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 # 2 of 10 ( Start time: 07:22:24 PM ) Total Marks: 1
Which of the following can be thought of as a barrier to entry?
Select correct option:
Scale economies.
Patents.
Strategic actions by incumbent firms.
All of the given options are true.
Question # 3 of 10 ( Start time: 07:23:12 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 10 ( Start time: 07:24:20 PM ) 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 # 5 of 10 ( Start time: 07:24:54 PM ) Total Marks: 1
The extra value that consumers receive above what they pay for that good is called:
Select correct option:
Producer surplus
Utility
Marginal utility
Consumer surplus
Question # 6 of 10 ( Start time: 07:25:17 PM ) Total Marks: 1
The point at which AC intersects MC is where:
Select correct option:
AC is decreasing.
MC is at its minimum.
AC is at its minimum.
AC is at its maximum.
Question # 7 of 10 ( Start time: 07:26:48 PM ) 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 # 8 of 10 ( Start time: 07:27:38 PM ) Total Marks: 1
What happens in the market for airline travel when the price of traveling by rail decreases?
Select correct option:
The demand curve shifts left.
The demand curve shifts right.
The supply curve shifts left.
The supply curve shifts right.
Question # 9 of 10 ( Start time: 07:28:36 PM ) Total Marks: 1
Indifference curves that are convex to the origin reflect:
Select correct option:
An increasing marginal rate of substitution.
A decreasing marginal rate of substitution.
A constant marginal rate of substitution.
A marginal rate of substitution that first decreases, then increases.
Question # 10 of 10 ( Start time: 07:29:11 PM ) Total Marks: 1
If diminishing marginal utility holds, and a person consumes less of a good, then all else being equal:
Select correct option:
The price of the good will rise.
Marginal utility will rise
Expenditure on the good will increase
Marginal utility will decline
Other Quiz
ECO401 – Economics
Online Quiz # 2
December 29, 2009
Question # 1 of 10 ( Start time: 10:19:18 PM ) Total Marks: 1
The cross elasticity of demand of complements goods is:
Select correct option:
Less than 0.
Equal to 0.
Greater than 0.
Between 0 and 1.
Question # 2 of 10 ( Start time: 10:20:47 PM ) Total Marks: 1
The oligopoly model that predicts that oligopoly prices will tend to be very rigid is the ______________ model.
Select correct option:
Cournot
Stackelberg
Dminant firm
kinked demand
Question # 3 of 10 ( Start time: 10:21:48 PM ) Total Marks: 1
The law of diminishing marginal utility states:
Select correct option:
The supply curve slopes upward.
Your utility grows at a slower and slower rate as you consume more and more units of a good.
The elasticity of demand is infinite.
None of the given options.
Question # 4 of 10 ( Start time: 10:23:02 PM ) 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.
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 # 5 of 10 ( Start time: 10:23:15 PM ) Total Marks: 1
The point at which AC intersects MC is where:
Select correct option:
AC is decreasing.
MC is at its minimum.
AC is at its minimum.
AC is at its maximum.
Reference: BCom Text book written by Mr. Sohail Akhtar.
The point at which AC intersects MC is where:
Select correct option:
AC is decreasing.
MC is at its minimum.
AC is at its minimum.
AC is at its maximum.
Reference: BCom Text book written by Mr. Sohail Akhtar.
It says, "At a minimum point of ATC (Average total cost) curve, MC curve intersects ATC curve from below, that is when ATC is minimum, MC is equal to ATC"
Question # 6 of 10 ( Start time: 10:23:39 PM ) Total Marks: 1
Which of the following can be thought of as a barrier to entry?
Select correct option:
Scale economies.
Patents.
Strategic actions by incumbent firms.
All of the given options are true.
Question # 7 of 10 ( Start time: 10:24:53 PM ) Total Marks: 1
If marginal product is equal to average product:
Select correct option:
The total product will fall
The average product will not change
Average variable costs will fall
Total revenue will fall
Question # 8 of 10 ( Start time: 10:26:13 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 # 9 of 10 ( Start time: 10:27:28 PM ) Total Marks: 1
If marginal product is above the average product:
Select correct option:
The total product will fall
The average product will rise
Average variable costs will fall
Total revenue will fall
Question # 10 of 10 ( Start time: 10:28:02 PM ) Total Marks: 1
In a production process, all inputs are increased by 10%; but output increases more than 10%. This means that the firm experiences:
Select correct option:
Decreasing returns to scale.
Constant returns to scale.
Increasing returns to scale.
Negative returns to scale.
Which of the following can be thought of as a barrier to entry?
Select correct option:
Scale economies.
Patents.
Strategic actions by incumbent firms.
All of the given options are true.
Question # 7 of 10 ( Start time: 10:24:53 PM ) Total Marks: 1
If marginal product is equal to average product:
Select correct option:
The total product will fall
The average product will not change
Average variable costs will fall
Total revenue will fall
Question # 8 of 10 ( Start time: 10:26:13 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 # 9 of 10 ( Start time: 10:27:28 PM ) Total Marks: 1
If marginal product is above the average product:
Select correct option:
The total product will fall
The average product will rise
Average variable costs will fall
Total revenue will fall
Question # 10 of 10 ( Start time: 10:28:02 PM ) Total Marks: 1
In a production process, all inputs are increased by 10%; but output increases more than 10%. This means that the firm experiences:
Select correct option:
Decreasing returns to scale.
Constant returns to scale.
Increasing returns to scale.
Negative returns to scale.
Other Quiz
ECO401 – Economics
Online Quiz # 2
December 30, 2009
Question # 1 of 10 ( Start time: 01:14:57 AM ) Total Marks: 1
Demand is elastic when the elasticity of demand is:
Select correct option:
Greater than 0
Greater than 1
Less than 1
Less than 0
Question # 2 of 10 ( Start time: 01:15:53 AM ) Total Marks: 1
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
(not sure, I selected option # 1, kindly verify it)
Question # 3 of 10 ( Start time: 01:17:10 AM ) 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 # 4 of 10 ( Start time: 01:18:12 AM ) 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 # 5 of 10 ( Start time: 01:19:13 AM ) Total Marks: 1
In a production process, all inputs are increased by 10%; but output increases more than 10%. This means that the firm experiences:
Select correct option:
Decreasing returns to scale.
Constant returns to scale.
Increasing returns to scale.
Negative returns to scale.
Question # 6 of 10 ( Start time: 01:20:18 AM ) Total Marks: 1
An individual whose attitude toward risk is illustrated:
Select correct option:
Risk averse.
Risk loving.
Risk neutral.
None of the given is necessarily correct.
Question # 7 of 10 ( Start time: 01:21:21 AM ) Total Marks: 1
If a decrease in price increases total revenue:
Select correct option:
Demand is elastic
Demand is inelastic
Supply is elastic
Supply is inelastic
An individual whose attitude toward risk is illustrated:
Select correct option:
Risk averse.
Risk loving.
Risk neutral.
None of the given is necessarily correct.
Question # 7 of 10 ( Start time: 01:21:21 AM ) Total Marks: 1
If a decrease in price increases total revenue:
Select correct option:
Demand is elastic
Demand is inelastic
Supply is elastic
Supply is inelastic
Question # 8 of 10 ( Start time: 01:22:05 AM ) Total Marks: 1
A self-employed accountant spends a lot of money identifying clients and advertising her services. These activities are an example of:
Select correct option:
External costs
Transaction costs
Fixed inputs
Marginal returns
Question # 9 of 10 ( Start time: 01:23:00 AM ) Total Marks: 1
If the income elasticity of demand for boots is 0.2, a 10% increase in consumer income will lead to a:
Select correct option:
20 percent increase in the quantity of boots demanded
20 percent decrease in the quantity of boots demanded
2 percent increase in the quantity of boots demanded
0.2 percent increase in the quantity of boots demanded
Question # 10 of 10 ( Start time: 01:24:11 AM ) Total Marks: 1
If there is a price ceiling, there will be:
Select correct option:
Shortages
Surpluses
Equilibrium
None of the given options.
A self-employed accountant spends a lot of money identifying clients and advertising her services. These activities are an example of:
Select correct option:
External costs
Transaction costs
Fixed inputs
Marginal returns
Question # 9 of 10 ( Start time: 01:23:00 AM ) Total Marks: 1
If the income elasticity of demand for boots is 0.2, a 10% increase in consumer income will lead to a:
Select correct option:
20 percent increase in the quantity of boots demanded
20 percent decrease in the quantity of boots demanded
2 percent increase in the quantity of boots demanded
0.2 percent increase in the quantity of boots demanded
Question # 10 of 10 ( Start time: 01:24:11 AM ) Total Marks: 1
If there is a price ceiling, there will be:
Select correct option:
Shortages
Surpluses
Equilibrium
None of the given options.
Other Quiz
ECO401 – Economics
Online Quiz # 2
December 30, 2009
Question # 1 of 10 ( Start time: 02:57:52 AM ) Total Marks: 1
Due to capacity constraints, the price elasticity of supply for most products is:
Select correct option:
The same in the long run and the short run.
Greater in the long run than in the short run.
Greater in the short run than in the long run.
Too uncertain to be estimated.
Question # 2 of 10 ( Start time: 02:59:08 AM ) Total Marks: 1
If consumer incomes increase, the demand for product Y:
Select correct option:
Will necessarily remain unchanged
Will shift to the right if Y is a complementary good
Will shift to the right if Y is a normal good
Will shift to the right if Y is an inferior good
Question # 3 of 10 ( Start time: 02:59:38 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 # 4 of 10 ( Start time: 03:00:07 AM ) 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 10 ( Start time: 03:01:11 AM )
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.
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 10 ( Start time: 03:01:11 AM )
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 # 6 of 10 ( Start time: 03:02:10 AM ) 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 # 7 of 10 ( Start time: 03:03:07 AM ) Total Marks: 1
A market with few entry barriers and with many firms that sell differentiated products is known as:
Select correct option:
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 # 7 of 10 ( Start time: 03:03:07 AM ) Total Marks: 1
A market with few entry barriers and with many firms that sell differentiated products is known as:
Select correct option:
Purely competitive
A monopoly
Monopolistically competitive
Oligopolistic
Question # 8 of 10 ( Start time: 03:04:20 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.
By consumer preferences.
The level of profits of firms.
Question # 9 of 10 ( Start time: 03:04:42 AM ) Total Marks: 1
If marginal product is equal to average product:
Select correct option:
The total product will fall
The average product will not change
Average variable costs will fall
Total revenue will fall
Question # 10 of 10 ( Start time: 03:05:54 AM ) Total Marks: 1
A negatively sloped isoquant implies:
Select correct option:
Products with negative marginal utilities.
Products with positive marginal utilities.
Inputs with negative marginal products.
Inputs with positive marginal products.
Monopolistically competitive
Oligopolistic
Question # 8 of 10 ( Start time: 03:04:20 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.
By consumer preferences.
The level of profits of firms.
Question # 9 of 10 ( Start time: 03:04:42 AM ) Total Marks: 1
If marginal product is equal to average product:
Select correct option:
The total product will fall
The average product will not change
Average variable costs will fall
Total revenue will fall
Question # 10 of 10 ( Start time: 03:05:54 AM ) Total Marks: 1
A negatively sloped isoquant implies:
Select correct option:
Products with negative marginal utilities.
Products with positive marginal utilities.
Inputs with negative marginal products.
Inputs with positive marginal products.
Thanks to those students those send me Assignments and quizzes. If you have any Assignment and quiz kindly send at jamilbookcenter@yahoo.com
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