vu eco402 Final Term - Quiz No.5
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 number of persons wanting tickets to Super Bowl games is invariably greater than the number of tickets (and seats) available. This is evidence that the price of the tickets is
higher than the competitive equilibrium price.
equal to the competitive equilibrium price since the number of tickets bought equals the number sold.
lower than the competitive equilibrium price.
higher than the competitive equilibrium price when the demand is inelastic but lower when the demand is elastic
Question 2: The bowed out shape of the production possibilities frontier indicates:
That resources are perfectly adaptable to the production of the two goods
That resources are not perfectly adaptable to the production of the two goods
The constant opportunity cost
Resources are used inefficiently
Question 3: Entrepreneur gets its reward in shape of:
Wages
Interest
Profit
Both Interest and profit
Question 4: If gasoline sales were taxed, the price of gasoline would rise. Consequently, the demand for gasoline would decline. As a result of the higher gasoline prices, the demand for fuel-efficient automobiles would increase. This statement is
essentially correct
incorrect; the high gasoline prices would cause the quantity demanded of gasoline, not the demand, to fall.
incorrect; the statement confuses a change in demand with a shift in supply.
incorrect; demand is confused with quantity demanded for both gasoline and fuel efficient cars.
Question 5: If the cross elasticity of demand is -2
The products are substitutes
The products are inferior goods
The products are complements
All of the given
Question 6: Income elasticity of demand for a normal good is always
Negative
Between 0 and 1
Between 1 and 2
Greater than 1
Question 7: If the demand for a good decreases, which of the following will generally occur in a market setting?
The price of the good will increase.
The supply of the good will decrease.
The quantity supplied will decrease.
Producer profits will rise.
Question 8: Which of the following characteristics differentiates competitive market from non-competitive market?
The extent to which any firm can influence the price of the product
The size of the firms in the market
The annual sales made by the largest firms in the market
The presence of government intervention
Question 9: Which of the following sayings best reflects the concept of opportunity cost?
You can't teach an old dog new tricks.
Time is money.
I have a bakers dozen.
Theres no business like show business.
Question 10: In the long run, if a firm is facing higher marginal cost than the average cost; then certainly per unit total cost will:
Rise
Fall
Remain constant
Be at minimum level
