
The vertical intercept of a line tangent to the total revenue curve at a given point.
Question # 10 of 20 ( Start time: 10:39:56 PM ) Total Marks: 1
An indifference curve is:
Select correct option:
A collection of market baskets that are equally desirable to the consumer.
A collection of market baskets that the consumer can buy.
A curve whose elasticity is constant for every price.
A curve which passes through the origin and includes all of the market baskets that the consumer regards as being equivalent.
Question # 11 of 20 ( Start time: 10:40:10 PM ) Total Marks: 1
If Competitive markets do not achieve equitable outcomes, then it is called:
Select correct option:
Imperfect market structure.
Market failure.
Not rational consumers.
None of the given options.
Question # 12 of 20 ( Start time: 10:40:15 PM ) Total Marks: 1
When an industry's raw material costs decrease, other things remaining the same:
Select correct option:
The supply curve shifts to the right.
The supply curve shifts to the left.
Output increases regardless of the market price and the supply curve shifts upward.
Output decreases and the market price also decrease.
Question # 13 of 20 ( Start time: 10:40:36 PM ) Total Marks: 1
The total cost (TC) function is given as: TC = 200 + 5Q. What is the variable cost?
Select correct option:
200.
5Q.
5.
5 + (200/Q).
Question # 14 of 20 ( Start time: 10:41:07 PM ) Total Marks: 1
Which of the following is true about the total cost curve?
Select correct option:
It relates output with total cost.
It is usually upward sloping.
Gets steeper as output rises, due to diminishing marginal product of an input.
All of the given options are true.
Question # 15 of 20 ( Start time: 10:41:21 PM ) Total Marks: 1
The demand curve facing a perfectly competitive firm is:
Select correct option:
The same as its average revenue curve but not the same as its marginal revenue curve.
The same as its average revenue curve and its marginal revenue curve.
The same as its marginal revenue curve but not its average revenue curve.
Not the same as either its marginal revenue curve or its average revenue curve.
Question # 16 of 20 ( Start time: 10:41:38 PM ) Total Marks: 1
Which of the following concepts apply to oligopoly more than to any other market structure?
Select correct option:
Advertising and product differentiation
Easy entry and more than one firm in the market
Homogeneous product and perfect information
Concentration and interdependence
Question # 17 of 20 ( Start time: 10:41:59 PM ) Total Marks: 1
In which market structure(s) price will exceed marginal revenue?
Select correct option:
Differentiated oligopoly and monopoly only.
Standardized oligopoly and pure competition only.
Monopolistic competition and monopoly only.
Monopolistic competition, oligopoly, and monopoly.
Question # 18 of 20 ( Start time: 10:43:06 PM ) Total Marks: 1
Inverse relationship between the inflation rate and the unemployment rate is explained by:
Select correct option:
Aggregate demand curve.
Price adjustment curve.
Phillips Curve.
Okun law.
Question # 19 of 20 ( Start time: 10:43:44 PM ) Total Marks: 1
A source of fluctuations in investment spending is:
Select correct option:
Changes in government expectations of future output growth.
Changes in household's expectations about future output growth.
Changes in household's expectations about future risk.
Changes in investor's expectations about future profits.
Question # 20 of 20 ( Start time: 10:44:00 PM ) Total Marks: 1
If the demand curve for a good is downward sloping, then the good:
Select correct option:
Must be normal.
Must be inferior.
Must be Giffen.
Can be normal or inferior.
......................
Question # 1 of 20 ( Start time: 04:59:18 AM ) Total Marks: 1
The good produced by a monopoly:
Select correct option:
Has perfect substitutes
Has no substitutes at all
Has no close substitutes
Can be easily duplicated
Question # 2 of 20 ( Start time: 04:59:48 AM ) Total Marks: 1
A normative economic statement:
Select correct option:
Is a statement of fact.
Is a hypothesis used to test economic theory.
Is a statement of what ought to be, not what is.
Is a statement of what will occur if certain assumptions are true.
Question # 3 of 20 ( Start time: 05:00:05 AM ) Total Marks: 1
An indifference curve is:
Select correct option:
A collection of market baskets that are equally desirable to the consumer.
A collection of market baskets that the consumer can buy.
A curve whose elasticity is constant for every price.
A curve which passes through the origin and includes all of the market baskets that the consumer regards as being equivalent.
Question # 4 of 20 ( Start time: 05:00:24 AM ) 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 20 ( Start time: 05:00:48 AM ) Total Marks: 1
Aggregate demand curve slopes upward for both Keynes and classical.
Select correct option:
True.
False.
Question # 6 of 20 ( Start time: 05:02:18 AM ) Total Marks: 1
The numerical measurement of a consumer’s preference is called:
Select correct option:
Satisfaction.
Use.
Pleasure.
Utility.
Question # 7 of 20 ( Start time: 05:02:29 AM ) Total Marks: 1
Assume Leisure is a normal good. If income effect equals substitution effect then a wage rate increase will lead a person to:
Select correct option:
Increase hours of work
Decrease hours of work
Not change hours of work
None of the given options
Question # 8 of 20 ( Start time: 05:02:44 AM ) 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 # 9 of 20 ( Start time: 05:03:02 AM ) Total Marks: 1
Following are the disadvantages of monopoly EXCEPT:
Select correct option:
Monopolists earn higher profits.
Monopolists produce high quality goods at higher prices.
Most of the “surplus” (producer + consumer surplus) accrues to monopolists.
Monopolists do not pay sufficient attention to increasing efficiency.
Question # 10 of 20 ( Start time: 05:03:17 AM ) Total Marks: 1
If the income elasticity of demand is 1/2, the good is:
Select correct option:
A luxury.
A normal good (but not a luxury).
An inferior good.
A Giffen good.
Question # 11 of 20 ( Start time: 05:03:32 AM ) Total Marks: 1
A nation's balance of payments can be affected by changes in:
Select correct option:
Foreign income.
The differential between domestic and foreign interest rates.
The real exchange rate.
All of the given options.
Question # 12 of 20 ( Start time: 05:03:46 AM ) Total Marks: 1
Which of the following is NOT regarded as a source of inefficiency in monopolistic competition?
Select correct option:
Product diversity.
Excess capacity.
The fact that price exceeds marginal cost.
The fact that long-run average cost is not minimized.
Question # 13 of 20 ( Start time: 05:04:00 AM ) Total Marks: 1
The firm's demand for labor is:
Select correct option:
The marginal revenue product curve
The marginal input cost curve
The marginal cost curve
Undetermined
Question # 14 of 20 ( Start time: 05:04:16 AM ) Total Marks: 1
If Competitive markets do not achieve equitable outcomes, then it is called:
Select correct option:
Imperfect market structure.
Market failure.
Not rational consumers.
None of the given options.
Question # 15 of 20 ( Start time: 05:04:23 AM ) 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 # 16 of 20 ( Start time: 05:05:02 AM ) 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 # 17 of 20 ( Start time: 05:05:16 AM ) Total Marks: 1
Famous concept “Government has a role in maintaining full employment” is given by:
Select correct option:
J.M. Keynes.
Adam Smith.
David Ricardo.
J.B. Say.
Question # 18 of 20 ( Start time: 05:05:49 AM ) Total Marks: 1
The labour force is made up of:
Select correct option:
The number of people employed minus the number of people unemployed.
The number of people employed plus the number of people unemployed.
Just the number of people employed.
The whole population.
Question # 19 of 20 ( Start time: 05:05:59 AM ) Total Marks: 1
Any upward shift in Aggregate demand curve will cause change in the price level and output will:
Select correct option:
Be unaffected
Increase
Question # 20 of 20 ( Start time: 05:07:25 AM ) Total Marks: 1
Other things being equal, expected income can be used as a direct measure of well-being:
Select correct option:
No matter what a person's preference to risk.
If and only if individuals are not risk-loving.
If and only if individuals are risk averse.
If and only if individuals are risk neutral.
The good produced by a monopoly:
Select correct option:
Has perfect substitutes
Has no substitutes at all
Has no close substitutes
Can be easily duplicated
Question # 2 of 20 ( Start time: 04:59:48 AM ) Total Marks: 1
A normative economic statement:
Select correct option:
Is a statement of fact.
Is a hypothesis used to test economic theory.
Is a statement of what ought to be, not what is.
Is a statement of what will occur if certain assumptions are true.
Question # 3 of 20 ( Start time: 05:00:05 AM ) Total Marks: 1
An indifference curve is:
Select correct option:
A collection of market baskets that are equally desirable to the consumer.
A collection of market baskets that the consumer can buy.
A curve whose elasticity is constant for every price.
A curve which passes through the origin and includes all of the market baskets that the consumer regards as being equivalent.
Question # 4 of 20 ( Start time: 05:00:24 AM ) 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 20 ( Start time: 05:00:48 AM ) Total Marks: 1
Aggregate demand curve slopes upward for both Keynes and classical.
Select correct option:
True.
False.
Question # 6 of 20 ( Start time: 05:02:18 AM ) Total Marks: 1
The numerical measurement of a consumer’s preference is called:
Select correct option:
Satisfaction.
Use.
Pleasure.
Utility.
Question # 7 of 20 ( Start time: 05:02:29 AM ) Total Marks: 1
Assume Leisure is a normal good. If income effect equals substitution effect then a wage rate increase will lead a person to:
Select correct option:
Increase hours of work
Decrease hours of work
Not change hours of work
None of the given options
Question # 8 of 20 ( Start time: 05:02:44 AM ) 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 # 9 of 20 ( Start time: 05:03:02 AM ) Total Marks: 1
Following are the disadvantages of monopoly EXCEPT:
Select correct option:
Monopolists earn higher profits.
Monopolists produce high quality goods at higher prices.
Most of the “surplus” (producer + consumer surplus) accrues to monopolists.
Monopolists do not pay sufficient attention to increasing efficiency.
Question # 10 of 20 ( Start time: 05:03:17 AM ) Total Marks: 1
If the income elasticity of demand is 1/2, the good is:
Select correct option:
A luxury.
A normal good (but not a luxury).
An inferior good.
A Giffen good.
Question # 11 of 20 ( Start time: 05:03:32 AM ) Total Marks: 1
A nation's balance of payments can be affected by changes in:
Select correct option:
Foreign income.
The differential between domestic and foreign interest rates.
The real exchange rate.
All of the given options.
Question # 12 of 20 ( Start time: 05:03:46 AM ) Total Marks: 1
Which of the following is NOT regarded as a source of inefficiency in monopolistic competition?
Select correct option:
Product diversity.
Excess capacity.
The fact that price exceeds marginal cost.
The fact that long-run average cost is not minimized.
Question # 13 of 20 ( Start time: 05:04:00 AM ) Total Marks: 1
The firm's demand for labor is:
Select correct option:
The marginal revenue product curve
The marginal input cost curve
The marginal cost curve
Undetermined
Question # 14 of 20 ( Start time: 05:04:16 AM ) Total Marks: 1
If Competitive markets do not achieve equitable outcomes, then it is called:
Select correct option:
Imperfect market structure.
Market failure.
Not rational consumers.
None of the given options.
Question # 15 of 20 ( Start time: 05:04:23 AM ) 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 # 16 of 20 ( Start time: 05:05:02 AM ) 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 # 17 of 20 ( Start time: 05:05:16 AM ) Total Marks: 1
Famous concept “Government has a role in maintaining full employment” is given by:
Select correct option:
J.M. Keynes.
Adam Smith.
David Ricardo.
J.B. Say.
Question # 18 of 20 ( Start time: 05:05:49 AM ) Total Marks: 1
The labour force is made up of:
Select correct option:
The number of people employed minus the number of people unemployed.
The number of people employed plus the number of people unemployed.
Just the number of people employed.
The whole population.
Question # 19 of 20 ( Start time: 05:05:59 AM ) Total Marks: 1
Any upward shift in Aggregate demand curve will cause change in the price level and output will:
Select correct option:
Be unaffected
Increase
Question # 20 of 20 ( Start time: 05:07:25 AM ) Total Marks: 1
Other things being equal, expected income can be used as a direct measure of well-being:
Select correct option:
No matter what a person's preference to risk.
If and only if individuals are not risk-loving.
If and only if individuals are risk averse.
If and only if individuals are risk neutral.
....................
Question # 1 of 20 ( Start time: 05:20:40 AM ) Total Marks: 1
Internet products are also known as:
Select correct option:
Expensive products.
Information products.
Inferior products.
Superior products.
Question # 2 of 20 ( Start time: 05:20:46 AM ) Total Marks: 1
While drawing a given market demand curve,---------------- is not considered constant.
Select correct option:
Income.
The price of the good in question.
The prices of related goods.
Preferences.
Question # 3 of 20 ( Start time: 05:21:50 AM ) Total Marks: 1
What does the term "balance of payments deficit" refer to?
Select correct option:
An increase in official international reserves.
A positive statistical discrepancy.
A negative statistical discrepancy.
A decline in official international reserves.
Question # 4 of 20 ( Start time: 05:22:07 AM ) Total Marks: 1
What would result from a depreciation of the pound on the foreign exchange market?
Select correct option:
An increase in the price of imported computers.
A fall in the purchasing power of US tourists in London.
A fall in the price of imported computers.
An increase in the purchasing power of UK tourists overseas.
Question # 5 of 20 ( Start time: 05:22:25 AM ) Total Marks: 1
The numerical measurement of a consumer’s preference is called:
Select correct option:
Satisfaction.
Use.
Pleasure.
Utility.
Question # 6 of 20 ( Start time: 05:22:31 AM ) Total Marks: 1
A graph showing all the combinations of capital and labour available for a given total cost is the:
Select correct option:
Budget constraint.
Expenditure set.
isoquant.
isocost line.
Question # 7 of 20 ( Start time: 05:22:48 AM ) Total Marks: 1
All other things equal, GDP will rise if:
Select correct option:
Imports rise
Exports fall
Durable goods consumption rises
Military spending falls
Question # 8 of 20 ( Start time: 05:23:03 AM ) Total Marks: 1
The substitution effect of a price decrease for a good with a normal indifference curve pattern:
Select correct option:
Is always inversely related to the price change.
Measures the change in consumption of the good that is due to the consumer’s feeling of being richer.
Is measured by the horizontal distance between the original and the new indifference curves.
Is sufficient information to plot an ordinary demand curve for the commodity being considered.
Question # 9 of 20 ( Start time: 05:23:18 AM ) Total Marks: 1
A firm maximizes profit by operating at the level of output where:
Select correct option:
Average revenue equals average cost.
Average revenue equals average variable cost.
Total costs are minimized.
Marginal revenue equals marginal cost.
Question # 10 of 20 ( Start time: 05:23:34 AM ) 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 # 11 of 20 ( Start time: 05:23:51 AM ) Total Marks: 1
Which of the following do not affect a nation's balance of payments?
Select correct option:
Foreign income.
The differential between domestic and foreign interest rates.
The real exchange rate.
Labor force.
Question # 12 of 20 ( Start time: 05:24:27 AM ) Total Marks: 1
A price taker is:
Select correct option:
A firm that accepts different prices from different customers.
A monopolistically competitive firm.
A firm that cannot influence the market price.
An oligopolistic firm.
Question # 13 of 20 ( Start time: 05:24:43 AM ) Total Marks: 1
The labour force is made up of:
Select correct option:
The number of people employed minus the number of people unemployed.
The number of people employed plus the number of people unemployed.
Just the number of people employed.
The whole population.
Question # 14 of 20 ( Start time: 05:24:49 AM ) Total Marks: 1
The relationship between saving and income is known as the:
Select correct option:
45-degree line.
Consumption function.
Saving function.
Disposable income.
Question # 15 of 20 ( Start time: 05:25:37 AM ) 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
Question # 16 of 20 ( Start time: 05:25:51 AM ) Total Marks: 1
Suppose the consumption function is C = 1000 + 0.75Y. If Y = 100, then the amount of consumption is:
Select correct option:
1750.
1500.
1075.
1100.
Question # 17 of 20 ( Start time: 05:26:18 AM ) Total Marks: 1
Assume Leisure is a normal good. If income effect equals substitution effect then a wage rate increase will lead a person to:
Select correct option:
Increase hours of work
Decrease hours of work
Not change hours of work
None of the given options
Question # 18 of 20 ( Start time: 05:26:32 AM ) Total Marks: 1
When the price elasticity of demand for a good is greater than 1, we say that the demand is:
Select correct option:
Increasing.
Decreasing.
Elastic.
Inelastic.
Question # 19 of 20 ( Start time: 05:26:45 AM ) Total Marks: 1
Which of the following is TRUE about L-shaped isoquant?
Select correct option:
It is impossible.
It indicates that the firm could switch from one output to another costlessly.
It indicates that the firm could not switch from one output to another.
It indicates that capital and labor cannot be substituted for each other in production.
Question # 20 of 20 ( Start time: 05:27:14 AM ) Total Marks: 1
Production possibilities analysis assumes that:
Select correct option:
Resources and technology increase with production.
Resources are used to produce thousands of goods.
Extra resources are saved for emergency use.
Resources are used in a technically efficient way.
Internet products are also known as:
Select correct option:
Expensive products.
Information products.
Inferior products.
Superior products.
Question # 2 of 20 ( Start time: 05:20:46 AM ) Total Marks: 1
While drawing a given market demand curve,---------------- is not considered constant.
Select correct option:
Income.
The price of the good in question.
The prices of related goods.
Preferences.
Question # 3 of 20 ( Start time: 05:21:50 AM ) Total Marks: 1
What does the term "balance of payments deficit" refer to?
Select correct option:
An increase in official international reserves.
A positive statistical discrepancy.
A negative statistical discrepancy.
A decline in official international reserves.
Question # 4 of 20 ( Start time: 05:22:07 AM ) Total Marks: 1
What would result from a depreciation of the pound on the foreign exchange market?
Select correct option:
An increase in the price of imported computers.
A fall in the purchasing power of US tourists in London.
A fall in the price of imported computers.
An increase in the purchasing power of UK tourists overseas.
Question # 5 of 20 ( Start time: 05:22:25 AM ) Total Marks: 1
The numerical measurement of a consumer’s preference is called:
Select correct option:
Satisfaction.
Use.
Pleasure.
Utility.
Question # 6 of 20 ( Start time: 05:22:31 AM ) Total Marks: 1
A graph showing all the combinations of capital and labour available for a given total cost is the:
Select correct option:
Budget constraint.
Expenditure set.
isoquant.
isocost line.
Question # 7 of 20 ( Start time: 05:22:48 AM ) Total Marks: 1
All other things equal, GDP will rise if:
Select correct option:
Imports rise
Exports fall
Durable goods consumption rises
Military spending falls
Question # 8 of 20 ( Start time: 05:23:03 AM ) Total Marks: 1
The substitution effect of a price decrease for a good with a normal indifference curve pattern:
Select correct option:
Is always inversely related to the price change.
Measures the change in consumption of the good that is due to the consumer’s feeling of being richer.
Is measured by the horizontal distance between the original and the new indifference curves.
Is sufficient information to plot an ordinary demand curve for the commodity being considered.
Question # 9 of 20 ( Start time: 05:23:18 AM ) Total Marks: 1
A firm maximizes profit by operating at the level of output where:
Select correct option:
Average revenue equals average cost.
Average revenue equals average variable cost.
Total costs are minimized.
Marginal revenue equals marginal cost.
Question # 10 of 20 ( Start time: 05:23:34 AM ) 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 # 11 of 20 ( Start time: 05:23:51 AM ) Total Marks: 1
Which of the following do not affect a nation's balance of payments?
Select correct option:
Foreign income.
The differential between domestic and foreign interest rates.
The real exchange rate.
Labor force.
Question # 12 of 20 ( Start time: 05:24:27 AM ) Total Marks: 1
A price taker is:
Select correct option:
A firm that accepts different prices from different customers.
A monopolistically competitive firm.
A firm that cannot influence the market price.
An oligopolistic firm.
Question # 13 of 20 ( Start time: 05:24:43 AM ) Total Marks: 1
The labour force is made up of:
Select correct option:
The number of people employed minus the number of people unemployed.
The number of people employed plus the number of people unemployed.
Just the number of people employed.
The whole population.
Question # 14 of 20 ( Start time: 05:24:49 AM ) Total Marks: 1
The relationship between saving and income is known as the:
Select correct option:
45-degree line.
Consumption function.
Saving function.
Disposable income.
Question # 15 of 20 ( Start time: 05:25:37 AM ) 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
Question # 16 of 20 ( Start time: 05:25:51 AM ) Total Marks: 1
Suppose the consumption function is C = 1000 + 0.75Y. If Y = 100, then the amount of consumption is:
Select correct option:
1750.
1500.
1075.
1100.
Question # 17 of 20 ( Start time: 05:26:18 AM ) Total Marks: 1
Assume Leisure is a normal good. If income effect equals substitution effect then a wage rate increase will lead a person to:
Select correct option:
Increase hours of work
Decrease hours of work
Not change hours of work
None of the given options
Question # 18 of 20 ( Start time: 05:26:32 AM ) Total Marks: 1
When the price elasticity of demand for a good is greater than 1, we say that the demand is:
Select correct option:
Increasing.
Decreasing.
Elastic.
Inelastic.
Question # 19 of 20 ( Start time: 05:26:45 AM ) Total Marks: 1
Which of the following is TRUE about L-shaped isoquant?
Select correct option:
It is impossible.
It indicates that the firm could switch from one output to another costlessly.
It indicates that the firm could not switch from one output to another.
It indicates that capital and labor cannot be substituted for each other in production.
Question # 20 of 20 ( Start time: 05:27:14 AM ) Total Marks: 1
Production possibilities analysis assumes that:
Select correct option:
Resources and technology increase with production.
Resources are used to produce thousands of goods.
Extra resources are saved for emergency use.
Resources are used in a technically efficient way.
......................
Question # 1 of 20 ( Start time: 05:34:15 AM ) Total Marks: 1
According to Classical Economists, Economy always remains:
Select correct option:
At full employment level.
Below full employment level.
Above full employment level.
None of the given options.
Question # 2 of 20 ( Start time: 05:34:47 AM ) 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 # 3 of 20 ( Start time: 05:35:03 AM ) Total Marks: 1
Personal income:
Select correct option:
Is income received by individuals during a given year.
Is the income individuals have available for spending during a given year.
Equals national income minus indirect taxes.
Is the sum of wages plus interest received by individuals during a given year.
Question # 4 of 20 ( Start time: 05:35:29 AM ) Total Marks: 1
If a profit-maximizing firm finds that, at its current level of production, MR < MC, it will:
Select correct option:
Increase output.
Operate at a loss.
Shut down.
Decrease output.
Question # 5 of 20 ( Start time: 05:35:49 AM ) 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 # 6 of 20 ( Start time: 05:36:02 AM ) Total Marks: 1
What is the reason of leftward shift in the demand curve for product A?
Select correct option:
A decrease in income if A is an inferior good.
An increase in income if A is a normal good.
An increase in the price of a product that is a close substitute for A.
An increase in the price of a product that is complementary to A.
Question # 7 of 20 ( Start time: 05:36:19 AM ) Total Marks: 1
A graph showing all the combinations of capital and labour available for a given total cost is the:
Select correct option:
Budget constraint.
Expenditure set.
isoquant.
isocost line.
Question # 8 of 20 ( Start time: 05:36:41 AM ) Total Marks: 1
When an industry's raw material costs decrease, other things remaining the same:
Select correct option:
The supply curve shifts to the right.
The supply curve shifts to the left.
Output increases regardless of the market price and the supply curve shifts upward.
Output decreases and the market price also decrease.
Question # 9 of 20 ( Start time: 05:37:04 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 # 10 of 20 ( Start time: 05:37:20 AM ) Total Marks: 1
The unemployment rate is equal to :
Select correct option:
Number of employed persons / labour force x 100.
Number of unemployed persons + labour force.
(Number of unemployed persons / labour force) x 100.
None of the given options.
Question # 11 of 20 ( Start time: 05:37:46 AM ) 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.
Consumer preferences.
The level of profits of firms.
Question # 12 of 20 ( Start time: 05:38:02 AM ) Total Marks: 1
The key to keep inflation low is to keep monetary growth aligned with expected real output growth is The Real Business Cycles (RBC) School’s thought.
Select correct option:
True
False
Question # 13 of 20 ( Start time: 05:38:27 AM ) Total Marks: 1
Which of the following is true about the entrepreneur?
Select correct option:
An entrepreneur is an innovator.
An entrepreneur is someone who brings resources together and produces a product.
An entrepreneur is a risk taker.
All of the given options are correct.
Question # 14 of 20 ( Start time: 05:38:41 AM ) Total Marks: 1
The price level in long run is determined by:
Select correct option:
Aggregate supply.
Aggregate demand.
The government.
Money supply.
Question # 15 of 20 ( Start time: 05:39:41 AM ) Total Marks: 1
Which of the following is a correct statement about the substitution effect?
Select correct option:
The substitution effect is always negative.
The substitution effect is positive for an inferior good.
The substitution effect measures how demand changes when income changes.
The substitution effect is positive for a Giffen good.
Question # 16 of 20 ( Start time: 05:39:55 AM ) 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 # 17 of 20 ( Start time: 05:40:14 AM ) Total Marks: 1
--------------- is the rate at which a firm can substitute capital for labour and hold output constant.
Select correct option:
Diminishing marginal returns.
Marginal rate of substitution.
Marginal rate of factor substitution.
Marginal rate of production.
Question # 18 of 20 ( Start time: 05:40:29 AM ) 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 # 19 of 20 ( Start time: 05:40:36 AM ) Total Marks: 1
Which of the following may cause decrease in national income?
Select correct option:
Rise in imports.
Rise in exports.
Rise in consumer spending.
Rise in government spending.
Question # 20 of 20 ( Start time: 05:41:56 AM ) Total Marks: 1
Which of the following is NOT regarded as a source of inefficiency in monopolistic competition?
Select correct option:
Product diversity.
Excess capacity.
The fact that price exceeds marginal cost.
The fact that long-run average cost is not minimized.
According to Classical Economists, Economy always remains:
Select correct option:
At full employment level.
Below full employment level.
Above full employment level.
None of the given options.
Question # 2 of 20 ( Start time: 05:34:47 AM ) 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 # 3 of 20 ( Start time: 05:35:03 AM ) Total Marks: 1
Personal income:
Select correct option:
Is income received by individuals during a given year.
Is the income individuals have available for spending during a given year.
Equals national income minus indirect taxes.
Is the sum of wages plus interest received by individuals during a given year.
Question # 4 of 20 ( Start time: 05:35:29 AM ) Total Marks: 1
If a profit-maximizing firm finds that, at its current level of production, MR < MC, it will:
Select correct option:
Increase output.
Operate at a loss.
Shut down.
Decrease output.
Question # 5 of 20 ( Start time: 05:35:49 AM ) 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 # 6 of 20 ( Start time: 05:36:02 AM ) Total Marks: 1
What is the reason of leftward shift in the demand curve for product A?
Select correct option:
A decrease in income if A is an inferior good.
An increase in income if A is a normal good.
An increase in the price of a product that is a close substitute for A.
An increase in the price of a product that is complementary to A.
Question # 7 of 20 ( Start time: 05:36:19 AM ) Total Marks: 1
A graph showing all the combinations of capital and labour available for a given total cost is the:
Select correct option:
Budget constraint.
Expenditure set.
isoquant.
isocost line.
Question # 8 of 20 ( Start time: 05:36:41 AM ) Total Marks: 1
When an industry's raw material costs decrease, other things remaining the same:
Select correct option:
The supply curve shifts to the right.
The supply curve shifts to the left.
Output increases regardless of the market price and the supply curve shifts upward.
Output decreases and the market price also decrease.
Question # 9 of 20 ( Start time: 05:37:04 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 # 10 of 20 ( Start time: 05:37:20 AM ) Total Marks: 1
The unemployment rate is equal to :
Select correct option:
Number of employed persons / labour force x 100.
Number of unemployed persons + labour force.
(Number of unemployed persons / labour force) x 100.
None of the given options.
Question # 11 of 20 ( Start time: 05:37:46 AM ) 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.
Consumer preferences.
The level of profits of firms.
Question # 12 of 20 ( Start time: 05:38:02 AM ) Total Marks: 1
The key to keep inflation low is to keep monetary growth aligned with expected real output growth is The Real Business Cycles (RBC) School’s thought.
Select correct option:
True
False
Question # 13 of 20 ( Start time: 05:38:27 AM ) Total Marks: 1
Which of the following is true about the entrepreneur?
Select correct option:
An entrepreneur is an innovator.
An entrepreneur is someone who brings resources together and produces a product.
An entrepreneur is a risk taker.
All of the given options are correct.
Question # 14 of 20 ( Start time: 05:38:41 AM ) Total Marks: 1
The price level in long run is determined by:
Select correct option:
Aggregate supply.
Aggregate demand.
The government.
Money supply.
Question # 15 of 20 ( Start time: 05:39:41 AM ) Total Marks: 1
Which of the following is a correct statement about the substitution effect?
Select correct option:
The substitution effect is always negative.
The substitution effect is positive for an inferior good.
The substitution effect measures how demand changes when income changes.
The substitution effect is positive for a Giffen good.
Question # 16 of 20 ( Start time: 05:39:55 AM ) 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 # 17 of 20 ( Start time: 05:40:14 AM ) Total Marks: 1
--------------- is the rate at which a firm can substitute capital for labour and hold output constant.
Select correct option:
Diminishing marginal returns.
Marginal rate of substitution.
Marginal rate of factor substitution.
Marginal rate of production.
Question # 18 of 20 ( Start time: 05:40:29 AM ) 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 # 19 of 20 ( Start time: 05:40:36 AM ) Total Marks: 1
Which of the following may cause decrease in national income?
Select correct option:
Rise in imports.
Rise in exports.
Rise in consumer spending.
Rise in government spending.
Question # 20 of 20 ( Start time: 05:41:56 AM ) Total Marks: 1
Which of the following is NOT regarded as a source of inefficiency in monopolistic competition?
Select correct option:
Product diversity.
Excess capacity.
The fact that price exceeds marginal cost.
The fact that long-run average cost is not minimized.
................
