vu eco401 Mid Term - Quiz No.9
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: It is expected that the sign of cross price elasticity of demand between two complementary goods would be:
Positive.
Negative.
Zero.
Ambiguous.
Question 2: When the price of petrol rises by 8%, the quantity of petrol purchased falls by 6%. This shows that the demand for petrol is:
Perfectly elastic.
Unit elastic.
Price elastic.
Price inelastic.
Question 3: The effect of a change in income on the quantity of the good consumed is called the:
Income effect.
Budget effect.
Substitution effect.
Real income effect.
Question 4: If marginal product is above the average product:
The total product will fall
The average product will rise
Average variable costs will fall
Total revenue will fall
Question 5: All other things equal, GDP will rise if:
Imports rise
Exports fall
Durable goods consumption rises
Military spending falls
Question 6: In a perfectly competitive market:
Firms can freely enter and exit.
Firms sell a differentiated product.
Transaction costs are high.
All of the given options.
Question 7: Which of the following is true about the entrepreneur?
An entrepreneur is an innovator.
An entrepreneur is someone who brings resources together and produces a product.
An entrepreneur is a risk taker.
All of the given options are correct.
Question 8: Which of the following is a characteristic of a mixed economy?
In mixed economy, resources are governed by both government and individuals.
Mixed economy utilizes the characteristics of both market economy and planned economy to allocate goods and services.
People are free to make their decisions and government controls the Defence.
All of the given options are true.
Question 9: If a firm pays cash to buy a building so as to have office space for its workers, the monthly opportunity cost of the building is best measured as:
The price the firm paid divided by twelve.
Zero.
The rent the firm could earn if it rented the building to another firm.
The monthly mortgage payment the firm would have had to pay.
Question 10: The burden of a tax is shifted toward buyers if:
Demand is perfectly elastic.
Demand is relatively more elastic than supply.
Demand is relatively more inelastic than supply .
Demand and supply have equal elasticities.
