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# ECO 402 QUIZ

ECO402 - Microeconomics Online Quiz No 01 Solution and Discussion last date 16 november 2015

Views: 517

### Replies to This Discussion

My quiz for today

AND

Attachments:

quiz # 4,5,6

Attachments:

do u know anwsers .. "AMJAD SOHAIL"

anyone plzzzzzz

quiz # 7,8,9

Attachments:

and quiz 10,

Attachments:

# Eco402 Quiz No1 2015

Eco402

The demand curve is downward sloping if the price elasticity of demand is:

• Zero.
• Infinite.
• Positive.
• Negative.

If the percentage change in quantity demanded for milk is less than the percentage change in price of milk then the price elasticity of demand for milk is:

• Elastic.
• Inelastic.
• Unitary elastic.
• Perfectly elastic.

Income elasticity of demand for a superior good is always:

• Negative.
• Between 0 and 1.
• Between 1 and 2.
• Greater than 1.

If the percentage change in quantity demanded for bread is more than the percentage change in price of bread then the price elasticity of demand for bread is:

• Elastic.
• Inelastic.

Perfectly elastic.

Unitary elastic.

Suppose the price of meat remains constant. Which of the following will happen as a result of increase in consumer’s income?

• Supply curve of meat shifts towards left.
• Demand curve of meat shifts towards left.
• Supply curve of meat shifts towards right.
• Demand curve of meat shifts towards right.

When the cost of raw material increases then it will lead to shift in:

• Supply curve towards right.
• Supply curve towards left.
• Demand curve towards left.
• Demand curve towards right.

Which of the following is a positive statement?

• The minimum wage should not be increased, because to do so would increase unemployment.
• Smoking should be restricted on all airline flights.
• All automobile passengers should be required to wear seatbelts in order to protect them against injury.
• A decrease in price of commodity will lead to an increase in quantity demanded of that commodity.

The assumption of transitivity is violated when indifference curves_______.

• Touch X-axis
• Become parallel
• Intersect each other
• Become perpendicular

Suppose demand curve for good A has shifted to the left as a result of increase in price of good B. From this we can infer that:

• Good A is used to produce good B.
• Good B is used to produce good A.
• Goods A and B are substitutes.
• Goods A and B are complements.
• Suppose the income of consumer raises by 100 % and prices also rise by the same percentage, the budget line of the consumer will:
• Remain same.
• Shift outwards.

Shift inwards.

Rotate outer towards X-axis.

The assumption of transitivity is violated when indifference curves_______.

• Touch X-axis
• Become parallel
• Intersect each other

If prices are held constant, an increase in income will:

• Shift budget line inwards.
• Shift budget line outwards.
• Rotate budget line outer towards X-axis.
• Rotate budget line outer towards Y-axis

Since Tea and coffee are considered as substitutes, the cross price elasticity of demand for teaand coffee will be:

• Zero
• Infinity
• Positive
• Negative

Coffee and tea are considered as substitutes, if price of tea increases then it will shift:

• Demand curve for tea towards right.
• Demand curve for coffee towards right.
• Supply curve for coffee towards left.
• Demand curve for coffee towards left.

The indifference curve for left shoe and right shoe will be

• Upward sloping.
• Negatively sloped straight line.
• L-shaped.
• Verticle.

Income elasticity of demand for a superior good is always:

• Negative.

Between 0 and 1.

• Between 1 and 2.

Greater than 1.

• Aslam consumes less of a good due to increase in his income. For Aslam, this good is categorized as:

Normal.

• Giffen.
• Public.
• Inferior.

Entrepreneur gets its reward in shape of:

• Wages.
• Interest.
• Profit.
• Both Interest and profit.

When we buy a product at low price in one location and sell it at high price in another location, it is known as ________ in economics.

• Arbitrage
• Market parameter
• Consumer theory
• Price discrimination

The demand curve becomes horizontal if the price elasticity of demand is:

• Zero.
• Negative.
• Positive.
• Infinite.

bundle of thanks tariq bhai,

I think the answers "made bold" are not correct? Am I right?

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