vu eco401 Final Term - Quiz No.9
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: Public education creates:
Asymmetric information.
External costs
Internal costs.
External benefits.
Question 2: Suppose all inputs are increased by 30% and output increases by more than 30% in a production process. This means that the firm experiences:
Decreasing returns to scale.
Constant returns to scale.
Increasing returns to scale.
None of the given options.
Question 3: Which of the following is the best example of a public good?
A cup of coffee.
A monthly magazine.
A haircut.
An interstate highway.
Question 4: According to Keynesian economics, aggregate expenditures are the sum of desired or planned spending undertaken by:
The household sector after taxes.
The business and government sectors.
All four sectors only when the economy is at full employment.
All four sectors at a specific aggregate production level.
Question 5: In growth process of under developed countries, high rate of population growth:
Is not accompanied by smaller increase in product per capita.
Is not accompanied by increasing total product.
Is an obstacle in economic growth.
Is good for economic growth.
Question 6: Which of the following is NOT to be included in national product?
Wheat produced and consumed by a farmer.
House built by the owner himself.
Old house sold by its owner A to person B.
Machines made by firm A.
Question 7: The production possibility frontier (PPF) shows all combinations of goods that:
Society most desires.
Lie outside the curve.
Reflect full production.
An economy can produce with all available resources.
Question 8: Who may start a price war in order to get a larger share of the market?
Perfect competitor
Oligopolist
Monopolist
Economist
Question 9: Which of the following predictions can be made using the growth rates associated with the equation of exchange, given that velocity is stable and that the economy moves to its potential output (YP) in the long run?
If the money supply grows at a faster rate than growth in YP, there will be inflation
If the money supply grows at the same rate as growth in YP, the price level will fall and there will be deflation.
If the money supply grows at the same rate as growth in YP, the price level will also increase at the same rate as growth in YP.
None of the given options
Question 10: A government wishing to reduce a deficit on the current account of their balance of payments through the use of fiscal policy would be most likely to:
Raise direct taxation.
Introduce an import quota.
Reduce the rate of value added tax on all goods and services.
Raise interest rates.
