ECO401 Quiz No.1 Shared by Taimoor ul Haq

Question # 1 of 20 ( Start time: 05:30:36 PM ) Total Marks: 1
Calculating elasticity at a certain point involves:
Select correct option:
Point elasticity of demand.
Cross price elasticity of demand.
Income elasticity of demand.
Arc elasticity of demand.


Question # 2 of 20 ( Start time: 05:31:50 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 # 3 of 20 ( Start time: 05:32:42 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 # 4 of 20 ( Start time: 05:33:32 PM ) Total Marks: 1
When producers are unable to meet market demand for the product, this results as:
Select correct option:
Surplus of goods
Market failure
Monopoly
Shortage of good


Question # 5 of 20 ( Start time: 05:34:44 PM ) Total Marks: 1
If more substitutes available in the market, the __________ demand will be in response to a change in price.
Select correct option:
More elastic
Less elastic
Unit elastic
Infinite elastic


Question # 6 of 20 ( Start time: 05:35:11 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 # 7 of 20 ( Start time: 05:35:52 PM ) Total Marks: 1
In a free market economy, resources are allocated on the basis of:
Select correct option:
Votes taken by consumers.
A central planning authority.
Consumer preferences.
The level of profits of firms.


Question # 8 of 20 ( Start time: 05:37:03 PM ) Total Marks: 1
A Higher demand for computers will ________________ of computers.
Select correct option:
Increase both equilibrium price and equilibrium quantity
Decrease both equilibrium price and equilibrium quantity
Increase equilibrium price and decrease equilibrium quantity
Decrease equilibrium price and increase equilibrium quantity


Question # 9 of 20 ( Start time: 05:38:12 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 # 10 of 20 ( Start time: 05:38:53 PM ) Total Marks: 1
Which of the following might be considered to be a characteristic of a planned economy?
Select correct option:
Government influence
Consumer sovereignty
Forbiddance of interest
Even income distribution


Question # 11 of 20 ( Start time: 05:39:53 PM ) Total Marks: 1
When the price of computer and the number of computers purchased both rise over the course of the year. One can say:
Select correct option:
The demand for computers has increased.
The demand curve for computers must be upward-sloping.
The supply of computers has increased.
The demand curve for computers must be downward-sloping.


Question # 12 of 20 ( Start time: 05:40:28 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 # 13 of 20 ( Start time: 05:41:24 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 # 14 of 20 ( Start time: 05:41:54 PM ) Total Marks: 1
A normative economic statement is a statement:
Select correct option:
of fact.
Used to test economic theory.
Of what ought to be, not what is.
Of what will occur if certain assumptions are true.


Question # 15 of 20 ( Start time: 05:42:45 PM ) Total Marks: 1
“Q= a – b P” represents equation of:
Select correct option:
Supply.
Demand.
Labor supply.
Budget line.


Question # 16 of 20 ( Start time: 05:43:44 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 # 17 of 20 ( Start time: 05:44:40 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 # 18 of 20 ( Start time: 05:45:29 PM ) Total Marks: 1
Accounts office of Z&X corporations has paid Rs.250000 on account of profit in the month of August 2011. Which of the following the accounts office has paid for?
Select correct option:
Labor
Capital
Land
Entrepreneurship


Question # 19 of 20 ( Start time: 05:46:28 PM ) Total Marks: 1
Atif Khan, Young minister for agriculture, has updated in a talk show that rise in food prices is due to the rising oil prices. Which category his statement falls in?
Select correct option:
Normative
Positive
Negative
None of the given options


Question # 20 of 20 ( Start time: 05:47:42 PM ) Total Marks: 1
Measurement of elasticites is made in percentage terms because:
Select correct option:
It is easy to calculate.
The resulting measure is unit free.
It gives a more accurate answer.
The answer is always negative that way.