vu eco401 Mid Term - Quiz No.12
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.
NVAEducation also facilitates users to contribute in online competitions with other students to make a challenging situation to learn in a creative way. You can create one to one, and group competition on an topic of a book/course code. Also on NVAEducation you can get certifications by passing the online quiz test.
Question 1: The law of diminishing marginal utility states:
The supply curve slopes upward.
Your utility grows at a slower and slower rate as you consume more and more units of a good.
The elasticity of demand is infinite.
None of the given options.
Question 2: When the marginal revenue product is greater than the marginal input cost of labor, the profit maximizing firm will:
Hire more
Hire less
Maintain the same employment
Decrease output
Question 3: Real GDP:
Is nominal GDP adjusted for changes in the price level.
Is also called nominal GDP.
Measures GDP minus depreciation of capital.
Will always change when prices change.
Question 4: Insurance companies operate under the principle of:
Law of large numbers.
Law of small numbers.
Law of zero numbers.
All of the given options.
Question 5: In the classical model, given an initial aggregate equilibrium at full employment, the long run effect of an increase in government spending is;
An increase in the price level
An upward shift of the aggregate demand curve
A constant level of output
All of the above
Question 6: Graphically, marginal revenue is defined as:
The slope of a line from the origin to a point on the total revenue curve.
The slope of a line from the origin to the end of the total revenue curve.
The slope of the total revenue curve at a given point.
The vertical intercept of a line tangent to the total revenue curve at a given point.
Question 7: The level of aggregate demand will decrease if the level of:
Consumption spending increases
Imports decreases
Investment spending decreases
Government spending increases
Question 9: More output could be produced with available resources if:
Resources are allocated efficiently.
Resources are imperfectly shiftable among alternative uses.
Prices are reduced.
The economy is operating at a point inside the production possibilities curve.
Question 10: Which of the following might be considered to be a characteristic of a planned economy?
All income is completely evenly distributed.
Price is relatively unimportant as a means of allocating resources.
Goods and services produced reflect consumer sovereignty.
There is no incentive for people to work hard.
