ECO401 Current Quizzes by Wajid Malik

ECO401 ONLIN QUIZZ 3,,, FOR FINAL TERM

Q1. of 15 ( Start time: 01:51:04 AM ) Total Marks: 1

Which of the following events shifts the short-run aggregate supply curve to the right?

A decrease in the money supply

A drop in oil prices

An increase in government spending on military equipment An increase in price expectations

Q2. of 15 ( Start time: 01:51:12 AM ) Total Marks: 1

The percentage change in quantity demanded given a percentage change in consumer's income is known as:

Cross price elasticity.

Q3. of 15 ( Start time: 01:51:20 AM ) Total Marks: 1

Marginal utility is best described as:

The additional satisfaction gained by consumption of the last good. The per unit satisfaction of the good consumed. The total satisfaction gained from the total consumption of the good. The change in satisfaction from consuming one additional unit of the good.

Q4. of 15 ( Start time: 01:51:46 AM ) Total Marks: 1

To make the equation of exchange into the quantity theory of money:

V and Q are assumed to be constant. The money supply is assumed to be produced by the banking system and not exclusively in currency. The quantity of money is assumed to determine the amount of Real GDP. M and P are considered constant.

Q5. of 15 ( Start time: 01:51:53 AM ) Total Marks: 1

The figure that results when goods imports are subtracted from goods exports is:

The capital account balance. The balance of trade. Always greater than zero. Always less than zero.

Q6. of 15 ( Start time: 01:52:11 AM ) Total Marks: 1

Cartels are:

Organizations of independent firms, producing similar products, that work together to raise prices and restrict output Organizations of interdependent firms Oligopolies

All of the above

Q7. of 15 ( Start time: 01:52:17 AM ) Total Marks: 1

According to economy is always at full employment level. Economy would automatically find the new equilibrium in the short run.

True

False

Q8. of 15 ( Start time: 01:52:38 AM ) Total Marks: 1

The relationship between tax rates and total tax collections by government is known as:

Laffer curve. Demand curve. Supply curve. Investment curve.

Q9. of 15 ( Start time: 01:52:48 AM ) Total Marks: 1

In a perfectly competitive market:

Firms can freely enter and exit. Firms sell a differentiated product. Transaction costs are high. All of the given options.

Q11. of 15 ( Start time: 01:53:12 AM ) Total Marks: 1

AD curve slopes downward for both Keynes and classicals.

True

False

Q12. of 15 ( Start time: 01:53:28 AM ) Total Marks: 1

Which of the following statements describes increasing returns to scale:

Doubling the inputs used leads to double the output. Increasing the inputs by 50% leads to a 25% increase in output. Increasing inputs by 1/4 leads to an increase in output of 1/3. None of the given options.

Q13. of 15 ( Start time: 01:53:34 AM ) Total Marks: 1

In Keynesian economics, if aggregate expenditures are less than aggregate output then:

The price level rises. Inventories decrease. Employment decreases. Aggregate output increases.

Q14. of 15 ( Start time: 01:53:41 AM ) Total Marks: 1

A price taker is:

A firm that accepts different prices from different customers. A monopolistically competitive firm. A firm that cannot influence the market price. An oligopolistic firm.

Q15. of 15 ( Start time: 01:53:51 AM ) Total Marks: 1

Deflation is:

An increase in the overall level of economic activity. An increase in the overall price level. A decrease in the overall level of economic activity. A decrease in the overall price level.

Q1. of 15 ( Start time: 02:03:04 AM ) Total Marks: 1

The short run, as economists use the phrase, is characterised by:

All inputs being variable.