vu eco401 Final Term - Quiz No.4
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: The long run aggregate supply curve will shift to the right if:
The price level increases
Factors of production (such as labor and capital) increase.
Expenditures (such as consumption and net exports) increase.
The prices of inputs used to produce goods and services (such as wages and the price of oil) decrease.
Question 2: The demand curve for eggs is downward-sloping. Suddenly the price of eggs increases from Rs.80/- per dozen to Rs.100/- per dozen. This will cause:
The demand curve for eggs to shift leftward
Quantity demanded of eggs to decrease
The demand curve for eggs to shift rightward
Quantity demanded of eggs to increase
Question 3: Total national investment consists of:
Gross domestic fixed capital formation.
Change in stocks
Export less imports
All of the given options.
Question 4: According to the utility model of consumer demand, the law of diminishing marginal utility indicates that the demand curve is:
Vertical.
U-shaped.
Upward sloping.
Downward-sloping.
Question 5: Which of the following is TRUE in a planned economy?
Goods and services produced reflect consumer sovereignty
Price is relatively unimportant as a means of allocating resources.
There is no incentive for people to work hard.
All income is completely evenly distributed.
Question 6: A normative economic statement:
Is a statement of fact.
Is a hypothesis used to test economic theory.
Is a statement of what ought to be, not what is.
Is a statement of what will occur if certain assumptions are true.
Question 7: Which of the following will happen by a reduction in net exports all other things being equal?
It will result in a movement up along the aggregate demand curve.
It will reduce aggregate supply
It will reduce aggregate demand
It will not change aggregate demand or aggregate supply in the domestic economy
Question 9: The concave shape of the production possibilities curve for two goods X and Y illustrates:
Increasing opportunity costs for both goods.
Increasing opportunity cost for good X but not for good Y.
Increasing opportunity cost for good Y but not for good X.
Constant opportunity costs for both goods.
Question 10: If the quantity demand of a product is greater than the quantity supplied of a product, then:
There is a shortage of the product.
There is a surplus of the product.
The product is a normal good.
The product is an inferior good.
