vu eco401 Mid Term - Quiz No.1
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 Mid 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: When an industrys raw material costs decrease, other things remaining the same:
The supply curve shifts to the right.
The supply curve shifts to the left.
Output increases regardless of the market price and the supply curve shifts upward.
Output decreases and the market price also decrease.
Question 2: Moving from left to right, the typical production possibilities curve:
Is horizontal.
Has a constant positive slope.
Illustrates increasing opportunity costs.
Illustrates decreasing opportunity costs.
Question 3: Under New Classical macroeconomics monetary policy:
Affects the level of equilibrium output
Affects the composition of equilibrium output
Affects both the level and composition of equilibrium output
None of the given options
Question 4: At any given point on an indifference curve, the the slope is equal to:
Unity.
The marginal rate of substitution.
The consumer's marginal utility.
None of the given options.
Question 5: Which of the following events shifts the short-run aggregate supply curve to the right?
A decrease in the money supply
A drop in oil prices
An increase in government spending on military equipment
An increase in price expectations
Question 6: In monopolist market, a new entrant firm should produce where:
Marginal Cost < Marginal Revenue.
Marginal Cost > Marginal Revenue.
Marginal Cost = Marginal Revenue.
Marginal Cost = Average Revenue.
Question 7: In which market structure do firms exist in very large numbers, each firm produces an identical product and there is freedom of entry and exit?
Monopoly
Oligopoly
Perfect competition
Monopolistic competition
Question 8: Our economy is characterized by:
Unlimited wants and needs.
Unlimited material resources.
No energy resources.
Abundant productive labor.
Question 9: In which case, total expenditure in an economy is not equal to total income?
If total saving is larger than total investment.
If net exports are not zero.
If inventory investment is negative.
None of the given options--they are always equal.
Question 10: Diminishing marginal returns implies:
Decreasing marginal costs.
Increasing marginal costs.
Decreasing average variable costs.
Decreasing average fixed costs.
