Economics - Concepts Builder

Economics focuses on the behaviour and interactions of economic agents and how economies work. Microeconomics is a field which analyzes what’s viewed as basic elements in the economy, including individual agents and markets, their interactions, and the outcomes of interactions. Individual agents may include, for example, households, firms, buyers, and sellers. Macroeconomics analyzes the economy as a system where production, consumption, saving, and investment interact, and factors affecting it: employment of the resources of labour, capital, and land, currency inflation, economic growth, and public policies that have impact on these elements

Eco401 latest Quiz 3

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Created on August 04, 2022 By

Tayyaba Bibi

Eco401 latest Quiz 3

Eco401 latest Quiz 3 Dated-08-22

1 / 12

Aslam decides to stay at home and study for his exam rather than going out with his friends to a movie. His dilemma is an example of:

Opportunity cost.

Allocative efficiency.

Marginal analysis.

The economic perspective.

2 / 12

In which case, total expenditure in an economy is not equal to total income?

If inventory investment is negative.

If net exports are not zero.

If total saving is larger than total investment.

None of the given options--they are always equal.

3 / 12

Right after the Christmas holidays and during those three weeks before class begins in

January.

There is nothing wrong with the structure of this sentence.

. Fragment: put a comma after January and finish the sentence.

Run-on: put a comma after holidays.

4 / 12

Pakistan will win the World Cup.

Optimistic

sentimental

humorous

sympathetic

5 / 12

According to classical economists, the:

Aggregate demand curve is downward sloping and the aggregate supply curve is vertical Aggregate demand curve is downward sloping and the aggregate supply curve is upward sloping

Aggregate demand curve is vertical and the aggregate supply curve is upward sloping

Aggregate demand curve is downward sloping and the aggregate supply curve is upward sloping

Aggregate demand curve is downward sloping and the aggregate supply curve is vertical

6 / 12

An important difference between the approaches of the classical and Keynesian economists use to achieve a macroeconomic equilibrium is that:

Keynesian economists actively promote the use of fiscal policy; the classical economists do not

classical economists believe that fiscal policy is an effective tool for achieving economic stability; Keynesians do not

classical economists believe that monetary policy will certainly affect the level of output; Keynesians believe that money growth affects only prices

Keynesian economists actively promote the use of monetary policy to improve aggregate economic performance; classical economists do not

7 / 12

The gold standard was an example of what kind of exchange-rate system?

A freely floating exchange rate.

A managed floating exchange rate.

A non-convertible exchange rate.

A fixed exchange rate.

8 / 12

Keynes advocated demand-side policies to lift the economy out of that equilibrium towards full employment.

False

True

9 / 12

Which of the following is the Fisher Equation of Exchange?

MY=VP.

MV=PQ.

VT=PM.

MT=PV.

10 / 12

According to Classical models, the level of employment is determined primarily by:

Government spending.

Government taxation

Prices and wages.

The level of aggregate demand for goods and services.

11 / 12

Unemployment benefits may increase the unemployment rate because unemployment benefits:

Enable people to quit searching for work.

Reduce the benefits of additional job searching.

Encourage people to quit their jobs.

Reduce the cost of job search.

12 / 12

If injections are less than withdrawals at the full-employment level of income then there arises:

An inflationary gap.

Hyperinflation.

Hysteresis.

A deflationary gap.

Your score is

The average score is 32%

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ECO403 Midterm Quiz

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Created on July 01, 2022 By

Tayyaba Bibi

ECO403 Midterm Quiz

ECO403 Midterm Quiz 01-07_22

1 / 12

The difference between exports and imports in determining the GDP is known as the:

Net income.

Net imports.

Import tariffs.

Net exports

2 / 12

An increase in investment is most likely to be caused by:

An increase in withdrawals.

A decrease in the marginal propensity to consume.

Lower national income.

Lower interest rates.

3 / 12

Which of the following is true about M1?

It includes travelers' checks.

It includes the most liquid forms of money.

It is the narrowest definition of the money supply

All of the given options are true.

4 / 12

Which of the following expenditures are counted as part of government consumption and investment?

Social Security benefits

Expenditures by state and local governments

Interest payments on the government debt

Transfer payments

5 / 12

In the Solow growth model, persistent increases in standards of living are due to which of the following?

A high rate of population growth, which leads to a larger labor force.

A high saving rate, which leads to sustained high rates of growth.

Technological progress, which leads to sustained growth in output per worker.

All of the given options

6 / 12

If a change in the price of one good has no effect on the quantity demanded of another good, then both goods are ________.

Independent

inferior

Substitute of each other

Complement of each other

7 / 12

All the points on the indifference curve give equal level of

Marginal utility

Demand

Supply

Utility

8 / 12

Total utility increases at a decreasing rate is shown by negative slope of ________ curve.

Marginal utility

Total utility

Supply

Demand

9 / 12

In product market:

Firms supply products which households demand.

Households demand inputs that firms supply.

Households supply resources which firms demand.

Households supply goods and services which business demand.

10 / 12

The Golden Rule level of capital accumulation k*gold denotes the steady state with the heighest:

Growth rate of output per worker.

Growth rate of consumption per worker.

Level of output per worker.

Level of consumption per worker.

11 / 12

An increase in investment is most likely to be caused by:

Lower interest rates.

Lower national income.

A decrease in the marginal propensity to consume.

12 / 12

The Slow residual measures:

The dynamic efficiency of an economy.

The share of net product that constitutes real capital income.

The part of the growth of output not attributable to the growth of inputs.

The average growth rate of productive inputs less an adjustment for technological progress.

Your score is

The average score is 17%

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ECO402 Midterm Quiz

Let's Start!

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Created on July 01, 2022 By

Tayyaba Bibi

ECO402 Midterm Quiz

ECO402 Midterm Quiz 1-07-22

1 / 12

Total utility increases at a decreasing rate is shown by negative slope of ________ curve.

Marginal utility

Total utility

Supply

Demand

2 / 12

All the points on the indifference curve give equal level of

Marginal utility

Demand

Supply

Utility

3 / 12

If a change in the price of one good has no effect on the quantity demanded of another good, then both goods are ________.

Independent

inferior

Substitute of each other

Complement of each other

4 / 12

Which of the following is NOT true about indifference curve?

Indifference curves can not interact each other.

Indifference curves always are concave to origin.

Indifference curves always are convex to origin.

5 / 12

The additional satisfaction a consumer gains from consuming one more unit of a good is called as:

Consumer satisfaction.

Marginal utility.

Average utility.

Total utility.

6 / 12

Which of the following is correct mathematical formula of marginal cost?

∆TC/∆Q

∆TC−∆Q

∆TC+∆Q

∆TC/∆Q

7 / 12

If a change in the price of one good has no effect on the quantity demanded of another good, then both goods are ________.

Independent

inferior

Substitute of each other

Complement of each other

8 / 12

Which of the following is correct?

Price elasticity of demand = Change in price / Change in Demand

Price elasticity of demand = Percentage change in price / Percentage change in Demand

Price elasticity of supply = Percentage change in Quantity demanded / Percentage change in Price

Price elasticity of demand = Percentage change in Quantity demanded / Percentage change in Price

9 / 12

Cross-price elasticity of demand for the substitute goods will always be:

Positive

Negative

Infinity

Zero

10 / 12

Which of the following inputs is(are) variable in the long run?

Capital and equipment

Plant size

Labor

All of the given

11 / 12

Coffee and tea are considered as substitutes if price of coffee increases then it will shift

Demand curve for tea towards right

Demand curve for coffee towards right

Supply curve for tea towards left

Demand curve for tea towards left

12 / 12

When the two goods are perfect substitutess to each other then the marginal rate of substitution for them will be:Zero

Positive

Negative

Zero

Constant

Your score is

The average score is 14%

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ECO401 Midterm Quiz

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ECO 402 Quiz 1

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Created on June 13, 2022 By

Tayyaba Bibi

ECO 402 Quiz1

ECO 402 Quiz1 Dated 13-06-22

1 / 11

If an economy is operating at a point inside the production possibilities curve,

the curve will begin to shift outward.

the curve will begin to shift inward.

its resources are being wasted.

This is a trick question because an economy cannot produce at a point inside the curve.

2 / 11

Which of the following sayings best reflects the concept of

opportunity cost?

"There's no business like show business."

"Time is money."

"I have a baker's dozen."

"You can't teach an old dog new tricks."

3 / 11

Adam Smith believed that if people were free to pursue their own interests, then

greed and cheating would prevail in the market.

less would be produced than if altruism were our guiding principle.

they would generally be encouraged to produce goods and services that others valued highly (relative to their costs).

the public interest would be best served, but the interests of employers would be hurt

4 / 11

Which one of the following is a positive economic statement?

The sales tax on food should be repealed.

Taxes should be raised to halt inflation.

Social conscience demands that we increase the minimum wage.

An increase in the price of butter causes consumers to buy less butter.

5 / 11

What do economists mean when they state that a good is scarce?

It is impossible to expand the availability of the good.

People will want to buy more of the good regardless of price.

There is a shortage or insufficient supply of the good at the existing price.

The amount of the good that people would like to have exceeds the supply that is freely available from nature.

6 / 11

Economic choice and competitive behavior are the result of

scarcity

private ownership of resources.

poverty

basic human greed.

7 / 11

Rationing is

the allocation of a limited supply of a good or resource among users who would like to have more of it.

essential only when the price of a product is set above market equilibrium.

a function that is unnecessary except in cases where markets are used to allocate goods and resources.

essential only when the price of a product is set above market equilibrium.

8 / 11

The expression, "There's no such thing as a free lunch" implies that

no one has time for a good lunch anymore.

costs are incurred when resources are used to produce goods and services.

the person consuming a good must always pay for it.

everyone has to pay for his own lunch.

9 / 11

Which of the following is most clearly consistent with the basic postulate of

economics with regard to human decision making?

People will never choose work over leisure.

People will buy less gas if the gasoline tax decreases 20 cents per gallon.

People will buy more orange juice at $2 per gallon than at $1 per gallon.

People will consume less beef if the price increases from $1 to $2 per pound.

10 / 11

The basic difference between macroeconomics and microeconomics is that

macroeconomics looks at the forest (aggregate markets), while microeconomics is concerned with the individual trees (subcomponents).

macroeconomics is concerned with policy decisions, while microeconomics applies only to theory.

microeconomics is concerned with the forest (aggregate markets), while macroeconomics is concerned with the trees (components).

opportunity cost is applicable to macroeconomics, and the fallacy of composition relates to microeconomics.

11 / 11

Economic analysis assumes that

changes in the personal benefits and costs associated with an activity will exert a predictable influence on human behavior.

people are basically humanitarian and their actions are therefore difficult to predict.

although individuals are at times selfish and at times altruistic, only their selfish actions may be predicted.

for the most part, individuals act out of selfish motives, and it is realistic to assume this is always true.

Your score is

The average score is 32%

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Introduction to Economics ECO401

(Lets' Start You Quiz)

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Created on May 29, 2022 By

Usman Ali

Introduction to Economics ECO401

ECO401 Quiz 1

1 / 10

1) The services of land and capital are exchanged through:

a) Good markets.

b) Factor markets.

c) Product markets.

d) Commodity markets.

2 / 10

2) If the demand for a good or service is inelastic then increase in its price:

a) Increases quantity demanded of a good.

b) Decreases quantity supplied of a good.

c) Increases total revenue.

d) Decreases total revenue.

3 / 10

3) If price elasticity of supply is zero, then the supply curve will be:

a) Upward sloping

b) Downward sloping

c) Vertical

d) Rectangular hyperbola

4 / 10

4) Suppose a good is having elastic demand. If price of a good increases:

a) Quantity demanded of will increase.

b) Quantity supplied of good will decrease.

c) Total revenue will increase.

d) Total revenue will decrease.

5 / 10

5) Which policy moves the economy from equilibrium to a state of surplus?

a) Price ceiling

b) Price floor

c) Per unit tax imposed by the government

d) Subsidy given by the government

6 / 10

6) Demand tends to be more elastic in the

a) Short run time period

b) Immediate time period

c) Long run time period

d) All of the given options

7 / 10

7) When the price of wheat rises by 10% the quantity of wheat purchased
falls by 4%. This shows that the demand for wheat is:

a) Perfectly price elastic

b) Unit price elastic

c) Price elastic

d) Price inelastic

8 / 10

8) The services of land and capital are exchanged through.

a) Good markets.

b) Factor markets.

c) Product markets.

d) Commodity markets.

9 / 10

9) Which of the following is a determinant of quantity supplied?

a) Prices of substitute goods.

b) Tastes.

c) Prices of complimentary goods.

d) Aims of producers.

10 / 10

10) The minimum wage set by the government is an example of:

a) Free market equilibrium

b) Price celling

c) Price floor

d) Shortages

Your score is

The average score is 37%

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