vu eco401 Mid Term - Quiz No.7
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: Endogenous growth theory differs in what essential aspect from the Solow theory of economic growth?
Endogenous growth theory is a monetary theory whereas the Solow theory is a real theory.
Endogenous growth theory assumes diminishing returns to capital and the Solow theory assumes constant returns.
In endogenous growth theory, economies with the same technology and saving rate need not converge to the same steady state as in the Solow model.
All of the given options are correct.
Question 2: While drawing a given market demand curve, __________ is not considered constant.
Income.
The price of the good in question.
The prices of related goods.
Preferences.
Question 3: Investment expenditures are expenditures made by the __________ sector:
Foreign.
Business.
Household.
Government.
Question 4: Price elasticities are measured in percentage terms because:
It makes students' lives more complicated.
The resulting measure is unit free.
It gives a more accurate answer.
The answer is always negative that way.
Question 5: An individual whose attitude towards risk is known as:
Risk averse.
Risk loving.
Risk neutral.
None of the given is necessarily correct.
Question 6: The upward-sloping aggregate supply curve indicates that: Select correct option:
An increase in aggregate demand causes little, if any increase in real output
The economy is operating in the long run
Any increase in aggregate demand causes the output of producers to fall because the
general price level rises
Question 7: Deflation is:
An increase in the overall level of economic activity.
An increase in the overall price level.
A decrease in the overall level of economic activity.
A decrease in the overall price level.
Question 8: When government sets the price of a good and that price is above the equilibrium price, the result will be:
A surplus of the good.
A shortage of the good.
An increase in the demand for the good.
A decrease in the supply of the good.
Question 9: Which of the following international accounts records the purchase and sale of financial assets and real estate between Pakistan and other nations?
The savings account.
The current account.
The capital account.
The financial account.
Question 10: Which of the following does NOT refer to macroeconomics?
The study of the aggregate level of economic activity.
The study of the economic behavior of individual decision-making units such as consumers, resource owners, and business firms.
The study of the cause of unemployment.
The study of the cause of inflation.
