vu eco401 Final Term - Quiz No.13
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: To make the equation of exchange into the quantity theory of money:
V and Q are assumed to be constant.
The money supply is assumed to be produced by the banking system and not exclusively in currency.
The quantity of money is assumed to determine the amount of Real GDP.
M and P are considered constant.
Question 2: Current account deficit can be reduced by:
Devaluation of currency
Revaluation of currency
Reduction in exports
Fiscal deficit
Question 3: Ali initially started a small day care centre with only 10 children and one staff member. But he found that the cost per child is very high. He wants to expand the centre. Which of the following will happen when Ali expands the centre?
Economies of scale
Diseconomies of scale
Increasing returns to the labor inputs
Decreasing returns to the labor inputs
Question 4: The break-even point occurs when:
Price < Average Variable Cost.
Price < Average Total Cost.
Price = Average Total Cost.
Price > Average Variable Cost.
Question 5: A demand schedule is best described as:
A numerical tabulation of the quantity demanded of a good at different prices, ceteris paribus.
A graphical representation of the law of demand.
A systematic listing of all the variables that might conceivably bring about a change in demand.
A symbolic representation of the law of demand: P, Q and P, Q.
Question 6: If pen and ink are complements, then an increase in the price of pen will cause:
An increase in the price of ink
Less ink to be demanded at each price
A decrease in the demand for pen
A rightward shift in the demand curve for ink
Question 7: When the price of wheat rises by 10%, the quantity of wheat purchased falls by 4%. This shows that the demand for wheat is:
Perfectly elastic
Unit elastic
Price elastic
Price inelastic
Question 8: If the cross price elasticity of demand between two products is +3.5, then:
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 9: Concentration ratio is used to assess:
The level of competition in an industry.
The degree of control over prices.
The technological gaps between the firms.
Marginal cost and marginal benefit analysis.
Question 10: According to classical economists, the:
Aggregate demand curve is downward sloping and the aggregate supply curve is vertical
Aggregate demand curve is downward sloping and the aggregate supply curve is upward sloping
Aggregate demand curve is vertical and the aggregate supply curve is upward sloping
Aggregate demand curve is vertical and the aggregate supply curve is horizontal
