ECO401 Online Quiz No. 3

by **kamran** Fri Jun 24, 2011 4:43 am

Online Quiz (No.03) Announcement
Quiz will cover Video Lecture no. 01 to 32

Schedule
Opening Date and Time June 23, 2011 At 12:01 AM (Mid-Night)
Closing Date and Time June 27, 2011 At 11:59 PM (Mid-Night)

by Nilofer Bugti Mon Jun 27, 2011 12:35 pm

ECO401 Quiz No. 3

Question # 1 of 15 ( Start time: 10:55:21 AM ) Total Marks: 1
unlike the classical economists, Keynes believed that the economy could get stuck in the short run for a significant period of time because:
Select correct option:
There was insufficient aggregate supply
There was insufficient aggregate demand
The self correcting mechanisms worked too quickly
The government purchased too many goods and ser

Question # 2 of 15 ( Start time: 10:56:53 AM ) Total Marks: 1
When oligopolists collude, they are able to:
Select correct option:
Raise price, but not restrict output
Raise price and restrict output, but not attain the mo
Raise price and restrict output, and therefore attain
Restrict output, but not raise price

Question # 3 of 15 ( Start time: 10:57:36 AM ) Total Marks: 1
Which of the following is considered to be a variable cost in the long run?
Select correct option:

Expenditures for wages.
Expenditures for research and development.
Expenditures for raw materials.
All of the given Costs.

Question # 4 of 15 ( Start time: 10:58:39 AM ) Total Marks: 1
Under New Classical macroeconomics monetary policy:
Select correct option:
Affects the level of equilibrium output
Affects the composition of equilibrium output
Affects both the level and composition of equilibrium
None of the given options

Question # 5 of 15 ( Start time: 11:00:06 AM ) Total Marks: 1
The principle that states that a change in investment causes a magnified change in income is termed as the:
Select correct option:
Water paradox.

Paradox of thrift.
Saving theorem.
Multiplier effect.

Question # 6 of 15 ( Start time: 11:01:32 AM ) Total Marks: 1
Assume that the current market price is below the market clearing level. We would expect: Select correct option:
A surplus to accumulate.
Downward pressure on the current market price.
Upward pressure on the current market price.
Lower production during the next time period.

Question # 7 of 15 ( Start time: 11:02:07 AM ) Total Marks: 1
Which of the following is a characteristic of a mixed economy?
Select correct option:
In mixed economy, resources are governed by both
Mixed economy utilizes the characteristics of both ma
People are free to make their decisions and governm
All of the given options are true.

Question # 8 of 15 ( Start time: 11:03:32 AM ) Total Marks: 1
Which of the following is TRUE about the production function?
Select correct option:
It relates inputs with output.
It generates a curve that is upward sloping.
It shows diminishing marginal product of an input, sin
All of the given options are true.

Question # 9 of 15 ( Start time: 11:04:25 AM ) Total Marks: 1
A monopolistically competitive firm in short run equilibrium:
Select correct option:
Will make negative profit (lose money).
Will make zero profit (break-even).
Will make positive profit.
Any of the given is possible.

Question # 10 of 15 ( Start time: 11:05:43 AM ) Total Marks: 1
Why the economy does not self correct quickly, one explanation for this is:
Select correct option:
With less consumption and more savings the interest
In the short run workers are fully employed and cann
Wages and prices are flexible
Wages and prices are sticky.

Question # 11 of 15 ( Start time: 11:07:10 AM ) Total Marks: 1
If the cost of parts of automobiles rises, then:
Select correct option:
The demand curve for automobiles shifts to the right
The demand curve for automobiles shifts to the left.
The supply curve for automobiles shifts to the right.
The supply curve for automobiles shifts to the left.

Question # 12 of 15 ( Start time: 11:08:03 AM ) Total Marks: 1
If the investment demand curve is vertical then:

Select correct option:
Both monetary and fiscal policy are ineffective.
Both monetary and fiscal policy are effective.
Monetary policy is effective but fiscal policy is ineffec
Monetary policy is ineffective but fiscal policy is effec

Question # 13 of 15 ( Start time: 11:09:23 AM ) Total Marks: 1
In economics, the “long run” is a time period in which:
Select correct option:
All inputs are variable.
All inputs are paid for.
All outputs are determined.
All loans are repaid.

Question # 14 of 15 ( Start time: 11:10:49 AM ) Total Marks: 1
The firm's demand for labor is:
Select correct option:
The marginal revenue product curve

The marginal input cost curve
The marginal cost curve
Undetermined

Question # 15 of 15 ( Start time: 11:12:17 AM ) Total Marks: 1
The more inelastic the demand, the more of the tax’s burden will fall on:
Select correct option:
Consumers.
Producers.
Government.
Middle man.

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ECO401 Online Quiz No. 3

ECO401 Online Quiz No. 3

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