vu eco401 Final Term - Quiz No.18
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 2: Other things remaining same, when raw material costs increase of an industry then:
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 3: The law of diminishing marginal utility:
Refers to the decrease in total satisfaction as more units of the good are consumed.
Refers to the fall in additional satisfaction created by consumption of more and more.
Refers to the units of a good.
Refers to the idea that total utility is negative.
Question 4: What will happen to LM curve if the central bank increased the supply of real money balances?
It would become steeper.
It would become flatter.
It would shift upward.
It would shift downward.
Question 5: In classical theory, excess supply of a product would be associated with:
Rising interest rates
Falling interest rates
Rising price for the product
Falling price for the product
Question 6: The money aggregate M1 does not include:
Currency in the vaults of commercial banks.
Currency in the hands of the public
Travelers checks that have been issued
Demand deposits at commercial banks
Question 7: Costs determine all of the following EXCEPT:
Firm's behaviour.
How firms should expand?
Firm's profitability.
Demand for a product.
Question 8: Collusion occurs when two or more firms decide to cooperate with each other in the setting of prices and
Labor demanded
Capital demanded
Quantity of good supplied
Quanlities
Question 9: According the law of diminishing returns:
The marginal product falls as more units of a variable factor are added to a fixed factor.
Marginal utility falls as more units of a product are consumed.
The total product falls as more units of a variable factor are added to a fixed factor.
The marginal product increases as more units of a variable factor are added to a fixed factor.
Question 10: The demand curve for labour can be derived from the intersection of:
Horizontal wage rate lines and the marginal revenue product of labour.
Vertical wage rate lines and the marginal revenue product of labour.
Vertical wage rate lines and the marginal revenue product of capital.
Horizontal wage rate lines and the marginal revenue product of capital.
