MGT411- Money

MCQ's Solved of MGT411- Money

Question No: 1 ( Marks: 1 ) - Please choose one

Which of the following is the final mode of payment?

► Money

► ATM

► Cheque

► Yet to discover

Question No: 2 ( Marks: 1 ) - Please choose one

Which of the following statement truly represents the main difference between debit card and store value card?

► Debit card is operated by ATM machine while Store value card doesn’t

► Debit card appearance is different from Store value card

► Debit card is not specific for user but store value card is specific

► Debit card is specific for user but store value card is not

Question No: 3 ( Marks: 1 ) - Please choose one

Which of the following statements is correct?

► If you can buy the same goods this year as you bought last year with less money the money supply decreased.

► To purchase the same goods today that were purchased one year ago requires more money, there must have been inflation

► To purchase the same goods today as one year ago requires less money, the money supply must have increased

► To purchase the same goods today that were purchased one year ago requires the same amount of money, there must have been inflation

Question No: 4 ( Marks: 1 ) - Please choose one

Which of the following is the difference that lies between the options and futures?

► Options is not binding whereas future is binding

► Futures carry risks but Options didn’t carry risk

► Centralized clearinghouses guarantee futures but not options contracts

► There is no difference between options and futures

Question No: 5 ( Marks: 1 ) - Please choose one

Which of the following describes the general formula for the calculation of the compound interest?

► FV ₌ PV/(1+i) ⁿ

► FV ₌ PV/(1-i) ⁿ

► FV ₌ PV*(1+i) ⁿ

► FV ₌ PV*(1-i) ⁿ

Question No: 6 ( Marks: 1 ) - Please choose one

What is true about the relationship between standard deviation and risk?

► Greater the standard deviation greater will be the risk

► Greater the standard deviation lower will be the risk

► Greater the standard deviation risk will be remained the same

► No relation between them

Question No: 7 ( Marks: 1 ) - Please choose one

Current yield is equal to which of the following?

► Price paid / yearly coupon payment

► Price paid *yearly coupon payment

► Yearly coupon payment / face value of bond

► Yearly coupon payment / price paid

Question No: 8 ( Marks: 1 ) - Please choose one

The risk premium of a bond will:

► Higher for investment-grade bonds than for high-yield bonds

► Positive but small if the risk of default is zero

► Decrease when the default risk rises

► Increase when the risk of default rises

Question No: 9 ( Marks: 1 ) - Please choose one

Requiring a large deductible on the part of an insured is one way insurers treat the problem of:

► Free-riding

► Moral hazard

► Adverse selection

► The Lemons market

Question No: 10 ( Marks: 1 ) - Please choose one

Which of the following does not include in marketable securities?

► Common stocks

► Bonds of the U.S. Treasury

► Treasury Bills

► Non transaction deposits

Question No: 11 ( Marks: 1 ) - Please choose one

___________ is a component of the liability side of the commercial bank’s balance sheet.

► Deposits

► Loans

► Securities

► All of the given options

Question No: 12 ( Marks: 1 ) - Please choose one

A stand by letter of credit is a form of:

► Loan

► Insurance

► Security

► Deposits

Question No: 13 ( Marks: 1 ) - Please choose one

Funds of depository institution are primarily used in which of the following?

► Corporate bonds, Government bonds, Stocks, Mortgage

► Cash, Loan, Securities

► Stocks, Government bonds, corporate bonds, commercial papers

► Commercial papers, Bonds

Question No: 14 ( Marks: 1 ) - Please choose one

Securities firms include _________.

► Brokerage firms

► Investment banks

► Mutual fund companies

► All of the given options

Question No: 15 ( Marks: 1 ) - Please choose one

_________is the combination of the term life insurance and savings account.

► Property insurance

► Health insurance

► Whole life insurance

► Casualty insurance

Question No: 16 ( Marks: 1 ) - Please choose one

Which of the following is a Primary source of funds of Finance company?

► Bonds

► Policy benefits to be paid out to futures

► Loan guarantees

► Shares sold to customers

Question No: 17 (Marks: 1) - Please choose one

What matters most during a bank run is _________________.

► The liquidity of the bank

► The solvency of the bank

► The number of depositors

► Safety of bank

Question No: 18 ( Marks: 1 ) - Please choose one

Khushhali bank is:

► A Finance company

► A Securities firm

► A Government sponsored enterprise

► An insurance company

Question No: 19 ( Marks: 1 ) - Please choose one

Under the purchase and assumption method of dealing with a failed bank, the FDIC ______________.

► Sells the failed bank to the Federal Reserve

► Finds another bank to take over the insolvent bank

► Takes over the day to day management of the bank

► Sells off the profitable loans of the failed bank in an open auction

Question No: 20 ( Marks: 1 ) - Please choose one

On which of the following success of monetary policy depends upon?

► It may be on the chance or by luck

► The institutional environment

► Competent people in responsible positions

► Both the institutional environment and Competent people in responsible positions

Question No: 21 ( Marks: 1 ) - Please choose one

For the Federal Reserve, the largest liability on their balance sheet is ________.

► Non-bank currency

► Reserves

► Government accounts

► Treasury certificates

Question No: 22 ( Marks: 1 ) - Please choose one

An open market purchase of U.S. Treasury securities by the Fed will cause the Fed's balance sheet to show _________.

► A decrease in the asset of securities and a decrease in the liability of reserves

► A decrease in the liability of reserves

► No change in the size of balance sheet except composition of assets

► An increase in the asset category of securities and the liability category of reserves

Automata quiz fall 2009

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QUIZ 1

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Quiz Start Time: 06:37 AM

Time Left 19

sec(s)

Question # 1 of 10 ( Start time: 06:37:52 AM ) Total Marks: 1

While finding RE corresponding to TG, If TG has more than one final state then

Select correct option:

Introduce the new final state

Eliminate the old final state

Replace the old final state with start state

Replace the old final state with new start state

Quiz Start Time: 06:37 AM

Time Left 60

sec(s)

Question # 2 of 10 ( Start time: 06:39:16 AM ) Total Marks: 1

If two RE’s generate same language then these RE’s are called

Select correct option:

Same RE

Equal RE

Similar RE

Equivalent RE

Quiz Start Time: 06:37 AM

Time Left 28

sec(s)

Question # 3 of 10 ( Start time: 06:39:53 AM ) Total Marks: 1

Which of the following statement is NOT true?

Select correct option:

FA can be considered to be an NFA

FA can be considered to be an NFA with null string

NFA can be considered to be an TG

TG can be considered to be an NFA

Quiz Start Time: 06:37 AM

Time Left 82

sec(s)

Question # 4 of 10 ( Start time: 06:41:17 AM ) Total Marks: 1

Two FAs are said to be equivalent, if they

Select correct option:

accept null string

accept same language

accept different language

none of the given options

Quiz Start Time: 06:37 AM

Time Left 77

sec(s)

Question # 5 of 10 ( Start time: 06:41:34 AM ) Total Marks: 1

The language having even number of a’s and even number of b’s defined over S = {a, b}

is called

Select correct option:

EVEN-EVEN

ODD-ODD

PALINDROME

FACTORIAL

Quiz Start Time: 06:37 AM

Time Left 72

sec(s)

Question # 6 of 10 ( Start time: 06:41:54 AM ) Total Marks: 1

Is the language {a ab aba bab} regular?

Select correct option:

Yes

No

Quiz Start Time: 06:37 AM

Time Left 41

sec(s)

Question # 7 of 10 ( Start time: 06:42:18 AM ) Total Marks: 1

Let FA3 be an FA corresponding to FA1+FA2, then the initial state of FA3 must

correspond to the initial state of

Select correct option:

FA1 only

FA2 only

FA1 or FA2

FA1 and FA2

Quiz Start Time: 06:37 AM

Time Left 69

sec(s)

Question # 8 of 10 ( Start time: 06:43:21 AM ) Total Marks: 1

According to theory of automata there are _________ types of languages

Select correct option:

One

Two

Three

Four

Quiz Start Time: 06:37 AM

Time Left 32

sec(s)

Question # 9 of 10 ( Start time: 06:43:47 AM ) Total Marks: 1

What is false about the term alphabet?

Select correct option:

It is a finite set of symbols.

It is usually denoted by Greek letter sigma

It can be an empty set.

Strings are made up of its elements.

Quiz Start Time: 06:37 AM

Time Left 38

sec(s)

Question # 10 of 10 ( Start time: 06:44:54 AM ) Total Marks: 1

Every FA is a TG.

Select correct option:

True

False

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QUIZ 2

=============================

Quiz Start Time: 06:46 AM

Time Left 19

sec(s)

Question # 1 of 10 ( Start time: 06:46:26 AM ) Total Marks: 1

While finding RE corresponding to TG, we connect the new start state to the old start

state by the transition labeled by

Select correct option:

a

b

null string

None of the given options

Quiz Start Time: 06:46 AM

Time Left 84

sec(s)

Question # 2 of 10 ( Start time: 06:47:52 AM ) Total Marks: 1

What is false about the term alphabet?

Select correct option:

It is a finite set of symbols.

It is usually denoted by Greek letter sigma

It can be an empty set.

Strings are made up of its elements.

Quiz Start Time: 06:46 AM

Time Left 78

sec(s)

Question # 3 of 10 ( Start time: 06:48:05 AM ) Total Marks: 1

If S = {aa, bb}, then S* will not contain

Select correct option:

aabbaa

bbaabbbb

aaabbb

aabbbb

Quiz Start Time: 06:46 AM

Time Left 31

sec(s)

Question # 4 of 10 ( Start time: 06:48:28 AM ) Total Marks: 1

(a* + b*)* = (a + b)* this expression is __________

Select correct option:

True

False

Quiz Start Time: 06:46 AM

Time Left 84

sec(s)

Question # 5 of 10 ( Start time: 06:49:55 AM ) Total Marks: 1

Length of EVEN-EVEN language is _________

Select correct option:

Even

Odd

Sometimes even & sometimes odd

Such language doesn’t exist

Quiz Start Time: 06:46 AM

Time Left 21

sec(s)

Question # 6 of 10 ( Start time: 06:50:08 AM ) Total Marks: 1

What is false about the PALINDROME LANGUAGE?

Select correct option:

Every word is reverse of itself.

It is an infinite language.

FA can be build for it.

None of the given option

Quiz Start Time: 06:46 AM

Time Left 61

sec(s)

Question # 7 of 10 ( Start time: 06:51:33 AM ) Total Marks: 1

The states in which there is no way to leave after entry are called

Select correct option:

Davey John Lockers

Dead States

Waste Baskets

All of the given options

Quiz Start Time: 06:46 AM

Time Left 86

sec(s)

Question # 8 of 10 ( Start time: 06:52:09 AM ) Total Marks: 1

Automata is the plural of

Select correct option:

Automate

Automaton

Quiz Start Time: 06:46 AM

Time Left 78

sec(s)

Question # 9 of 10 ( Start time: 06:52:19 AM ) Total Marks: 1

If S = {a, b} then which of the following RE will generate all possible strings

Select correct option:

a* + b*

(ab)*

(a + b)*

(ab + ba)*

Quiz Start Time: 06:46 AM

Time Left 68

sec(s)

Question # 10 of 10 ( Start time: 06:52:39 AM ) Total Marks: 1

FA is also called

Select correct option:

TG

GTG

NFA

DFA

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QUIZ 3

=============================

Quiz Start Time: 06:53 AM

Time Left 18

sec(s)

Question # 1 of 10 ( Start time: 06:53:40 AM ) Total Marks: 1

Every non deterministic Finite Automata can be converted into

Select correct option:

Regular Expression

Deterministic Finite Automata

Trasition Graph

All of the given options

Quiz Start Time: 06:53 AM

Time Left 81

sec(s)

Question # 2 of 10 ( Start time: 06:54:59 AM ) Total Marks: 1

What is false about the PALINDROME LANGUAGE?

Select correct option:

Every word is reverse of itself.

It is an infinite language.

FA can be build for it.

None of the given option

Quiz Start Time: 06:53 AM

Time Left 47

sec(s)

Question # 3 of 10 ( Start time: 06:56:26 AM ) Total Marks: 1

Let FA3 be an FA corresponding to FA1FA2, then the initial state of FA3 must

correspond to the initial state of

Select correct option:

FA1 only

FA2 only

FA1 or FA2

FA1 and FA2

Quiz Start Time: 06:53 AM

Time Left 86

sec(s)

Question # 4 of 10 ( Start time: 06:57:16 AM ) Total Marks: 1

The language having even number of a’s and even number of b’s defined over S = {a, b}

is called

Select correct option:

EVEN-EVEN

ODD-ODD

PALINDROME

FACTORIAL

Quiz Start Time: 06:53 AM

Time Left 4

sec(s)

Question # 7 of 10 ( Start time: 07:12:16 AM ) Total Marks: 1

FA corresponding to an NFA can be built by introducing an empty state for a letter

having

Select correct option:

no transition at certain state

one transition at certain state

two transition at certain state

more than two transitions at certain state

Quiz Start Time: 06:53 AM

Time Left 51

sec(s)

Question # 8 of 10 ( Start time: 07:13:45 AM ) Total Marks: 1

Closure of an FA, is same as ___________ of an FA with itself, except that the initial

state of the required FAis a final state as well.

Select correct option:

Union

Sum

Concatenation

Intersection

Quiz Start Time: 06:53 AM

Time Left 73

sec(s)

Question # 9 of 10 ( Start time: 07:14:27 AM ) Total Marks: 1

Which of the following statement is NOT true?

Select correct option:

FA can be considered to be an NFA

FA can be considered to be an NFA with null string

NFA can be considered to be an TG

TG can be considered to be an NFA

Quiz Start Time: 06:53 AM

Time Left 82

sec(s)

Question # 10 of 10 ( Start time: 07:14:46 AM ) Total Marks: 1

While finding RE corresponding to TG, we connect the new start state to the old start

state by the transition labeled by

Select correct option:

a

b

null string

None of the given options

=============================

QUIZ 4

=============================

Quiz Start Time: 07:16 AM

Time Left 24

sec(s)

Question # 1 of 10 ( Start time: 07:16:42 AM ) Total Marks: 1

FA corresponding to an NFA can be built by introducing a state corresponding to the

combination of states, for a letter having

Select correct option:

no transition at certain state

one transition at certain state

more than one transitions at certain state

none of the given options

Quiz Start Time: 07:16 AM

Time Left 72

sec(s)

Question # 2 of 10 ( Start time: 07:17:56 AM ) Total Marks: 1

Formal is also known as _________

Select correct option:

Syntactic language

Semantic language

Informal language

None of these

Quiz Start Time: 07:16 AM

Time Left 82

sec(s)

Question # 3 of 10 ( Start time: 07:18:18 AM ) Total Marks: 1

Every non deterministic Finite Automata can be converted into

Select correct option:

Regular Expression

Deterministic Finite Automata

Trasition Graph

All of the given options

Quiz Start Time: 07:16 AM

Time Left 50

sec(s)

Question # 4 of 10 ( Start time: 07:18:32 AM ) Total Marks: 1

Which of the following regular expression represents same language? a. (a+ab)* b.

(ba+a)* c. a*(aa*b)* d. (a*b*)*

Select correct option:

a and b

a and c

c and d

All of the given options

Quiz Start Time: 07:16 AM

Time Left 80

sec(s)

Question # 5 of 10 ( Start time: 07:19:49 AM ) Total Marks: 1

Does the empty string match the regular expression “y+a”?

Select correct option:

Yes

No

Quiz Start Time: 07:16 AM

Time Left 85

sec(s)

Question # 6 of 10 ( Start time: 07:20:07 AM ) Total Marks: 1

Let FA3 be an FA corresponding to FA1FA2, then the final state of FA3 must correspond

to the final state of

Select correct option:

FA1 only

FA2 only

FA1 or FA2

FA1 and FA2

Quiz Start Time: 07:16 AM

Time Left 39

sec(s)

Question # 7 of 10 ( Start time: 07:20:20 AM ) Total Marks: 1

What is false about the PALINDROME LANGUAGE?

Select correct option:

Every word is reverse of itself.

It is an infinite language.

FA can be build for it.

None of the given option

Quiz Start Time: 07:16 AM

Time Left 64

sec(s)

Question # 8 of 10 ( Start time: 07:21:35 AM ) Total Marks: 1

If R is a regular language and L is some language, and L U R is a regular language, then

L must be a regular language.

Select correct option:

True

False

Quiz Start Time: 07:16 AM

Time Left 64

sec(s)

Question # 9 of 10 ( Start time: 07:22:07 AM ) Total Marks: 1

Kleene star closure can be defined

Select correct option:

Over any set of string

Over specific type of string

Quiz Start Time: 07:16 AM

Time Left 78

sec(s)

Question # 10 of 10 ( Start time: 07:22:37 AM ) Total Marks: 1

If S = { x }, then S* will be

Select correct option:

{x,xx,xxx,xxxx,…}

{^ ,x,xx,xxx,xxxx,…}

MCQ's for ECO401 - Economics

Goods X and Y are complements while goods X and Z are substitutes. If the supply of good X increases:
Select correct option:
The demand for both Y and Z will increase
The demand for Y will increase while the demand for Z will decrease
The demand for Y will decrease while the demand for Z will increase
The demand for both Y and Z will decrease

A normative economic statement:
Select correct option:
Is a statement of fact.
Is a hypothesis used to test economic theory.
Is a statement of what ought to be, not what is.
Is a statement of what will occur if certain assumptions are true.

when the price of petrol rises 10%, the quantity of petrol purchased falls by 8%. The demand for petrol is:
Select correct option:
Perfectly elastic
Unit elastic
Elastic
Inelastic

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.

Assume Leisure is a normal good. If income effect equals substitution effect then a wage rate increase will lead a person to:
Select correct option:
Increase hours of work
Decrease hours of work
Not change hours of work
None of the given options

The burden of a tax is shifted toward buyers if:
Select correct option:
Demand is perfectly elastic.
Demand is relatively more elastic than supply.
Demand is relatively more inelastic than supply.
Demand and supply have equal elasticities.

Assume that the government sets a ceiling on the interest rate that banks charge on loans. If the ceiling is set below the market equilibrium interest rate, the result will be:
Select correct option:
A surplus of credit.
A shortage of credit.
Greater profits for banks issuing credit.
A perfectly inelastic supply of credit in the market place.

You observe that the price of houses and the number of houses purchased both rise over the course of the year. You conclude that:
Select correct option:
The demand for houses has increased
The demand curve for houses must be upward-sloping
The supply of houses has increased
Housing construction costs must be decreasing

When drawing demand and supply curves, economists are assuming that the primary influence on production and purchasing decisions is:
Select correct option:
Price
Cost of production
The overall state of the economy
Consumer incomes

the ____________________ is a graph of the ____________________ of a good and the ____________________.
Select correct option:
Supply curve, price, quantity supplied
Demand curve, price, quantity supplied
Supply curve, price, quantity demanded
Supply curve, quantity supplied, income of consumers

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.

It is calculated as the percentage change in quantity demanded of a given good, with respect to the percentage change in the price of “another” good.
Select correct option:
Price elasticity of demand
Income elasticity of demand
rice elasticity of demandCross p
Supply price elasticity

The concept of a risk premium applies to a person that is:
Select correct option:
Risk averse
Risk neutral
Risk loving
All of the given options

Demand is elastic when the elasticity of demand is:
Select correct option:
Greater than 0
Greater than 1
Less than 1
Less than 0

A "Giffen good" is defined as one for which:
Select correct option:
Marginal utility is zero.
The demand curve is perfectly elastic.
The substitution effect is positive.
The demand curve is positively sloped.

Goods X and Y are complements while goods X and Z are substitutes. If the supply of good X increases:
Select correct option:
The demand for both Y and Z will increase
The demand for Y will increase while the demand for Z will decrease
The demand for Y will decrease while the demand for Z will increase
The demand for both Y and Z will decrease

A normative economic statement:
Select correct option:
Is a statement of fact.
Is a hypothesis used to test economic theory.
Is a statement of what ought to be, not what is.
Is a statement of what will occur if certain assumptions are true.

when the price of petrol rises 10%, the quantity of petrol purchased falls by 8%. The demand for petrol is:
Select correct option:
Perfectly elastic
Unit elastic
Elastic
Inelastic

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.

Assume Leisure is a normal good. If income effect equals substitution effect then a wage rate increase will lead a person to:
Select correct option:
Increase hours of work
Decrease hours of work
Not change hours of work
None of the given options

The burden of a tax is shifted toward buyers if:
Select correct option:
Demand is perfectly elastic.
Demand is relatively more elastic than supply.
Demand is relatively more inelastic than supply.
Demand and supply have equal elasticities.

Assume that the government sets a ceiling on the interest rate that banks charge on loans. If the ceiling is set below the market equilibrium interest rate, the result will be:
Select correct option:
A surplus of credit.
A shortage of credit.
Greater profits for banks issuing credit.
A perfectly inelastic supply of credit in the market place.

You observe that the price of houses and the number of houses purchased both rise over the course of the year. You conclude that:
Select correct option:
The demand for houses has increased
The demand curve for houses must be upward-sloping
The supply of houses has increased
Housing construction costs must be decreasing

When drawing demand and supply curves, economists are assuming that the primary influence on production and purchasing decisions is:
Select correct option:
Price
Cost of production
The overall state of the economy
Consumer incomes

the ____________________ is a graph of the ____________________ of a good and the ____________________.
Select correct option:
Supply curve, price, quantity supplied
Demand curve, price, quantity supplied
Supply curve, price, quantity demanded
Supply curve, quantity supplied, income of consumers

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.

It is calculated as the percentage change in quantity demanded of a given good, with respect to the percentage change in the price of “another” good.
Select correct option:
Price elasticity of demand
Income elasticity of demand
Cross price elasticity of demand
Supply price elasticity

The concept of a risk premium applies to a person that is:
Select correct option:
Risk averse
Risk neutral
Risk loving
All of the given options

Demand is elastic when the elasticity of demand is:
Select correct option:
Greater than 0
Greater than 1
Less than 1
Less than 0

A "Giffen good" is defined as one for which:
Select correct option:
Marginal utility is zero.
The demand curve is perfectly elastic.
The substitution effect is positive.
The demand curve is positively sloped.

If your demand price for one unit of a good is $100 and the market price is $75, your consumer's surplus is:
Select correct option:

$25
$50
$75
$100


Due to capacity constraints, the price elasticity of supply for most products is:
Select correct option:

The same in the long run and the short run.
Greater in the long run than in the short run.
Greater in the short run than in the long run.
Too uncertain to be estimated.

A schedule which shows the various amounts of a product consumers are willing and able to purchase at each price in a series of possible prices during a specified period of time is called:
Select correct option:

Supply
Demand
Quantity supplied
Quantity demanded


If the cost of computer components falls, then
Select correct option:

The demand curve for computers shifts to the right.
The demand curve for computers shifts to the left.
The supply curve for computers shifts to the right
The supply curve for computers shifts to the left

If a sales tax on beer leads to reduced tax revenue, this means:
Select correct option:

Elasticity of demand is <>
Elasticity of demand is > 1.
Demand is upward-sloping.
Demand is perfectly inelastic.

If there is a price ceiling, there will be:
Select correct option:

Shortages
Surpluses
Equilibrium
None of the given options.

The numerical measurement of a consumer’s preference is called:
Select correct option:

Satisfaction
Use
Pleasure
Utility

If a decrease in price increases total revenue:
Select correct option:

Demand is elastic
Demand is inelastic
Supply is elastic
Supply is inelastic

It is calculated as the percentage change in quantity demanded of a given good, with respect to the percentage change in the price of “another” good.
Select correct option:

Price elasticity of demand
Income elasticity of demand
Cross price elasticity of demand
Supply price elasticity

Assume Leisure is a normal good. If income effect equals substitution effect then a wage rate increase will lead a person to:
Select correct option:

Increase hours of work
Decrease hours of work
Not change hours of work
None of the given options

The price elasticity of supply shows us:
Select correct option:

How steep the supply curve is
How fast supply responds to price
How much supply shifts when income changes
How much quantity supplied responds to price changes

More output could be produced with available resources if:
Select correct option:

Resources are allocated efficiently
Resources are imperfectly shiftable among alternative uses
Prices are reduced
The economy is operating at a point inside the production possibilities curve.



The marginal rate of substitution is equal to the:
Select correct option:

Magnitude of the slope of the indifference curve
Relative price
Marginal cost of each good
Slope of the budget line

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

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

All inputs being variable.
At least one fixed factor of production and firms neither leaving nor entering the industry.
No variable inputs - that is, all of the factors of production are fixed.
A period where the law of diminishing returns does not hold.

If marginal product is above the average product:
Select correct option:
The total product will fall
The average product will rise
Average variable costs will fall
Total revenue will fall

According the law of diminishing returns:
Select correct option:
The marginal product falls as more units of a variable factor are added to a fixed factor.
Marginal utility falls as more units of a product are consumed.
The total product falls as more units of a variable factor are added to a fixed factor.
The marginal product increases as more units of a variable factor are added to a fixed factor.

the substitution effect of a price decrease for a good with a normal indifference curve pattern:
Select correct option:
Is always inversely related to the price change.
Measures the change in consumption of the good that is due to the consumer’s feeling of being richer.
Is measured by the horizontal distance between the original and the new indifference curves.
Is sufficient information to plot an ordinary demand curve for the commodity being considered.

he ____________________ is a graph of the ____________________ of a good and the ____________________.
Select correct option:
Supply curve, price, quantity supplied
Demand curve, price, quantity supplied
Supply curve, price, quantity demanded
Supply curve, quantity supplied, income of consumers

When an industry's raw material costs increase, other things remaining the same:
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The supply curve shifts to the left.
The supply curve shifts to the right.
Output increases regardless of the market price and the supply curve shifts upward.
Output decreases and the market price also decrease.

in a free-market economy the allocation of resources is determined by:
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Votes taken by consumers
A central planning authority
By consumer preferences
The level of profits of firms

Moving from left to right, the typical production possibilities curve:
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Has a constant negative slope
Has a constant positive slope
Illustrates increasing opportunity costs
Illustrates decreasing opportunity costs

it is calculated as the percentage change in quantity demanded of a given good, with respect to the percentage change in the price of “another” good.
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Price elasticity of demand
Income elasticity of demand
Cross price elasticity of demand
Supply price elasticity

If your demand price for one unit of a good is $100 and the market price is $75, your consumer's surplus is:
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$25
$50
$75
$100

Average physical product is equal to:
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TPPF
TPPF/QF
QF / TPPF
TPPF * QF

A partial explanation for the inverse relationship between price and quantity demanded is that a:
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Lower price shifts the supply curve to the left
Higher price shifts the demand curve to the left
Lower price shifts the demand curve to the right
Higher price reduces the real incomes of buyers

Due to capacity constraints, the price elasticity of supply for most products is:
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The same in the long run and the short run.
Greater in the long run than in the short run.
Greater in the short run than in the long run.
Too uncertain to be estimated.

lthough there are many reasons why a market can be non-competitive, the principal economic difference between a competitive and a non-competitive market is:
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The number of firms in the market.
The extent to which any firm can influence the price of the product.
The size of the firms in the market.
The annual sales made by the largest firms in the market.

The law of diminishing marginal utility states:
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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.

If your demand price for one unit of a good is $100 and the market price is $75, your consumer's surplus is:
Select correct option:

$25
$50
$75
$100

Due to capacity constraints, the price elasticity of supply for most products is:
Select correct option:

The same in the long run and the short run.
Greater in the long run than in the short run.
Greater in the short run than in the long run.
Too uncertain to be estimated.

A schedule which shows the various amounts of a product consumers are willing and able to purchase at each price in a series of possible prices during a specified period of time is called:
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Supply
Demand
Quantity supplied
Quantity demanded

If the cost of computer components falls, then
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The demand curve for computers shifts to the right.
The demand curve for computers shifts to the left.
The supply curve for computers shifts to the right
The supply curve for computers shifts to the left

If a sales tax on beer leads to reduced tax revenue, this means:
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Elasticity of demand is < 1.
Elasticity of demand is > 1.
Demand is upward-sloping.
Demand is perfectly inelastic.

If there is a price ceiling, there will be:
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Shortages
Surpluses
Equilibrium
None of the given options.

The numerical measurement of a consumer’s preference is called:
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Satisfaction
Use
Pleasure
Utility

If a decrease in price increases total revenue:
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Demand is elastic
Demand is inelastic
Supply is elastic
Supply is inelastic

It is calculated as the percentage change in quantity demanded of a given good, with respect to the percentage change in the price of “another” good.
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Price elasticity of demand
Income elasticity of demand
Cross price elasticity of demand
Supply price elasticity

Assume Leisure is a normal good. If income effect equals substitution effect then a wage rate increase will lead a person to:
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Increase hours of work
Decrease hours of work
Not change hours of work
None of the given options


The price elasticity of supply shows us:
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How steep the supply curve is
How fast supply responds to price
How much supply shifts when income changes
How much quantity supplied responds to price changes


More output could be produced with available resources if:
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Resources are allocated efficiently
Resources are imperfectly shiftable among alternative uses
Prices are reduced
The economy is operating at a point inside the production possibilities curve.

The marginal rate of substitution is equal to the:
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Magnitude of the slope of the indifference curve
Relative price
Marginal cost of each good
Slope of the budget line

Marginal utility is best described as:
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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

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

All inputs being variable.
At least one fixed factor of production and firms neither leaving nor entering the industry.
No variable inputs - that is, all of the factors of production are fixed.
A period where the law of diminishing returns does not hold.

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