vu eco401 Mid Term - Quiz No.8
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 utility remains the same for original and new combination of goods consumed, the effect of a change in the price of a good on the quantities consumed will be called as:
Substitution effect.
Real income effect.
Income effect.
Budget effect.
Question 2: If the supply of a product decreases and supply curve shifts leftward, and the demand for that product simultaneously increases and demand curve shifts rightward, then equilibrium:
Price must rise.
Price must fall.
Quantity must rise.
Quantity must fall.
Question 3: If there is a price ceiling, there will be:
Shortages.
Surpluses.
Equilibrium.
None of the given options.
Question 4: The relationship between tax rates and total tax collections by government is known as:
Laffer curve.
Demand curve.
Supply curve.
Investment curve.
Question 5: Endogenous growth theory was developed in:
1980
1965
1970
1950
Question 6: If injections are less than withdrawals at the full-employment level of income then there arises:
A deflationary gap.
Hysteresis.
Hyperinflation.
An inflationary gap.
Question 7: The short run, as economists use the phrase, is characterised by:
All inputs being variable.
At least one fixed factor of production and firms neither leaving nor entering the industry.
No variable inputs - that is, all of the factors of production are fixed.
A period where the law of diminishing returns does not hold.
Question 8: Potential GDP is an estimate of the economys ability to produce goods and services if:
Labor force is fully employed.
Price level is stable.
Trade balance is zero.
Federal budget is balanced.
Question 9: This market situation is much like a pure monopoly except that its member firms tend to cheat on agreed upon price and output strategies. What is it?
Duopol
Cartel
Market sharing monopoly
Natural monopoly
Question 10: Goods X and Y are complements while goods X and Z are substitutes. If the supply of good X increases:
The demand for both Y and Z will increase.
The demand for Y will increase while the demand for Z will decrease.
The demand for Y will decrease while the demand for Z will increase.
The demand for both Y and Z will decrease.
