Kindly do make vuhelps your default page and keep viewing it to get up to date information about current fresh exams. Also follow the blog. Send your papers to make them here uptodate at email@example.com or feel free to call at 03455242488
Question No: 1 ( Marks: 1 ) - Please choose one
In a free-market economy, the allocation of resources is determined by:
► Votes taken by consumers.
► A central planning authority.
► Consumer preferences.
► The level of profits of firms.
Question No: 2 ( Marks: 1 ) - Please choose one
The concave shape of the production possibilities curve for two goods X and Y illustrates:
► Increasing opportunity cost for both goods.
► Increasing opportunity cost for good X but not for good Y.
► Increasing opportunity cost for good Y but not for good X.
► Constant opportunity cost for both goods.
Question No: 3 ( Marks: 1 ) - Please choose one
If the quantity demanded of a product is greater than the quantity supplied of a product, then:
► There is a shortage of the product.
► There is a surplus of the product.
► The product is a normal good.
► The product is an inferior good.
Question No: 4 ( Marks: 1 ) - Please choose one
The supply curve is upward-sloping because:
► As the price increases, consumers demand less.
► As the price increases, suppliers can earn higher levels of profit or justify higher marginal costs to produce more.
► None of the given options.
► As the price increases, so do costs.
Question No: 5 ( Marks: 1 ) - Please choose one
When an industry's raw material costs increase, other things remaining the same:
► 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.
► The supply curve shifts to the left.
Question No: 6 ( Marks: 1 ) - Please choose one
When the price of petrol rises by 12%, the quantity of petrol purchased falls by 8%. This shows that the demand for petrol is:
► Perfectly elastic.
► Unit elastic.
Question No: 7 ( Marks: 1 ) - Please choose one
Suppose price rises from $15 to $17 and quantity demanded decreases by 20%. We can conclude:
► Demand is unitary elastic.
► Demand is elastic.
► The elasticity of demand is 2.
► Total revenue will decrease.
Question No: 8 ( Marks: 1 ) - Please choose one
"Utility" is most closely related to the term:
Question No: 9 ( Marks: 1 ) - Please choose one
When the marginal utility of a good is zero, this implies that:
► The consumer would not spend any additional income to buy more of that good.
► Consumption of additional units would have positive marginal utility.
► Total utility is minimized.
► Total utility is also zero.
Question No: 10 ( Marks: 1 ) - Please choose one
When the substitution effect of a lowered price is counteracted by the income effect, the good in question is:
► An inferior good.
► A substitute good.
► An independent good.
► A normal good.