vu eco402 Final Term - Quiz No.6
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 economic wealth of this country is primarily the result of the profit made by some individuals at the expense of others. The person who made this statement
has failed to comprehend that mutual gains result from specialization and exchange.
has failed to comprehend the fallacy of composition.
has failed to understand the significance of the production possibilities constraint.
has utilized the economic way of thinking; the statement is essentially correct.
Question 2: The expenditure that has been made and cannot be recovered is called:
Opportunity cost
Accounting cost
Sunk cost
Economic cost
Question 3: What do economists mean when they state that a good is scarce?
There is a shortage or insufficient supply of the good at the existing price.
It is impossible to expand the availability of the good
People will want to buy more of the good regardless of price.
The amount of the good that people would like to have exceeds the supply that is freely available from nature.
Question 4: Now that Blake paints the broad surfaces and I do the trim work, we can paint a house in three-fourths the time that it took for each of us to do both.
the importance of secondary effects.
the fallacy of composition.
the law of comparative advantage.
behavior inconsistent with economizing.
Question 5: Economic profit is best defined as
a company's net income as indicated by its accounting statement.
the difference between the price of a product and the monetary cost of the raw materials used to produce it.
the difference between the revenue from the sale of a product and the opportunity cost of the resources used to produce it.
income paid by a business to its owners.
Question 6: Adam Smith believed that if people were free to pursue their own interests, then
greed and cheating would prevail in the market.?
less would be produced than if altruism were our guiding principle.
they would generally be encouraged to produce goods and services that others valued highly (relative to their costs).
the public interest would be best served, but the interests of employers would be hurt.
Question 7: Which of the following will most likely occur under a system of clearly defined and enforced private property rights?
Resource owners will fail to conserve vital resources, even if they expect their scarcity to increase.
Resource owners will ignore the wishes of others, including others who would like to use the resource that is privately owned.
Resource owners will fail to consider the wishes of potential future buyers when they decide how to employ privately owned resources.
Resource owners will gain by discovering and employing their resources in ways that are highly valued by others.
Question 8: If a firm or a nation desires to maximize its output, each productive assignment should be carried out by those persons who
have the highest opportunity cost.
have a comparative advantage in the productive activity.
can complete the productive activity most rapidly.
least enjoy performing the productive activity.
Question 9: Second-degree price discrimination is the practice of charging:
The reservation price to each customer.
Different prices for different blocks of the same good or service.
Different groups of customers different prices for the same products.
Each customer the maximum price that he or she is willing to pay.
Question 10: If the supply of apples decreases, which of the following will generally occur in a market setting?
Demand for apples will decrease.
The quantity demanded will increase.
The costs of apple producers will decrease.
The price of apples will increase.
