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***** ECO401 QUIZ NO.1 8MAY2014******

1) If a 2% rise in consumer’s incomes causes a 4% rise in product’s demand, the income elasticity of demand for the product will be
: Select correct option:


0.5.
1.5.
2.
2.5.

2) Asifa while addressing the young parliamentarians said that rising inflation in Pakistan was due to the high interest rates. Which category her statement falls in?


Select correct option:
Normative
Positive
Negative
None of the given options

3) When the price of computer and the number of computers purchased both rise over the course of the year. One can say:

Select correct option:

The demand for computers has increased.
The demand curve for computers must be upward-sloping.
The supply of computers has increased.
The demand curve for computers must be downward-sloping.

4) 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.

5) When railways authority raises its fares, it may experience an increase in total revenue. This suggests that demand is:


Select correct option:
Unstable.
Price inelastic.
Price elastic.
Unit price elastic.

6) Which of the following is a characteristic of a mixed economy?

Select correct option:
Resources are governed by both government and individuals.
It utilizes the characteristics of both market economy and planned economy.
People are free to make their decisions and government controls the defense.
All of the given options are true.

7) When government sets the price of a good and that price is above the equilibrium price, the result will be:

Select correct option:
A surplus of the good.
A shortage of the good.
An increase in the demand for the good.
A decrease in the supply of the good.

8) The total utility curve starts at the origin and reaches the peak when marginal utility is:

Select correct option:
Zero.
Maximum.
Negative.
Positive.

9) Suppose a teacher organizes a study group by reserving a meeting room, compiling study materials and attracting students. The students would most likely be which of the following factors of production?

Select correct option:
Labor.
Land.
Capital.
Entrepreneurship

10) Q= a – b P” represents equation of:

Select correct option:
Supply.
Demand.
Labor supply.
Budget line.

11) A Demand Curve is price inelastic when changes in demand are:

Select correct option:
Greater than zero.
Equal than those in price.
Proportionately smaller than those in price.
Proportionately greater than those in price.

12) Production possibility frontier analysis assumes that resources:


Select correct option:
Increase with production.
Are saved for emergency use.
Are used to produce thousands of goods.
Are used in a technically efficient way.

13) When the price for entry tickets for parks decrease, families tend to spend more time at parks instead at home. This best reflects:

Select correct option:

Diminishing marginal utility.
The income effect.
The rationing function of markets.
The substitution effect.

14)The law of diminishing marginal utility indicates that the demand curve is:

Select correct option:
Vertical.
U shaped.
Upward sloping.
Downward sloping.

15) If the cross price elasticity of demand between two products is +3.5, then:

Select correct option:
One of the products is expensive and one is relatively inexpensive.
One product is a normal good and the other is an inferior good.
The two products are complements.
The two products are substitutes.

16) If a good is having inelastic demand then if price rises:

Select correct option:
Quantity demanded of good rises.
Quantity supplied of good falls.
Total revenue of good rises.
Total revenue of good falls.

17) During exams, Ali is studying for two hours a day and decides to spend an extra hour for better performance. The marginal benefit is the benefit that he gets from studying:

Select correct option:

All three hours

An extra hour

Two hours

Four hours

18) Demand is elastic when the elasticity of demand is:

Select correct option:
Greater than 0.
Greater than 1.
Less than 1.
Less than 0.

19) Microeconomics is the branch of economics that deals with which of the following?

Select correct option:
Individual consumers.
Individual firms and investors.
Unemployment and interest rates.
Individual consumers, individual firms and investors.

20) Suppose the total utility derived from first four units of a good consumed are 12, 22, 32, and 42 respectively. What is the marginal utility of the third unit?

Select correct option:
10.
13.
20.
33.

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Replies to This Discussion

in k ans v das dooo

3) When the price of computer and the number of computers purchased both rise over the course of the year. One can say:
The demand for computers has increased.

7) When government sets the price of a good and that price is above the equilibrium price, the result will be:

A surplus of the good.

9) Suppose a teacher organizes a study group by reserving a meeting room, compiling study materials and attracting students. The students would most likely be which of the following factors of production?

Entrepreneurship (not sure)

 

11) A Demand Curve is price inelastic when changes in demand are:

Proportionately smaller than those in price. (not sure)

13) When the price for entry tickets for parks decrease, families tend to spend more time at parks instead at home. This best reflects:

The income effect. 

14)The law of diminishing marginal utility indicates that the demand curve is:

Downward sloping.

 

17) During exams, Ali is studying for two hours a day and decides to spend an extra hour for better performance. The marginal benefit is the benefit that he gets from studying:

An extra hour

 

19) Microeconomics is the branch of economics that deals with which of the following?

Individual consumers, individual firms and investors.

1) If a 2% rise in consumer’s incomes causes a 4% rise in product’s demand, the income elasticity of demand for the product will be

2.

 

2) Asifa while addressing the young parliamentarians said that rising inflation in Pakistan was due to the high interest rates. Which category her statement falls in?

Positive 

 

4) The effect of a change in income on the quantity of the good consumed is called the

: Select correct option:
Income effect.

 

5) When railways authority raises its fares, it may experience an increase in total revenue. This suggests that demand is:

Price inelastic. 

6) Which of the following is a characteristic of a mixed economy?

Select correct option:
Resources are governed by both government and individuals.
It utilizes the characteristics of both market economy and planned economy. 
People are free to make their decisions and government controls the defense.
All of the given options are true.

 

8) The total utility curve starts at the origin and reaches the peak when marginal utility is:

Select correct option: 
Zero.

 

10) Q= a – b P” represents equation of:

Select correct option:
Demand..

 

12) Production possibility frontier analysis assumes that resources:

Are used in a technically efficient way.

 

15) If the cross price elasticity of demand between two products is +3.5, then:

The two products are complements.

16) If a good is having inelastic demand then if price rises:

Total revenue of good rises. 

 

18) Demand is elastic when the elasticity of demand is:

Greater than 1.

 

20) Suppose the total utility derived from first four units of a good consumed are 12, 22, 32, and 42 respectively. What is the marginal utility of the third unit?
10.



1) If a 2% rise in consumer’s incomes causes a 4% rise in product’s demand, the income elasticity of demand for the product will be
: Select correct option:


0.5. 
1.5. 
2.
2.5.

2) Asifa while addressing the young parliamentarians said that rising inflation in Pakistan was due to the high interest rates. Which category her statement falls in?


Select correct option: 
Normative 
Positive 
Negative 
None of the given options

4) 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.

5) When railways authority raises its fares, it may experience an increase in total revenue. This suggests that demand is:


Select correct option:
Unstable. 
Price inelastic. 
Price elastic. 
Unit price elastic.

6) Which of the following is a characteristic of a mixed economy?

Select correct option:
Resources are governed by both government and individuals.
It utilizes the characteristics of both market economy and planned economy. 
People are free to make their decisions and government controls the defense.
All of the given options are true.

8) The total utility curve starts at the origin and reaches the peak when marginal utility is:

Select correct option: 
Zero.
Maximum.
Negative.
Positive.

10) Q= a – b P” represents equation of:

Select correct option:
Supply. 
Demand.
Labor supply. 
Budget line.

12) Production possibility frontier analysis assumes that resources:


Select correct option:
Increase with production
Are saved for emergency use.
Are used to produce thousands of goods.
Are used in a technically efficient way.

15) If the cross price elasticity of demand between two products is +3.5, then:

Select correct option: 
One of the products is expensive and one is relatively inexpensive.
One product is a normal good and the other is an inferior good. 
The two products are complements.
The two products are substitutes.

16) If a good is having inelastic demand then if price rises:

Select correct option:
Quantity demanded of good rises.
Quantity supplied of good falls.
Total revenue of good rises. 
Total revenue of good falls.

18) Demand is elastic when the elasticity of demand is:

Select correct option: 
Greater than 0. 
Greater than 1.
Less than 1. 
Less than 0.

20) Suppose the total utility derived from first four units of a good consumed are 12, 22, 32, and 42 respectively. What is the marginal utility of the third unit?

Select correct option: 
10.
13.
20.
33.

1) If a 2% rise in consumer’s incomes causes a 4% rise in product’s demand, the income elasticity of demand for the product will be

2.

 

2) Asifa while addressing the young parliamentarians said that rising inflation in Pakistan was due to the high interest rates. Which category her statement falls in?

Positive 

 

4) The effect of a change in income on the quantity of the good consumed is called the

: Select correct option:
Income effect.

 

5) When railways authority raises its fares, it may experience an increase in total revenue. This suggests that demand is:

Price inelastic. 

6) Which of the following is a characteristic of a mixed economy?

Select correct option:
Resources are governed by both government and individuals.
It utilizes the characteristics of both market economy and planned economy. 
People are free to make their decisions and government controls the defense.
All of the given options are true.

 

8) The total utility curve starts at the origin and reaches the peak when marginal utility is:

Select correct option: 
Zero.

 

10) Q= a – b P” represents equation of:

Select correct option:
Demand..

 

12) Production possibility frontier analysis assumes that resources:

Are used in a technically efficient way.

 

15) If the cross price elasticity of demand between two products is +3.5, then:

The two products are complements.

16) If a good is having inelastic demand then if price rises:

Total revenue of good rises. 

 

18) Demand is elastic when the elasticity of demand is:

Greater than 1.

 

20) Suppose the total utility derived from first four units of a good consumed are 12, 22, 32, and 42 respectively. What is the marginal utility of the third unit?
10.

ECO401 CURRENT QUIZ
1)- The demand curve for eggs is downward-sloping. Suddenly the price of eggs increases from Rs.80/- per dozen to Rs.100/- per dozen. This will cause:
2)- If a good is having inelastic demand then if price rises:
3)- The principle economic difference between a competitive and a non-competitive market is: 
4)- Since more substitutes of Pepsi are available in the market like Coca Cola, Sprite etc., the demand for Pepsi is said to be __________ in response to change in price.
5)- There will be excess supply in the market due to:
6)- A point on a nation’s production possibility frontier shows:
7)- If Nestle Company has elastic demand for Nestle juices, then increase in price of Nestle juices will:
8)- If the cost of parts of automobiles falls, then:
9)- Mohsin Malik has been updated by his partner that this month Rs. 65,000 have been paid to acquire new machinery directly needed to match the rising demand. Which of the following they have paid for?
10)- Assume that the current market price is above the market clearing level. We would expect:
11)- ABC Company is running a business of car manufacturing and finds sharp increase in prices of spare parts which in turn increases cost of manufacturing cars. This increase in cost of production will:
12)- Suppose a teacher organizes a study group by reserving a meeting room, compiling study materials and attracting students. The students would most likely be which of the following factors of production?
13)- The study of economics basically focuses on: 
14)- When we study market equilibrium, the primary influencing variable on production and purchasing decisions is:
15)- The percentage change in quantity demanded of a given good, with respect to the percentage change in the price of “another” good is called:
16)- The effect of a change in income on the quantity of the good consumed is called the:
17)- The production possibility frontier (PPF) shows all combinations of goods that: 
18)- A rational person does not act unless:
19)- Rabia decides to look after her baby at home rather than going out with her friends in a park. His dilemma is an example of:

Please all students related this subject Share your online Quizzes here to help each other.thanks

 

Please share the question and their answers of this quiz if anyone has done.
Thanks. 

Question # 4 of 15 ( Start time: 05:30:28 PM )

Total Marks: 1

In which market structure do firms exist in very large numbers, each firm produces an identical product and there is freedom of entry and exit?

Select correct option:

 

Monopoly

Oligopoly

Perfect competition

Monopolistic competition

Question # 5 of 15 ( Start time: 05:31:05 PM )

Total Marks: 1

If your demand price for one unit of a good is $100 and the market price is $75, your consumer's surplus is:

Select correct option:

 

$25

$50

$75

"Giffen good" is defined as one for which:

Select correct option:

 

Marginal utility is zero.

The demand curve is perfectly elastic.

curve slopes downward for both Keynes and classicals.

Select correct option:

 

True

 

Question # 8 of 15 ( Start time: 05:33:02 PM )

Total Marks: 1

If there is a price ceiling, there will be:

Select correct option:

 

Shortages

Surpluses

Equilibrium

If the total product of labor per day is as shown in the chart below and the price of the product is $10/unit, what is the value of the marginal product (VMPL) of the 5th worker? Labor Total output 1 10 2 25 3 35 4 40 5 41

Select correct option:

 

5

10

50

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.

A partial explanation for the inverse relationship between price and quantity demanded is that a:

Select correct option:

 

Lower price shifts the supply curve to the left

Higher price shifts the demand

A monopolistically competitive firm in short run equilibrium:

Select correct option:

 

Will make negative profit (lose money).

An important difference between the approaches of the classical and Keynesian economists use to achieve a macroeconomic equilibrium is that:

Select correct option:

 

Keynesian economists actively promote the use of fiscal policy; the classical economists do not

Keynesian economists actively promote the use of monetary policy to improve aggregate economic performance; classical economists do not

classical economists believe

Which of the following statements describes the presence of diminishing returns.

Select correct option:

 

The marginal product of a factor is positive and rising.

The marginal product of a factor is positive but falling.

Cartels are:

Select correct option:

 

Organizations of independent firms, producing similar products, that work together to raise prices and restrict output

Organizations

 

Check Attached File For Quiz ECO401

Attachments:

Quiz #1

Attachments:

 Fahad Nabeel  gud keep it up & thanks for sharing 

Another Quiz #1

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