vu eco402 Final Term - Quiz No.2
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: Rationing is
the allocation of a limited supply of a good or resource among users who would like to have more of it.
a function that can only be performed by market prices.
a function that is unnecessary except in cases where markets are used to allocate goods and resources.
essential only when the price of a product is set above market equilibrium.
Question 2: Coffee and tea are considered as substitutes, if price of tea decreases then it will shift
Demand curve for tea towards left
Demand curve for coffee towards left
Supply curve for coffee towards right
Demand curve for coffee towards right
Question 3: When we buy a product at low price in one location and sell it at high price in another location, it is known as __________ in economics.
Arbitrage
Market parameter
Consumer theory
Price discrimination
Question 4: If the supply of a good decreases, which of the following will generally occur in a market setting?
The price of the good will decrease.
Demand will decrease.
The quantity demanded will increase.
The quantity demanded will decrease.
Question 6: The price of an airline ticket from Denver to Washington, D.C., is $600. A bus ticket is $150. Traveling by plane takes six hours, compared with 36 hours by bus. Other things constant, an individual would gain by choosing air travel if, and only if, his time were valued at more than
$6 per hour.
$8 per hour.
$10 per hour.
$15 per hour.
Question 7: Slope of income consumption curve for an inferior good is:
Positive
Negative
First positive then negative
First negative then positive
Question 8: If the market price of a good is less than the opportunity cost of producing it,
the market price of the product will fall in the long run.
producers will increase supply in the long run.
resources will flow away from production of the good, causing supply to decline with the passage of time.
the situation will remain unchanged as long as supply and demand remain in balance.
Question 9: In a market economy, an increase in demand will generally cause the equilibrium a. price to fall.
quantity supplied to increase.
price to fall.
quantity demanded to fall.
number of firms in the market to decline.
Question 10: The basic difference between macroeconomics and microeconomics is that
macroeconomics looks at the forest (aggregate markets), while microeconomics is concerned with the individual trees (subcomponents).
macroeconomics is concerned with policy decisions, while microeconomics applies only to theory.
microeconomics is concerned with the forest (aggregate markets), while macroeconomics is concerned with the trees (components).
opportunity cost is applicable to macroeconomics, and the fallacy of composition relates to microeconomics.
