vu eco402 Final Term - Quiz No.1
vu eco402 Microeconomics Quiz
This quiz belongs to book/course code vu eco402 Microeconomics of vu organization. We have 8 quizzes available related to the book/course Microeconomics. This quiz has a total of 10 multiple choice questions (MCQs) to prepare and belongs to topic Final 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: The supply curve slopes upward demonstrating that at:
Higher prices firms will increase output
Higher prices firms will decrease output
Lower prices firms will increase output
None of the given
Question 2: Which of the following is a branch of economics that deals with observations of real economic facts?
Normative economics
Positive economics
Welfare economics
All of the given
Question 3: Three basic decisions must be made by all economies. What are they?
how much will be produced; when it will be produced; how much it will cost
what the price of each good will be; who will produce each good; who will consume each good
what will be produced; how goods will be produced; for whom goods will be produced
how the opportunity cost principle will be applied; if and how the law of comparative advantage will be utilized; whether the production possibilities constraint will apply
Question 4: Coffee and tea are considered as substitutes if price of coffee increases then it will shift
Demand curve for tea towards left
Supply curve for tea towards left
Demand curve for coffee towards right
Demand curve for tea towards right
Question 5: If an economy is operating at a point inside the production possibilities curve,
its resources are being wasted.
the curve will begin to shift inward.
the curve will begin to shift outward.
This is a trick question because an economy cannot produce at a point inside the curve.
Question 6: Indifference curve cannot slope upward due to the assumption of
More of any good is preferred to less
Preferences are transitive
Preferences are complete
None of the given
Question 7: Which of the following will cause the demand curve for Apple to shift to the right?
Increase in taste and preferences
Decrease in taste and preference
Decrease in the income
Decrease in the price of substitutes
Question 8: Market equilibrium is a market state where:
The supply in the market is equal to the demand in the market
The supply in the market is greater than the demand in the market
The supply in the market is not equal to the demand in the market
The supply in the market is less than the demand in the market
Question 9: Economic choice and competitive behavior are the result of
basic human greed.
poverty
private ownership of resources
scarcity.
Question 10: Which one of the following is a positive economic statement?
An increase in the price of butter causes consumers to buy less butter.
Social conscience demands that we increase the minimum wage.
Taxes should be raised to halt inflation.
The sales tax on food should be repealed.
