vu eco401 Mid Term - Quiz No.4
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 percentage change in quantity demanded of a given good, with respect to the percentage change in the price of another good is called:
Price elasticity of demand.
Income elasticity of demand.
Cross price elasticity of demand.
Supply price elasticity.
Question 2: In the exogenous growth model, if investment exceeds depreciation, the capital stock will __________ and output will __________ until the steady state is attained.
Increase; increase.
Increase; decrease.
Decrease; decrease.
Decrease; increase.
Question 3: International data suggest that economies of countries with different steady states will converge to:
The same steady state.
Their own steady state.
The Golden Rule steady state.
Steady states below the Golden Rule level.
Question 4: Which of the following will happen if there is an increase in the long term economic growth?
The production possibilities curve will shift outward.
The production possibilities curve will shift inward.
There will be a movement from inside the production possibilities curve to a point on the production possibilities curve.
There will be a movement from the production possibilities curve to a point inside the production possibilities curve.
Question 5: A tax on the accounting profits of corporations is known as:
Sales tax.
Excise tax.
Corporate income tax.
Personal income tax.
Question 6: Which one of the following is most likely to lead to an increase in aggregate demand? An increase in:
Government tax revenues
Household savings
Business capital investment
Demand for imports
Question 7: Marginal utility is best described as:
The additional satisfaction gained by consumption of the last good.
The per unit satisfaction of the good consumed.
The total satisfaction gained from the total consumption of the good.
The change in satisfaction from consuming one additional unit of the good.
Question 8: For a monopolist, changes in demand will lead to changes in:
Price with no change in output
Output with no change in price
Both price and quantity
Any of the above is possible
Question 9: Revenue is equal to:
Price times quantity.
Price times quantity minus total cost.
Price times quantity minus average cost.
Price times quantity minus marginal cost.
Question 10: Fiscal policy is the government program with respect to its:
Steel Mill Privatization.
Unemployment reduction.
Expenditure and tax revenue.
Increase in unemployment.
