ECO402 Midterm MCQs by VU Topper RM

Which of the following statements is correct?

A. Car and petrol are substitute goods. B. Butter and margarine are examples of substitute goods. C. Tea and coffee are complementary goods. D. Butter and margarine are examples of complement goods.

Which of the following is a branch of economics that deals with observations of real economic facts?

A. Welfare economics B. All of the given options C.

Positive economics

D. Normative economics

The supply curve slopes upward demonstrating that at: A. Lower prices firms will increase output. B. Higher prices firms will decrease output. C. D. Higher prices firms will increase output.

Since Tea and coffee are considered as substitutes, the cross price elasticity of demand for tea and coffee will be: A. Negative B. Infinity C. zero D.

Positive

Aslam consumes more of a good due to increase in his income. For Aslam, this good is categorized as: A. Inferior B. Public C.

Normal

D. Giffen

When the cost of labor decreases then it will lead to shift in: A. B. C. D.

When the cost of raw material decreases then it will lead to shift in: A. B. C. D.

Which of the following will cause the demand curve for Apple to shift to the left?

A. Decrease in the price of complements B. Increase in taste and preferences C.

Decrease in taste and preference

D. Increase in income

When we study behavior of an individual of any society that means we are doing study of ________ Economics. A. Macro B. Financial C. Managerial D.

Micro

A geographically defined area where buyers and sellers interact to determine the price of a product is called: A. Club B. Stadium C. bank D.

market

increases then it will Shift the: A. B. Demand curve of petrol towards right. C. D.

Suppose a college professor opens an academy for the coaching classes. He hires three more teachers with him. The college professor would most likely be which of the following factors of production? A. Land B. Labor C. Capital D.

Entrepreneurship

Which of the following statements is correct?

A. Income elasticity of demand for normal goods is negative. B. Cross elasticity of demand for substitutes is negative. C. Cross elasticity of demand for substitutes is positive. D. Income elasticity of demand for inferior goods is positive.

OPEC is an example of: A. Illegal market B.

Non-competitive market

C. Competitive market D.

Responsiveness of percentage change in quantity demanded of one good due to one percentage change in price of another good is familiarly known as_______ elasticity of demand. A. Price B.

Cross-price

C. Income D. Point price

Suppose the price of meat remains constant. Which of the following will happen as a result of decrease in consumer’s income?

A. Supply curve of meat shifts towards right. B. Demand curve of meat shifts towards left.