Eco401 Current quiz

Question # 1 of 15 ( Start time: 01:33:43 PM ) Total Marks: 1
Microeconomics is the branch of economics that deals with which of the following topics?
Select correct option:

The behavior of individual consumers
Unemployment and interest rates
The behavior of individual firms and investors
The behavior of individual consumers and behavior of individual firms and investors


Question # 2 of 15 ( Start time: 01:34:16 PM ) Total Marks: 1
Which of the following is true about the point on a nation's production-possibilities curve?
Select correct option:

It shows an undesirable combination of goods and services.
It shows the combinations of production that are unattainable, given current technology and resources.
It shows the level of production that will cause both unemployment and inflation.
It shows that resources are fully employed in producing a particular combination of goods and services.


Question # 3 of 15 ( Start time: 01:35:46 PM ) Total Marks: 1
The extra value that consumers receive above what they pay for that good is called:
Select correct option:

Producer surplus.
Utility.
Marginal utility.
Consumer surplus.



Question # 4 of 15 ( Start time: 01:37:07 PM ) Total Marks: 1
“Each firm produces an identical product and there is freedom of entry and exit”. This is TRUE for which of the following market structures?
Select correct option:

For Monopoly.
For Oligopoly.
For Perfect competition.
For Monopolistic competition.



Question # 5 of 15 ( Start time: 01:37:39 PM ) Total Marks: 1
The law of diminishing marginal utility states:
Select correct option:

The supply curve slopes upward.
Your utility grows at a slower and slower rate as you consume more and more units of a good.
The elasticity of demand is infinite.
None of the given options.


Question # 6 of 15 ( Start time: 01:38:23 PM ) Total Marks: 1
In a production process, all inputs are increased by 10%; but output increases more than 10%. This means that the firm experiences:
Select correct option:

Decreasing returns to scale.
Constant returns to scale.
Increasing returns to scale.
Negative returns to scale.


Question # 7 of 15 ( Start time: 01:39:16 PM ) Total Marks: 1
Marginal utility is best described as:
Select correct option:

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.

Question # 8 of 15 ( Start time: 01:40:46 PM ) Total Marks: 1
If the cross price elasticity of demand between two products is +3.5, then:
Select correct option:

One of the products is expensive and one is relatively inexpensive.
One product is a normal good and the other is an inferior good.
The two products are complements.
The two products are substitutes.

Question # 9 of 15 ( Start time: 01:41:27 PM ) Total Marks: 1
Price floor results in:
Select correct option:

Equilibrium.
Excess demand.
Excess supply.
All of the given options.

Question # 10 of 15 ( Start time: 01:43:01 PM ) Total Marks: 1
If we observe that the production possibilities curve becomes steeper as we move down along the curve, then:
Select correct option:

Opportunity costs are increasing.
Society's resources are limited.
Society's wants are unlimited.
Society's wants are unlimited.

Question # 11 of 15 ( Start time: 01:44:33 PM ) Total Marks: 1
Which of the following is true about the entrepreneur?
Select correct option:

An entrepreneur is an innovator.
An entrepreneur is someone who brings resources together and produces a product.
An entrepreneur is a risk taker.
All of the given options are correct.

Question # 12 of 15 ( Start time: 01:45:13 PM ) Total Marks: 1
A market is said to be in equilibrium when:
Select correct option:

Supply equals Price.
There is downward pressure on price.
The amount consumers wish to buy at the current price equals the amount producers wish to sell at that price.
All buyers are able to find sellers willing to sell to them at the current price.

Question # 13 of 15 ( Start time: 01:45:53 PM ) Total Marks: 1
The law of diminishing returns assumes:
Select correct option:

There are no fixed factors of production.
There are no variable factors of production.
Utility is maximised when marginal product falls.
Some factors of production are fixed.

Question # 14 of 15 ( Start time: 01:47:03 PM ) Total Marks: 1
Which of the following is not an assumption of ordinal utility analysis?
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Consumers are consistent in their preference.
Consumers can measure the total utility received from any given basket of good.
Consumers are non-satiated with respect to the goods they confront.
All are necessary.

Question # 15 of 15 ( Start time: 01:48:04 PM ) Total Marks: 1
Diminishing marginal returns implies:
Select correct option:

Decreasing marginal costs.
Increasing marginal costs.
Decreasing average variable costs.
Decreasing average fixed costs.