ECO401 Midterm Past Papers

ECO401 – Introduction To Economics · FALL 2022 Mid term SOLVED File · VU GLOBAL (Psychology Team) · Mudasir Ali Rao · Contact us to join our esteemed network +96569002641 · ECO401 · - Introduction To Economics · FALL · 2022 · Mid · term SOLVED · File · Prepared · By: · VU GLOBAL (Psychology Team) · ViUdd · ALU · Contact · us · to join our esteemed network

Q1. of 10 ( start time: 11:42:15 AM, 31 December 2021 )

A firm is producing output by using two inputs Le. labor and capital, paying wages to labor and rent to capital. Suppose price of one input like labor increases, it shows that the isocost line:

Oo;

ea

Shifts outward

Undergoes no change

Shifts inward

O};O}

O

Q2. of 10 ( start time: 11:43:18 AM, 31 December 2021)

which of the following is the slope of the indifference curve (IC);

Mux = Muy

Mux

+ Muy

or"

LZ

Q3. of 10 ( start time: 11:43:49 AM, 31 December 2021)

Consumer will consume additional units of commodity until marginal utility becomes:

Select

the correct option Equal to the income

Equal to the price

Equal to the utility

Equal to one

O}; OO} O

The law of diminishing returns states that as more units of a variable factor are added to a fixed factor:

Select

the correct option The marginal product falls.

The total product falls.

The marginal product increases.

Marginal utility falls.

O · O · O