vu eco401 Mid Term - Quiz No.6
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: If the cost of computer components falls, then
The demand curve for computers shifts to the right.
The demand curve for computers shifts to the left.
The supply curve for computers shifts to the right.
The supply curve for computers shifts to the left.
Question 2: If marginal product is below average product:
The total product will fall
The average product will fall
Average variable costs will fall
Total revenue will fall
Question 3: An exchange rate system in which central banks are always ready to buy and sell their currencies at predetermined prices is called:
A dirty floating exchange rate system.
A flexible exchange rate system.
A managed exchange rate system .
A fixed exchange rate system.
Question 4: The law of diminishing marginal utility indicates that the demand curve is:
Vertical.
U shaped.
Upward sloping.
Downward sloping.
Question 5: An indifference curve is:
A collection of market baskets that are equally desirable to the consumer.
A collection of market baskets that the consumer can buy.
A curve whose elasticity is constant for every price.
A curve which passes through the origin and includes all of the market baskets that the consumer regards as being equivalent.
Question 6: Which of the following is the Fisher Equation of Exchange?
MT=PV.
VT=PM.
MV=PQ.
MY=VP.
Question 7: The government has a budget surplus if:
Its total revenues are equal to its total expenditures.
Its total revenues are less than its total expenditures.
Its total revenues are greater than its total expenditures.
The money supply is less than total expenditures.
Question 8: The most important factor in determining the long-run profit potential in monopolistic competition is:
Free entry and exit.
The elasticity of the market demand curve.
The elasticity of the firm's demand curve.
The reaction of rival firms to a change in price.
Question 9: The long run aggregate supply will shift to the right whenever:
The price level increases
Factors of production (such as labor and capital) increase
Expenditures (such as consumption and net exports) increase
The prices of inputs used to produce goods and services (such as wages and the price of oil) decrease
Question 10: Assume that the government sets a ceiling on the interest rate that banks charge on loans. If the ceiling is set below the market equilibrium interest rate, the result will be:
A surplus of credit.
A shortage of credit.
Greater profits for banks issuing credit.
A perfectly inelastic supply of credit in the market place.
