vu eco401 Final Term - Quiz No.12
vu eco401 Economics Quiz
This quiz belongs to book/course code vu eco401 Economics of vu organization. We have 33 quizzes available related to the book/course Economics. This quiz has a total of 10 multiple choice questions (MCQs) to prepare and belongs to topic Final Term. NVAEducation wants its users to help them learn in an easy way. For that purpose, you are free to prepare online MCQs and quizzes.
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Question 1: A good whose consumption increases due to increase in income is categorized as:
Inferior good
Giffen good
Superior good
Normal good
Question 2: The law of increasing opportunity costs states that:
The more one is willing to pay for resources, the larger will be the possible level of production.
Increasing the production of a particular good will cause the price of the good to rise.
In order to produce additional units of a particular good, it is necessary for society to sacrifice increasingly larger amounts of alternative goods .
Only by keeping production constant can rising prices be avoided.
Question 3: If there is a decrease in consumer's income from Rs. 12,000 to Rs. 10,000, the change in the quantity demanded of inferior goods can be shown by:
Shifting the demand curve leftward.
Shifting the demand curve rightward.
Moving down along the same demand curve.
Moving up along the same demand curve.
Question 4: Which of the following will result if there is a decrease in aggregate demand?
Expansion; inflation.
Recession; deflation.
Expansion; deflation.
Recession; inflation.
Question 5: The labour force is made up of:
The number of people employed minus the number of people unemployed.
The number of people employed plus the number of people unemployed.
Just the number of people employed.
The whole population.
Question 6: Which of the following is TRUE about the production function?
It relates inputs with output.
It generates a curve that is upward sloping.
It shows diminishing marginal product of an input.
All of the given
Question 7: Suppose the government increases spending. Which of the following would be part of the crowding out effect?
Interest rate rises and investment falls
Interest rate rises and velocity of circulation also rises
Higher interest rates encourage the central bank to increase the money supply
Interest rate falls and exports rise
Question 8: Welfare economics is the branch of economics which deals with:
Positive issues.
Normative issues.
Micro issues
Macro issues.
Question 9: If a country has flexible exchange rates and has more rapid inflation than other countries, its currency will:
Appreciate.
Depreciate.
Not change.
All of the given conditions may be possible.
Question 10: A demand curve is price inelastic when
Changes in demand are proportionately smaller than changes in price
Changes in demand are proportionately greater than changes in price
Changes in demand are equal to changes in price
None of the given options
