MGT610 Quiz 2 File 1 January 2024 by Miss Mehwish

Past Papers for Mids./Finals are also Available

1. A private property system and a voluntary exchange system are the components of:

• A) Political right system
• B) Command system
• C) Communitarian system
• D) Free market system

Correct option: D) Free market system

Q2. Which principles explain the movement towards the equilibrium point?

• A) Principle of diminishing marginal utility
• B) Principle of diminishing marginal utility
• C) Both of the above
• D) Principle of increasing marginal costs

Correct option: C) Both of the above

3. In a command economy, all decisions are taken by the:

• A) People
• B) Workers
• C) Voters
• D) Government

Correct option: D) Government

Q4. Who presented the theory of absolute advantage?

• B) Friedrich A. Hike
• C) Murray Rothbard
• D) Eric Mack

Correct option: A) Adam Smith

Q5. Who is called the father of modern economics?

• B) John Locke
• C) John Maynard Keynes
• D) Karl Marx

Correct option: A) Adam Smith

6. Naturalistic Fallacy refers to:

• A) Everything that is good must be natural
• B) Everything that is good must be natural
• C) If something happens naturally is always good
• D) None of the given options

Correct option: D) None of the given options

Q7. In the recent times, Korea has developed the vehicle manufacturing capability that is best in the world. What type of country-specific advantage is it as classified by Adam Smith?

• A) Absolute advantage
• B) Natural advantage
• C) None of the given options

Correct option: A) Absolute advantage

Q8. Locke's views on property rights have become the source of which amendment in American law?

• A) Fourth Amendment
• B) Sixth Amendment
• C) Fifth Amendment
• D) Second Amendment

Correct option: C) Fifth Amendment

9. The price that just covers the costs of producing the commodity, including the going rate of profit obtainable in other markets is known as:

• A) None of the given options
• B) Selling Price
• C) Buying Price
• D) Natural Price

Correct option: D) Natural Price

Q10. Which one of the following is a component of free market systems?

• A) None of the given options
• B) Private property system
• C) Command system
• D) Involuntary exchange system

Correct option: B) Private property system