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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Eco 401 Quiz # 5

ECO401 – Economics

Online Quiz # 5

February 16, 2010

Total questions: 15

Question # 1 of 15 ( Start time: 06:43:49 PM )      Total Marks: 1

Which of the following statements describes increasing returns to scale:

Select correct option:

            Doubling the inputs used leads to double the output.

            Increasing the inputs by 50% leads to a 25% increase in output.

            Increasing inputs by 1/4 leads to an increase in output of 1/3.

            None of the given options.

Question # 2 of 15 ( Start time: 06:44:19 PM )      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.

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

Question # 3 of 15 ( Start time: 06:45:37 PM )      Total Marks: 1

An economist will define the exchange rate between two currencies as the:

Select correct option:

            Amount of one currency that must be paid in order to obtain one unit of another currency.

            Difference between total exports and total imports within a country.

            Price at which the sales and purchases of foreign goods takes place.

            Ratio of import prices to export prices for a particular country.

Question # 4 of 15 ( Start time: 06:47:03 PM )      Total Marks: 1

The kinked demand curve model is based on the assumption that each firm:

Select correct option:

            Considers its rival's output to be fixed

            Considers its rival's price to be fixed

            Believes rivals will match all price changes

            None of the given options

Question # 5 of 15 ( Start time: 06:48:26 PM )      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 # 6 of 15 ( Start time: 06:49:40 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 # 7 of 15 ( Start time: 06:50:39 PM )      Total Marks: 1

Which of the following is the Fisher Equation of Exchange?

Select correct option:

            MT=PV.

            VT=PM.

            MV=PQ.

            MY=VP.

Question # 8 of 15 ( Start time: 06:52:02 PM )      Total Marks: 1

Which of the following is NOT an account in the balance of payments?

Select correct option:

            Capital account.

            Financial account.

            Current account.

            Future account.

Question # 9 of 15 ( Start time: 06:52:49 PM )      Total Marks: 1

The economics news on the television reports that the dollar has strengthened relative to the Japanese yen. This means that:

Select correct option:

            The dollar can now purchase more yen.

            The US trade balance with the Japanese economy has improved.

            The yen can now purchase more dollars.

            The dollar has depreciated relative to the yen.

Question # 10 of 15 ( Start time: 06:54:00 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 # 11 of 15 ( Start time: 06:55:25 PM )    Total Marks: 1

A government wishing to reduce a deficit on the current account of their balance of payments through the use of fiscal policy would be most likely to:

Select correct option:

            Raise direct taxation.

            Introduce an import quota.

            Reduce the rate of value added tax on all goods and services.

            Raise interest rates.

Question # 12 of 15 ( Start time: 06:56:47 PM )    Total Marks: 1

Under New Classical macroeconomics monetary policy:

Select correct option:

            Affects the level of equilibrium output

            Affects the composition of equilibrium output

            Affects both the level and composition of equilibrium output

            None of the given options

Question # 13 of 15 ( Start time: 06:58:13 PM )    Total Marks: 1

The relationship between consumer spending and income is known as the:

Select correct option:

            45-degree line.

            Consumption function.

            Investment function.

            Consumer price index.

Question # 14 of 15 ( Start time: 06:59:14 PM )    Total Marks: 1

In the Keynesian cross model, the 45-degree line has a slope of:

Select correct option:

            1.

            0.

            45.

            Infinity.

Question # 15 of 15 ( Start time: 07:00:19 PM )    Total Marks: 1

If disposable income increases from $5 trillion to $6 trillion and, as a result, consumption expenditure increases from $7 trillion to $7.8 trillion, the Marginal Propensity to Consume is:

Select correct option:

            1.0.

            0.8.

            5/7 = 0.71.

            6/7.8 = 0.77.

Thanks to those students those send me Assignments and quizzes. If you have any Assignment and quiz kindly send at jamilbookcenter@yahoo.com

Eco 401 Another Quiz

ECO401 – Economics

Online Quiz # 5

February 15, 2010

Total questions: 15

Question # 1 of 15 ( Start time: 09:05:50 PM )      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 # 2 of 15 ( Start time: 09:06:10 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.

(not 100% sure, but according to me option # 3 is correct)

Question # 3 of 15 ( Start time: 09:07:32 PM )      Total Marks: 1

More output could be produced with available resources if:

Select correct option:

            Resources are allocated efficiently

            Resources are imperfectly shiftable among alternative uses

            Prices are reduced

            The economy is operating at a point inside the production possibilities curve.

Question # 4 of 15 ( Start time: 09:08:28 PM )      Total Marks: 1

Final goods are meant for:

Select correct option:

            Direct use by the consumers

            further processing

            The term do not exist

            None

Question # 5 of 15 ( Start time: 09:08:42 PM )      Total Marks: 1

The marginal rate of substitution is equal to the:

Select correct option:

            Magnitude of the slope of the indifference curve

            Relative price

            Marginal cost of each good

            Slope of the budget line

Question # 7 of 15 ( Start time: 09:10:49 PM )      Total Marks: 1

Monopolistically competitive firms have monopoly power because they:

Select correct option:

            Face downward sloping demand curves.

            Are great in number.

            Have freedom of entry.

            Are free to advertise.

Question # 8 of 15 ( Start time: 09:11:44 PM )      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 # 9 of 15 ( Start time: 09:13:01 PM )      Total Marks: 1

The figure that results when goods imports are subtracted from goods exports is:

Select correct option:

            The capital account balance.

            The balance of trade.

            Always greater than zero.

            Always less than zero.

Question # 10 of 15 ( Start time: 09:13:53 PM )    Total Marks: 1

In the United States, the M1 money supply consists of:

Select correct option:

            Paper currency and coins.

            Paper currency, coins and check- writing deposits.

            Paper currency, coins, check- writing deposits and savings deposits.

            Paper currency, coins, check- writing deposits, savings deposits and certificates of deposits.

Question # 11 of 15 ( Start time: 09:15:18 PM )    Total Marks: 1

When the price of petrol rises 10%, the quantity of petrol purchased falls by 8%. The demand for petrol is:

Select correct option:

            Perfectly elastic

            Unit elastic

            Elastic

            Inelastic

Question # 12 of 15 ( Start time: 09:16:29 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 # 13 of 15 ( Start time: 09:16:46 PM )    Total Marks: 1

Suppose that a farmer grows wheat and sells it to a baker for $1, the baker makes bread and sells it to a store for $2, and the store sells it to the customer for $3. This transaction increases GDP by:

Select correct option:

            $1.

            $2.

            $3.

            $6.

Question # 14 of 15 ( Start time: 09:17:58 PM )    Total Marks: 1

The concept of a risk premium applies to a person that is:

Select correct option:

            Risk averse

            Risk neutral

            Risk loving

            All of the given options

Question # 15 of 15 ( Start time: 09:18:57 PM )    Total Marks: 1

''Capital widening'' means:

Select correct option:

            More capital and more labour, but with the same amount of capital per unit of labour.

            More capital per unit of labour.

            Increasing the usage of existing capital.

            Importing capital from the developed world.

Thanks to those students those send me Assignments and quizzes. If you have any Assignment and quiz kindly send at jamilbookcenter@yahoo.com

ECO401 Quiz # 5

ECO401 – Economics

Online Quiz # 5

February 15, 2010

Total questions: 15

Question # 1 of 15 ( Start time: 09:37:50 PM )      Total Marks: 1

Economic activity moves from a trough into a period of _______until it reaches a _____ and then into a period of _______.

Select correct option:

            Expansion; trough; recession.

            Recession; trough; expansion.

            Expansion; peak; recession.

            Recession; peak; expansion.

Question # 2 of 15 ( Start time: 09:39:03 PM )      Total Marks: 1

If a Japanese radio priced at 2,000 yen can be purchased for $10, the exchange rate is:

Select correct option:

            200 yen per dollar.

            20 yen per dollar.

            20 dollars per yen.

            None of the given options.

Question # 3 of 15 ( Start time: 09:39:58 PM )      Total Marks: 1

A tax on the accounting profits of corporations is known as:

Select correct option:

            Sales tax.

            Excise tax.

            Corporate income tax.

            Personal income tax.

Question # 4 of 15 ( Start time: 09:41:10 PM )      Total Marks: 1

Which of the following statements describes increasing returns to scale:

Select correct option:

            Doubling the inputs used leads to double the output.

            Increasing the inputs by 50% leads to a 25% increase in output.

            Increasing inputs by 1/4 leads to an increase in output of 1/3.

            None of the given options.

Question # 5 of 15 ( Start time: 09:41:54 PM )      Total Marks: 1

An individual with a constant marginal utility of income will be:

Select correct option:

            Risk averse.

            Risk neutral.

            Risk loving.

            Insufficient information for a decision.

Question # 6 of 15 ( Start time: 09:43:09 PM )      Total Marks: 1

A group of modern economists who believe that markets clear very rapidly and that expanding the money supply will always increase prices rather than employment are the:

Select correct option:

            Keynesians

            Monetarists

            New Classical school

            Post-Keynesians

Question # 7 of 15 ( Start time: 09:44:29 PM )      Total Marks: 1

Real GDP:

Select correct option:

            Is nominal GDP adjusted for changes in the price level.

            Is also called nominal GDP.

            Measures GDP minus depreciation of capital.

            Will always change when prices change.

Question # 8 of 15 ( Start time: 09:44:58 PM )      Total Marks: 1

In the equation MV = PQ, according to the crude quantity theory of money:

Select correct option:

            M has no effect on the price level.

            V is the number of times each dollar is spent per year.

            Q is the real price level.

            P rises as V falls, other things constant.

Question # 9 of 15 ( Start time: 09:46:23 PM )      Total Marks: 1

Which one of the following is most likely to lead to an increase in aggregate demand? An increase in:

Select correct option:

            Government tax revenues

            Household savings

            Business capital investment

            Demand for imports

Question # 10 of 15 ( Start time: 09:46:53 PM )    Total Marks: 1

When the demand curve is downward sloping, marginal revenue is:

Select correct option:

            Equal to price.

            Equal to average cost.

            Less than price.

            More than price.

Question # 11 of 15 ( Start time: 09:47:59 PM )    Total Marks: 1

Which of the following is not an assumption of ordinal utility analysis?

Select correct option:

            Consumers are consistent in their preference.

            Consumers can measure the total utility received from any given basket of good.

            Consumers are non-satiated with respect to the goods they confront.

            All are necessary.

Question # 12 of 15 ( Start time: 09:49:22 PM )    Total Marks: 1

To make the equation of exchange into the quantity theory of money:

Select correct option:

            V and Q are assumed to be constant.

            The money supply is assumed to be produced by the banking system and not exclusively in currency.

            The quantity of money is assumed to determine the amount of Real GDP.

            M and P are considered constant.

Question # 13 of 15 ( Start time: 09:50:44 PM )    Total Marks: 1

The marginal rate of substitution is equal to the:

Select correct option:

            Magnitude of the slope of the indifference curve

            Relative price

            Marginal cost of each good

            Slope of the budget line

Question # 14 of 15 ( Start time: 09:51:07 PM )    Total Marks: 1

The investment demand curve shows the relationship between the levels of:

Select correct option:

            Investment and consumption.

            Consumption and interest rate.

            Investment and interest rate.

            Investment and saving.

Question # 15 of 15 ( Start time: 09:51:46 PM )    Total Marks: 1

According to economy is always at full employment level. Economy would automatically find the new equilibrium in the short run.

Select correct option:

            True

            False

Thanks to those students those send me Assignments and quizzes. If you have any Assignment and quiz kindly send at jamilbookcenter@yahoo.com

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

NOTE: - These Assignments OR Quiz are just for idea, so kindly don't copy it, after viewing it make your own. Thanks


We always try our best to upload 100% correct solution BUT it is requested that you kindly review it before submission, please BEST OF LUCK,


Thanks to those students those send me Assignments and quizzes. If you have any Assignment and quiz kindly send at jamilbookcenter@yahoo.com