vu eco401 Final Term - Quiz No.8
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: What might be the reason of a leftward shift in the demand curve for product X?
A decrease in income if X is an inferior good.
An increase in income if X is a normal good.
An increase in the price of a product that is a close substitute for X.
An increase in the price of a product that is complementary to X.
Question 2: Which of the following is TRUE for third-degree price discrimination?
Charging different prices to different groups based upon differences in elasticity of demand.
Charging each consumer the same two part tariff.
The use of increasing block rate pricing.
Charging lower prices the greater the quantity purchased.
Question 3: Points inside the production possibility frontier (ppf) show that:
Efficient use of resources.
Inefficient use of resources.
Resources are not utilized.
All of the given
Question 4: The principle which states that a change in income causes a magnified change in investment is termed as the:
None of the given.
Paradox of thrift
Multiplier effect
Accelerator effect
Question 5: Which of the following best describes the Capital widening?
More capital per unit of labour
More capital and more labour but with the same amount of capital per unit of labour.
Increasing the usage of existing capital
Importing capital from the developed world.
Question 6: Which of the following statements best describes the difference between endogenous growth theory and the Solow growth theory?
Endogenous growth theory is a monetary theory whereas the Solow theory is a real theory.
Endogenous growth theory assumes diminishing returns to capital and the Solow theory assumes constant returns.
In endogenous growth theory, economies with the same technology and saving rate need not converge to the same steady state as in the Solow model.
All of the given options are correct.
Question 7: For which of the following good, the substitution effect of a lowered price is counteracting by the income effect?
For an inferior good
A substitute good
For an independent good.
For a normal good.
Question 8: Suppose price rises from Rs. 15 to Rs. 17 and quantity demanded decreases by 20%. We can conclude:
Demand is inelastic.
The elasticity of demand is 2.
Total revenue will decrease.
Demand is unit elastic.
Question 9: According to Classical models, the level of employment is determined primarily by:
The level of aggregate demand for goods and services.
Prices and wages.
Government taxation.
Government spending.
Question 10: Unlike the classical economists, Keynes believed that the economy could get stuck in the short run for a significant period of time because of:
Insufficient aggregate supply.
Insufficient aggregate demand.
Quick self correcting mechanism.
Government purchases of too many goods and services.
