vu eco401 Final Term - Quiz No.5
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: Suppose the government sets minimum prices of crops to support farmers. This is an example of:
Price ceiling
Price floor
Free market equilibrium
Shortage
Question 2: When the cross-price elasticity of demand for two goods is less than zero then the goods are __________ goods.
Complementary
Substitute
Inferior
Giffen
Question 3: If the price of a good X is increased by 15% and its quantity demanded falls by 25%, the price elasticity of demand is:
Price elastic
Price inelastic
Unit price elastic
Normal
Question 4: Balance of payments problems are also often a result of:
High domestic deflation.
Domestic unemployment.
Domestic poverty.
High domestic inflation
Question 5: In the short run, the equilibrium price level and the equilibrium level of total output are determined by the intersection of:
The aggregate demand, the short-run aggregate supply and the long-run aggregate supply curves.
The short-run aggregate supply and the long-run aggregate supply curves.
The aggregate demand and the short-run aggregate supply curves.
The aggregate demand and the long-run aggregate supply curves.
Question 6: Identify the grammatical error in the following sentence.
Our society's fascination with celebrities lives has resulted in recent stalking incidents.
Our society's fascination with celebrities lives has resulted in recent stalking incidents.
Subject-verb agreement error
Punctuation error
Pronoun-antecedent agreement error
Apostrophe error
Question 7: According to the law of diminishing marginal utility, as the consumption of particular good increases:
Total utility increases.
Marginal utility increases.
Total utility decreases.
Marginal utility decreases.
Question 8: The aggregate demand will decrease if:
Investment spending decreases.
Government spending increases.
Consumption spending increases.
Imports decreases.
Question 9: A market is said to be in equilibrium when:
Supply equals Price.
There is downward pressure on price.
The amount consumers wish to buy at the current price equals the amount producers wish to sell at that price.
All buyers are able to find sellers willing to sell to them at the current price.
Question 10: In a period of boom, credit creation is:
Small
Heavy
Unchanged
Zero
