INTRODUCTION TO ECONOMICS (ECO 401)
QUIZ # 1 (6 MAY 2014)
1.Suppose Saqib spends all his income on magazines. To get maximum level of satisfaction, the marginal utility of last dollar of income spent on magazines must be:
2. If there is increase in resource prices then supply curve will:
3. If the economy is operating at a point inside the production possi...n_________ output could be produced with available resources.
4. If Nestle Company has elastic demand for Nestle juices, then, increase in price of Nestle juices will:
5. 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
6. If government imposes a price ceiling on wheat, which of the following will occur in the market for wheat?
7. Which of the following is a characteristic of a mixed economy?
8. The minimum price that a Government sets to support a desired commodity or service in a society is known as:
9. suppose a teacher organizes a study group by reserving a meeting room, compiling study materials and attracting students. The meeting room would most likely be which of the following factors of production?
10. . suppose a teacher organizes a study group by reserving a meeting room, compiling study materials and attracting students. The meeting room would most likely be which of the following factors of production?
11. Suppose second hand television is inferior good for consumers, then due to fall in consumer’s income, the demand for second hand television will:
12. If the cross price elasticity of demand between two products is -3.5, then:
13. If the supply of a product decreases and supply curve shifts leftward, and the demand for that product simultaneously increases and demand curve shifts rightward, then equilibrium:
14. 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?
15. Suppose AKJ Company is manufacturing leather goods and has inelastic demand for leather products. In this situation, more of the tax burden would fall on:
16. If a 40% increase in the price of a product causes a 20% fall in the quantity demanded, the price elasticity of demand will be
17. If we measure consumer preferences numerically then it is commonly k nown as:
18. The demand for apples is expressed as: Qd = 80 - P The supply of apples is expressed as: Qs = 3P Refer to the above scenario, if the equilibrium price of apples is Rs. 20, the equilibrium quantity of apples is:
19.A market is said to be in equilibrium when
20. Suppose that the total utilities for the third and fourth units of a good consumed are 69 and 83, respectively. The marginal utility for the fourth unit is: