vu eco401 Mid Term - Quiz No.2
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: Suppose the price of railway ticket decreases, what will happen in the market for airline travel?
The demand curve for airline travel shifts left.
The demand curve for airline travel shifts right.
The supply curve of airline travel shifts left.
The supply curve of airline travel shifts right.
Question 2: In the kinked demand curve model, if one firm reduces its price:
Other firms will also reduce their price
Other firms will compete on a non-price basis
Other firms will raise their price
Both (a) and (b) are correct
Question 3: If the equilibrium price of bread is Rs. 3 and the government imposes Rs. 2 price ceiling on the price of bread then:
More bread will be produced to meet the increased demand.
There will be a shortage of bread.
The demand for bread will decrease because suppliers will reduce their supply.
A surplus of bread will emerge.
Question 4: In which market structure(s) will price exceed marginal revenue?
Differentiated oligopoly and monopoly only
Standardized oligopoly and pure competition only
Monopolistic competition and monopoly only
Monopolistic competition, oligopoly, and monopoly
Question 5: The extra value that consumers receive above what they pay for that good is called:
Producer surplus.
Utility.
Marginal utility.
Consumer surplus.
Question 6: If the investment demand curve is vertical then:
Both monetary and fiscal policy are ineffective.
Both monetary and fiscal policy are effective.
Monetary policy is effective but fiscal policy is ineffective.
Monetary policy is ineffective but fiscal policy is effective.
Question 7: Which of the following concepts apply to oligopoly more than to any other market structure?
Advertising and product differentiation
Easy entry and more than one firm in the market
Homogeneous product and perfect information
Concentration and interdependence
Question 8: If the quantity supplied of mangoes exceeds the quantity demanded of mangoes:
There is a shortage of mangoes.
Market forces will cause the price to fall.
Market forces will cause the price to rise.
The market is in equilibrium.
Question 9: One explanation why the economy does not self correct quickly is
With less consumption and more savings the interest rate will drop
In the short run workers are fully employed and cannot produce enough to get to long run equilibrium
Wages and prices are flexible
Wages and prices are sticky
Question 10: Current account deficit is equal to:
Private sector resource deficit.
Government budget deficit.
Private sector resource deficit + Government budget deficit.
None of the given options.
