vu eco401 Mid Term - Quiz No.3
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: Which of the following would cause the short run aggregate supply curve to shift to the left, but have no effect over the long run aggregate supply?
The amount of factors of production (such as labor and capital) increase
The amount of factors of production (such as labor and capital) decrease
Prices of inputs (such as wages or oil prices) increase
Prices of inputs (such as wages or oil prices) decrease
Question 2: If a decrease in price increases total revenue:
Demand is elastic.
Demand is inelastic.
Supply is elastic.
Supply is inelastic.
Question 3: Which of the following is true about the point on a nations production-possibilities curve?
It shows an undesirable combination of goods and services.
It shows the combinations of production that are unattainable, given current technology and resources.
It shows the level of production that will cause both unemployment and inflation.
It shows that resources are fully employed in producing a particular combination of goods and services.
Question 4: In Keynesian economics, an inflationary gap results if:
Aggregate expenditures are less than aggregate production.
Aggregate expenditures are greater than aggregate production.
Aggregate expenditures are equal to aggregate production.
There are no changes in inventories.
Question 5: A rational person does not act unless:
The action is ethical.
The action produces marginal costs that exceeds marginal benefits.
The action produces marginal benefits that exceeds marginal costs.
The action makes money for the person.
Question 6: If a firm operates in a perfectly competitive market, then it will most likely:
Advertise its product on television.
Have difficult time obtaining information about the market price.
Settle for whatever price is offered.
Have an easy time keeping other firms out of the market.
Question 7: The classical economists thought that the economy would quickly overcome any short run instability because:
Price level and quantity were flexible
Prices would get stuck at a low level
The long run aggregate supply would shift to the left
Prices and wages were flexible
Question 8: If firms in a competitive industry are experiencing losses in the short run, then:
The firms will try to raise prices.
Some firms will choose to shut down.
The industry will cease to exist.
New firms will enter the industry.
Question 9: Profit is maximized when:
Marginal revenue product is greater than marginal input cost
Marginal revenue product equals marginal input cost
Marginal revenue product is less than marginal input cost
Output is maximized
Question 10: If we observe that the production possibilities curve becomes steeper as we move down along the curve, then:
Opportunity costs are increasing.
Society's resources are limited.
Society's wants are unlimited.
Society's wants are unlimited.
