Eco 401 New Quiz 5

 

Question # 15 of 15 ( Start time: 01:20:42 AM )           Total Marks: 1

In the kinked demand curve model, if one firm reduces its price: 

Select correct option:

            Other firms will also reduce their price

            Other firms will compete on a non-price basis

            Other firms will raise their price

            Both (a) and (b) are correct

Question # 14 of 15 ( Start time: 01:20:21 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 # 13 of 15 ( Start time: 01:19:51 AM )           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 # 12 of 15 ( Start time: 01:19:18 AM )           Total Marks: 1

From year 2002 to year 2003, personal income rose by $500 billion. If the Marginal Propensity to Consume = 0.9, then personal consumption expenditures rose by:

Select correct option:

            $45.0 billion.

            $500 billion.

            $450 billion.

            $50 billion.

Question # 11 of 15 ( Start time: 01:19:00 AM )           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

            Your monthly consumption of hamburgers

            The number of hamburgers in your refrigerator at the beginning of the month

Question # 10 of 15 ( Start time: 01:18:39 AM )           Total Marks: 1

According to Classical models, the level of employment is determined primarily by:

Select correct option:

            The level of aggregate demand for goods and services.

            Prices and wages.

            Government taxation.

            Government spending.

Question # 9 of 15 ( Start time: 01:18:00 AM )             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

            Demand

            Quantity supplied

            Quantity demanded

The slope of the saving function (or line) is the:

Select correct option:

            Average propensity to save.

            Average propensity to consume.

            Marginal propensity to save.

            Marginal propensity to consume.

Question # 7 of 15 ( Start time: 01:16:52 AM )             Total Marks: 1

In a macroeconomic model, without foreign trade or government spending, aggregate demand is the sum of:

Select correct option:

            Personal saving and private investment.

            Personal saving and personal consumption.

            Personal consumption and personal income.

            Personal consumption and private investment.

Question # 6 of 15 ( Start time: 01:16:20 AM )             Total Marks: 1

Potential GDP is an estimate of the economy’s ability to produce goods and services if: 

Select correct option:

            Labor force is fully employed.

            Price level is stable.

            Trade balance is zero.

            Federal budget is balanced.

Question # 5 of 15 ( Start time: 01:15:47 AM )             Total Marks: 1

In Keynesian economics, an inflationary gap results if:

Select correct option:

            Aggregate expenditures are less than aggregate production.

            Aggregate expenditures are greater than aggregate production.

            Aggregate expenditures are equal to aggregate production.

            There are no changes in inventories.

Question # 4 of 15 ( Start time: 01:15:28 AM )             Total Marks: 1

In the long run, competitive firms MUST be profit maximizes, because if they do not maximize profits:

Select correct option:

            They will attract new competitors.

            They will not be price takers.

            The profits that they do earn will only cover variable costs.

            They will not survive.

Question # 3 of 15 ( Start time: 01:15:04 AM )             Total Marks: 1

The market structure in which there is interdependence among firms is:

Select correct option:

            Monopolistic competition.

            Oligopoly.

            Perfect competition.

            Monopoly.

Question # 2 of 15 ( Start time: 01:14:30 AM )             Total Marks: 1

In which case, total expenditure in an economy is not equal to total income? 

Select correct option:

            If total saving is larger than total investment.

            If net exports are not zero.

            If inventory investment is negative.

            None of the given options--they are always equal.

Question # 1 of 15 ( Start time: 01:14:06 AM )             Total Marks: 1

According to the classical economists, those who are not working:

Select correct option:

            Are unable to find a job at the current wage rate.

            Are too productive to be hired at the current wage.

            Have choosen not to work at the market wage.

            Have given up looking for a job, but would accept a job at the current wage if one were offered to them.

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