vu eco401 Mid Term - Quiz No.11
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: The kinked demand curve model is based on the assumption that each firm:
Considers its rival's output to be fixed
Considers its rival's price to be fixed
Believes rivals will match all price changes
None of the given options
Question 2: There are __________ methods of measuring GDP:
Four
Three
Five
None
Question 3: The demand curve facing a perfectly competitive firm is:
The same as its average revenue curve but not the same as its marginal revenue curve.
The same as its average revenue curve and its marginal revenue curve .
The same as its marginal revenue curve but not its average revenue curve.
Not the same as either its marginal revenue curve or its average revenue curve.
Question 4: The relationship between consumer spending and income is known as the:
45-degree line.
Consumption function.
Investment function.
Consumer price index.
Question 5: Real GDP is equal to:
Nominal GDP – Inflation.
Nominal GDP + Inflation.
Nominal GDP / Inflation.
Inflation / Nominal GDP.
Question 6: GDP is:
A stock
A flow.
Both a stock and a flow.
Neither a stock nor a flow.
Question 7: Which of the following is not a stock variable?
Government debt
The labor force
The amount of money held by the public
Inventory investment
Question 8: In a production process, all inputs are increased by 10%; but output increases more than 10%. This means that the firm experiences:
Decreasing returns to scale.
Constant returns to scale.
Increasing returns to scale.
Negative returns to scale.
Question 9: In Keynesian economics, if aggregate expenditures are less than aggregate output then:
The price level rises.
Inventories decrease.
Employment decreases.
Aggregate output increases.
Question 10: The oligopoly model that predicts that oligopoly prices will tend to be very rigid is the __________ model.
Cournot
Stackelberg
Dminant firm
Kinked demand
