ECO401 Quiz No.1 Shared by Sheikh Yasir

Question # 4 of 20 ( Start time: 05:57:46 PM ) Total Marks: 1
A cost of producing an additional unit of good or service is known as:
Select correct option:
Average cost.
Variable cost.
Marginal cost.
Sunk cost.


Question # 5 of 20 ( Start time: 05:59:17 PM ) Total Marks: 1
Suppose a teacher organizes a study group by reserving a meeting room, compiling study materials and attracting students. This teacher would most likely be which of the following factors of production?
Select correct option:
Labor
Money
Capital
Entrepreneurship


Question # 6 of 20 ( Start time: 06:00:24 PM ) Total Marks: 1
Sultan is running a logistics business and provides logistics services to the local business community. For parking trucks he has hired an open plot in the mid of the city. For his company, the open plot falls in the category of _________.
Select correct option:
Labor
Capital
Land
Entrepreneurship


Question # 7 of 20 ( Start time: 06:01:49 PM ) Total Marks: 1
Ehsan Chappal Store (ECS) is a leading shoes manufacturing company. If quantity supplied of ECS shoes increases more than the increase in price, then one can conclude that the supply curve for shoes is:
Select correct option:
Elastic.
Inelastic.
Perfectly elastic.
Perfectly inelastic.


Question # 8 of 20 ( Start time: 06:03:25 PM ) Total Marks: 1
If the equilibrium price of Panadol tablet is Rs.2 and government imposes a Rs.1 price ceiling on the price of Panadol tablet, there will be ________ of Panadol tablet.
Select correct option:
Surplus
Shortage
Increase in production
Decrease in demand


Question # 9 of 20 ( Start time: 06:04:46 PM ) Total Marks: 1
Our economy is characterized by:
Select correct option:
Unlimited wants and needs.
Unlimited material resources.
No energy resources.
Abundant productive labor.


Question # 10 of 20 ( Start time: 06:05:38 PM ) Total Marks: 1
Price floor results in:
Select correct option:
Equilibrium.
Excess demand.
Excess supply.
All of the given options.


Question # 11 of 20 ( Start time: 06:06:33 PM ) Total Marks: 1
When government sets the price of a good and that price is above the equilibrium price, the result will be:
Select correct option:
A surplus of the good.
A shortage of the good.
An increase in the demand for the good.
A decrease in the supply of the good.


Question # 12 of 20 ( Start time: 06:07:23 PM ) Total Marks: 1
The effect of a change in income on the quantity of the good consumed is called the:
Select correct option:
Income effect.
Budget effect.
Substitution effect.
Real income effect.


Question # 13 of 20 ( Start time: 06:08:05 PM ) Total Marks: 1
Suppose that the total utilities for the third and fourth units of a good consumed are 69 and 83, respectively. The marginal utility for the fourth unit is:
Select correct option:
-14.
14.
69.
83.


Question # 14 of 20 ( Start time: 06:09:02 PM ) Total Marks: 1
If the price of a good X is increased by 15% and its quantity demanded falls by 25%, the price elasticity of demand is:
Select correct option:
Price elastic.
Price inelastic.
Unit price elastic.
Normal.


Question # 15 of 20 ( Start time: 06:10:13 PM ) Total Marks: 1
The percentage change in quantity demanded given a percentage change in consumer's income is known as:
Select correct option:
Price elasticity of demand.
Income elasticity of demand.
Supply price elasticity.
Cross price elasticity.


Question # 16 of 20 ( Start time: 06:11:18 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 # 17 of 20 ( Start time: 06:12:28 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 # 18 of 20 ( Start time: 06:13:27 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 # 19 of 20 ( Start time: 06:14:50 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 # 20 of 20 ( Start time: 06:15:49 PM ) Total Marks: 1
Sultan is running a logistics business and provides logistics services to the local business community. For his company truck drivers fall in the category of ______.
Select correct option:
Labor
Capital
Land
Entrepreneurship