ECO401 Quiz No.1 Shared by Rabia

Question # 1 of 20 ( Start time: 07:03:25 PM ) Total Marks: 1
If the current market price is above the market clearing level. We would expect:
Select correct option:
A shortage to accumulate.
A surplus to accumulate.
Upward pressure on the current market price.
Lower production during the next time period.


Question # 2 of 20 ( Start time: 07:04:13 PM ) Total Marks: 1
Production possibility frontier analysis assumes that resources:
Select correct option:
Increase with production.
Are saved for emergency use.
Are used to produce thousands of goods.
Are used in a technically efficient way.


Question # 3 of 20 ( Start time: 07:05:14 PM ) Total Marks: 1
Other things remaining same, when raw material costs increase of an industry then:
Select correct option:
The supply curve shifts to the left.
The supply curve shifts to the right.
The demand curve shifts to the left.
The demand curve shifts to the right.


Question # 4 of 20 ( Start time: 07:06:37 PM ) Total Marks: 1
If the cross price elasticity of demand between two products is +3.5, then:
Select correct option:
One of the products is expensive and one is relatively inexpensive.
One product is a normal good and the other is an inferior good.
The two products are complements.
The two products are substitutes.


Question # 5 of 20 ( Start time: 07:07:56 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, if the equilibrium price of apples is Rs. 20, the equilibrium quantity of apples is:
Select correct option:
55
60
80
100



Question # 6 of 20 ( Start time: 07:08:39 PM ) Total Marks: 1
The cross-price elasticity of demand of complementary goods is:
Select correct option:
Less than 0.
Equal to 0.
Greater than 0.
Between 0 and 1.


Question # 7 of 20 ( Start time: 07:09:45 PM ) Total Marks: 1
The more inelastic the demand, the more of the tax’s burden will fall on:
Select correct option:
Consumers.
Producers.
Government.
Middle man.


Question # 8 of 20 ( Start time: 07:10:22 PM ) Total Marks: 1
Price floor results in:
Select correct option:
Equilibrium.
Excess demand.
Excess supply.
All of the given options.


Question # 9 of 20 ( Start time: 07:11:15 PM ) Total Marks: 1
During exams, Ali is studying for two hours a day and decides to spend an extra hour for better performance. The marginal benefit is the benefit that he gets from studying:
Select correct option:
All three hours
An extra hour
Two hours
Four hours


Question # 10 of 20 ( Start time: 07:11:43 PM ) Total Marks: 1
Mohsin Malik has been updated by his partner that this month Rs. 65,000 have been paid to acquire new machinery directly needed to match the rising demand. Which of the following they have paid for?
Select correct option:
Labor
Capital
Land
Entrepreneurship


Question # 11 of 20 ( Start time: 07:12:32 PM ) Total Marks: 1
If quantity demanded of videocassette players decreases by 15% as a result of 10% increase in its price, then one can conclude that demand for videocassette players is:
Select correct option:
Elastic.
Inelastic.
Perfectly elastic.
Perfectly inelastic.


Question # 12 of 20 ( Start time: 07:13:20 PM ) Total Marks: 1
If a 40% increase in the price of a product causes a 20% fall in the quantity demanded, the price elasticity of demand will be:
Select correct option:
-0.5.
-0.1.
+0.5.
-0.89.


Question # 13 of 20 ( Start time: 07:14:07 PM ) Total Marks: 1
If the cost of parts of automobiles falls, then:
Select correct option:
The demand curve for automobiles shifts to the right.
The supply curve for automobiles shifts to the right.
The demand curve for automobiles shifts to the left.
The supply curve for automobiles shifts to the left.


Question # 14 of 20 ( Start time: 07:14:50 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.


Question # 15 of 20 ( Start time: 07:15:29 PM ) Total Marks: 1
Which of the following is NOT true about macroeconomics?
Select correct option:
The study of the aggregate level of economic activity.
The study of the economic behavior of individual decision-making units such as consumers, resource owners, and business firms.
The study of the cause of unemployment.
The study of the cause of inflation.


Question # 16 of 20 ( Start time: 07:16:47 PM ) Total Marks: 1
Which of the following factors would cause leftward shift in supply curve for bicycles?
Select correct option:
Decrease in wages
Increase in prices of inputs
Decrease in prices of inputs
Use of latest technology in production of bicycles


Question # 17 of 20 ( Start time: 07:17:34 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 # 18 of 20 ( Start time: 07:18:39 PM ) Total Marks: 1
The demand for books is expressed as: Qd = 100 - P The supply of books is expressed as: Qs = 4P Refer to the above scenario, the equilibrium price of books is:
Select correct option:
Rs. 15
Rs. 20
Rs. 23
Rs. 25


Question # 19 of 20 ( Start time: 07:20:04 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 # 20 of 20 ( Start time: 07:21:10 PM ) 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.