vu eco401 Mid Term - Quiz No.5
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: We know that the demand for a product is elastic if:
When price rises, revenue rises.
When price rises, revenue falls.
When price rises, quantity demanded rises.
When price falls, quantity demanded rises.
Question 2: When the price elasticity of demand for a good is greater than 1, we say that the demand is:
Increasing.
Decreasing.
Elastic.
Inelastic.
Question 3: When an industrys raw material costs increase, other things remaining the same:
The supply curve shifts to the left.
The supply curve shifts to the right.
Output increases regardless of the market price and the supply curve shifts upward.
Output decreases and the market price also decrease.
Question 4: Capital widening means:
More capital and more labour, but with the same amount of capital per unit of labour.
More capital per unit of labour.
Increasing the usage of existing capital.
Importing capital from the developed world.
Question 5: An exchange rate that varies according to the supply and demand for the currency in the foreign exchange market is called a(n) __________ exchange rate.
Overvalued.
Undervalued.
Fixed.
Flexible.
Question 6: Growth rate of per capita income is equal to:
Growth rate of total output - Growth rate of population.
Growth rate of total output / Growth rate of population.
Growth rate of population / Growth rate of total output.
Growth rate of total output + Growth rate of population.
Question 7: The numerical measurement of a consumers preference is called:
Satisfaction.
Use.
Pleasure.
Utility.
Question 8: Economists who are concerned about the behavior of individual households, firms and industries are studying:
Microeconomics
Macroeconomics
Positive economics
Normative economics
Question 9: The study of economics basically focuses on:
For whom resources are allocated to increase efficiency.
How society spends the income of individuals.
How scarce resources are allocated to fulfill society's goals.
What scarce resources are used to produce goods and services.
Question 10: The trend of unemployment over the last forty years is:
A decrease in unemployment.
It has remained largely unchanged.
An increase in unemployment.
It is too difficult to tell so don't bother.
