ECO401 Quiz No.1 Shared by Ahmad

Question # 1 of 20 ( Start time: 03:11:23 PM ) Total Marks: 1
Consider two commodities X and Y. If the cross-price elasticity of demand is positive, it means the goods are:
Select correct option:
Independent.
Complements.
Substitutes.
Inferior.


Question # 2 of 20 ( Start time: 03:12:47 PM ) Total Marks: 1
The price elasticity of demand measures the responsiveness of quantity demanded to:
Select correct option:
Quantity demanded.
Quantity supplied.
Price.
Output.


Question # 3 of 20 ( Start time: 03:13:39 PM ) Total Marks: 1
A rational person does not act unless:
Select correct option:
The action is ethical.
Marginal costs of an action exceed marginal benefits.
Marginal benefits of an action exceed marginal costs.
The action makes money for the person.


Question # 4 of 20 ( Start time: 03:15:08 PM ) Total Marks: 1
There will be excess supply in the market due to:
Select correct option:
Price ceiling.
Price rationing.
Price floor
All of the given options.


Question # 5 of 20 ( Start time: 03:16:53 PM ) Total Marks: 1
Which of the following defines the opportunity cost?
Select correct option:
Cost measured only in rupees.
Cost of producing the goods.
Cost of producing one more unit of good.
Cost of next best alternative forgone.


Question # 6 of 20 ( Start time: 03:18:24 PM ) Total Marks: 1
Which of the following factors would shift the demand curve for beef to the left?
Select correct option:
Increase in consumer’s income
Fall in prices of chicken
Shortage of beef
Rise in prices of mutton


Question # 7 of 20 ( Start time: 03:20:08 PM ) Total Marks: 1
“In order to produce additional units of a particular good, it is necessary for society to sacrifice increasingly larger amounts of alternative goods”. It is the statement of law of:
Select correct option:
Constant opportunity cost.
Decreasing opportunity cost.
Increasing opportunity cost.
Diminishing marginal returns.



Question # 8 of 20 ( Start time: 03:21:40 PM ) Total Marks: 1
If the income elasticity of demand for bread is 0.4, a 10% increase in consumer income will lead to a _____________ in the quantity of bread demanded.
Select correct option:
40% increase
40% decrease
4% increase
0.4% increase


Question # 9 of 20 ( Start time: 03:23:26 PM ) Total Marks: 1
When government sets the price of a good less than the equilibrium price of a good, then there will be:
Select correct option:
Surplus of the good.
Shortage of the good.
An increase in the demand for the good.
A decrease in the supply of the good.


Question # 10 of 20 ( Start time: 03:24:29 PM ) Total Marks: 1
Marginal social cost is the change in social costs caused by:
Select correct option:
A unit change in input.
A unit change in fixed cost.
A unit change in variable cost.
A unit change in output.


Question # 11 of 20 ( Start time: 03:26:01 PM ) Total Marks: 1
The demand for apples is expressed as: Qd = 80 - P The supply of apples is expressed as: Qs = 3P Refer to the above scenario, the equilibrium price of apples is:
Select correct option:
Rs. 10
Rs. 15
Rs. 20
Rs. 25


Question # 12 of 20 ( Start time: 03:27:34 PM ) Total Marks: 1
If the quantity demanded of computers exceeds the quantity supplied of computers:
Select correct option:
Market forces will cause the price to rise.
The market is in equilibrium.
There is a surplus of computers.
Market forces will cause the price to fall.


Question # 13 of 20 ( Start time: 03:28:41 PM ) Total Marks: 1
The percentage change in quantity demanded of a given good, with respect to the percentage change in the price of “another” good is called:
Select correct option:
Price elasticity of demand.
Income elasticity of demand.
Cross price elasticity of demand.
Supply price elasticity.


Question # 14 of 20 ( Start time: 03:29:27 PM ) Total Marks: 1
“Q = c + d P” represents equation of:
Select correct option:
Supply.
Demand.
Labor supply.
Budget line.


Question # 15 of 20 ( Start time: 03:30:39 PM ) Total Marks: 1
If desk lamps and bulbs are complementary goods, a fall in price of desk lamps will shift the demand curve for:
Select correct option:
Bulbs to the right.
Bulbs to the left.
Desk lamps to the right.
Desk lamps to the left.


Question # 16 of 20 ( Start time: 03:32:00 PM ) Total Marks: 1
When the price for entry tickets for parks decrease, families tend to spend more time at parks instead at home. This best reflects:
Select correct option:
Diminishing marginal utility.
The income effect.
The rationing function of markets.
The substitution effect.


Question # 17 of 20 ( Start time: 03:33:27 PM ) Total Marks: 1
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?
Select correct option:
Labor
Money
Capital
Entrepreneurship


Question # 18 of 20 ( Start time: 03:33:55 PM ) Total Marks: 1
Economics is different from other social sciences because it is primarily concerned with the study of ________.
Select correct option:
Limited resources
Scarcity
Social behavior
Biological behavior


Question # 19 of 20 ( Start time: 03:34:59 PM ) Total Marks: 1
The branch of economics that studies the entire economy, such topics as aggregate production, unemployment and inflation is called:
Select correct option:
Managerial economics.
Macro economics.
Micro economics.
Financial economics.


Question # 20 of 20 ( Start time: 03:35:39 PM ) Total Marks: 1
When the price of wheat rises by 10%, the quantity of wheat purchased falls by 4%. This shows that the demand for wheat is:
Select correct option:
Perfectly elastic.
Unit elastic.
Price elastic.
Price inelastic.