ECO401 New Quiz # 4

 

Question # 15 of 15 ( Start time: 01:34:26 AM )               Total Marks: 1

Assume 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.

                Shifts to the right initially and then returns to its original position.

Question # 14 of 15 ( Start time: 01:33:12 AM )               Total Marks: 1

Many economists and government analysts have investigated the effect of a minimum wage on labour markets. The general conclusion reached by the investigators is that:

Select correct option:

                The overall effect of the minimum wage is an increase in the unemployment level.

                Teenagers gain most of the beneficial employment effects of the minimum wage.

                All industries are equally affected by the minimum wage laws.vunew.blogspot.com.

                Over a period of time, the minimum wage laws will increase employment in the economy.

Question # 13 of 15 ( Start time: 01:32:54 AM )               Total Marks: 1

The substitution effect of a price decrease for a good with a normal indifference curve pattern:

Select correct option:

                Is always inversely related to the price change .

                Measures the change in consumption of the good that is due to the consumer’s feeling of being richer.

                Is measured by the horizontal distance between the original and the new indifference curves.

                Is sufficient information to plot an ordinary demand curve for the commodity being considered.

Question # 12 of 15 ( Start time: 01:32:39 AM )               Total Marks: 1

For a firm buying labor competitively, the marginal input cost is equal to the: 

Select correct option:

                Wage

                Interest rate

                Price of output

                cost of raw materials

Question # 11 of 15 ( Start time: 01:32:21 AM )               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 # 10 of 15 ( Start time: 01:30:59 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.vunew.blogspot.com

                If inventory investment is negative.

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

Question # 9 of 15 ( Start time: 01:30:04 AM )                 Total Marks: 1

Marginal Cost is defined as:

Select correct option:

                The derivative of variable cost with respect to quantity produced.

                The derivative of Average Cost with respect to quantity produced.

                The derivative of Total Cost with respect to quantity produced.

                None of the given option.

Question # 8 of 15 ( Start time: 01:29:29 AM )                 Total Marks: 1

If a monopolist sets his output such that marginal revenue, marginal cost and average total cost are equal, economic profit must be:

Select correct option:

                Negative.

                Positive.

                Zero.

                Indeterminate from the given information.

Question # 7 of 15 ( Start time: 01:28:21 AM )                 Total Marks: 1

International data suggest that economies of countries with different steady states will converge to:

Select correct option:

                The same steady state.

                Their own steady state.

                The Golden Rule steady state.

                Steady states below the Golden Rule level.

Question # 6 of 15 ( Start time: 01:28:04 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 # 5 of 15 ( Start time: 01:27:44 AM )                 Total Marks: 1

The price elasticity of supply shows us:

Select correct option:

                How steep the supply curve is

                How fast supply responds to price

                How much supply shifts when income changes

                How much quantity supplied responds to price changes

Question # 4 of 15 ( Start time: 01:26:28 AM )                 Total Marks: 1

Which of the following international accounts records the purchase and sale of financial assets and real estate between Pakistan and other nations?

Select correct option:

                The savings account.

                The current account.

                The capital account.

                The financial account.

Question # 3 of 15 ( Start time: 01:25:06 AM )                 Total Marks: 1

An exchange rate that varies according to the supply and demand for the currency in the foreign exchange market is called a(n) _________ exchange rate. 

Select correct option:

                Overvalued.

                Undervalued.

                Fixed.

                Flexible.

Question # 2 of 15 ( Start time: 01:24:43 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 # 1 of 15 ( Start time: 01:24:20 AM )                 Total Marks: 1

Suppose price rises from $15 to $17 and quantity demanded decreases by 20%. We can conclude: 

Select correct option:

                Demand is inelastic

                The elasticity of demand is 2

                Total revenue will decrease

                Demand is unit elastic

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