ECO401 Quiz

ECo401 Economic Quiz No 3

Question # 1 of 15 ( Start time: 02:25:39 AM ) Total Marks: 1 If the total product of labor per day is as shown in the chart below and the price of the product is $10/unit, how many employees will be hired if the wage rate is $99/day? Labor Total output 1 10 2 25 3 35 4 40 5 41 Select correct option: 1234

Question # 2 of 15 ( Start time: 02:26:53 AM ) Total Marks: 1 According to economy is always at full employment level. Economy would automatically find the new equilibrium in the short run. Select correct option: True False(Well this question seems to be incomplete, the question is "According to...", now according to what/who? I think this question is taken from Revised handouts, page 110, which says, "According to classicals, economy is always at full employment level. Economy would automatically find the new equilibrium in the long run; they did not talk about short run". So according to this statement, the correct answer to this question should be option # 2 "False")

Question # 3 of 15 ( Start time: 02:28:12 AM ) Total Marks: 1 In monopolist market, a new entrant firm should produce where: Select correct option: Marginal Cost <> Marginal Revenue.Marginal Cost = Marginal Revenue.Marginal Cost = Average Revenue.(I got confused after reading the statement of the question... Coz according to my knowledge if a new entrant enters a market, it no longer remains a monopoly...? Right? Can someone explain this question please...?)

Question # 4 of 15 ( Start time: 02:29:14 AM ) Total Marks: 1We know that the demand for a product is elastic if: Select correct option: When price rises, revenue rises When price rises, revenue fallsWhen price rises, quantity demanded rises When price falls, quantity demanded rises

Question # 5 of 15 ( Start time: 02:29:57 AM ) Total Marks: 1 A partial explanation for the inverse relationship between price and quantity demanded is that a: Select correct option: 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

Question # 6 of 15 ( Start time: 02:30:56 AM ) Total Marks: 1 According to the model of aggregate supply and aggregate demand, in the long run, an increase in the money supply should cause Select correct option: Prices to rise and output to rise. Prices to fall and output to remain unchanged Prices to fall and output to fall. Prices to rise and output to remain unchanged

Question # 7 of 15 ( Start time: 02:32:03 AM ) Which of the following is a flow variable? Select correct option: The value of the house in which you live The balance in your savings account Your monthly consumption of hamburgersThe number of hamburgers in your refrigerator at the beginning of the month (Option # 3 seems more appropriate "Your monthly consumption of hamburgers".)

Question # 8 of 15 ( Start time: 02:33:12 AM ) Total Marks: 1 Other things equal, expected income can be used as a direct measure of well-being: Select correct option: No matter what a person's preference to risk.If and only if individuals are not risk-loving.If and only if individuals are risk averse.If and only if individuals are risk neutral.

Question # 9 of 15 ( Start time: 02:34:23 AM ) Total Marks: 1Cartels are: Select correct option: Organizations of independent firms, producing similar products, that work together to raise prices and restrict output Organizations of interdependent firmsOligopoliesAll of the above
Cartels are organization of independent firms, producing similar products, that work together to raise prices and restrict output. For the most part, cartels are illegal in the United States. Cartels are oligopolistic firms that collude. All of the above is the correct answer

Question # 10 of 15 ( Start time: 02:35:10 AM ) Total Marks: 1 One explanation why the economy does not self correct quickly is Select correct option: With less consumption and more savings the interest rate will drop In the short run workers are fully employed and cannot produce enough to get to long run equilibrium Wages and prices are flexible Wages and prices are sticky

Question # 11 of 15 ( Start time: 02:36:19 AM ) Total Marks: 1 Which of the following events shifts the short-run aggregate supply curve to the right? Select correct option: A decrease in the money supply A drop in oil pricesAn increase in government spending on military equipment An increase in price expectations

Question # 12 of 15 ( Start time: 02:37:35 AM ) Total Marks: 1In pure capitalism, freedom of enterprise means that: Select correct option:Businesses are free to produce products that consumers wantConsumers are free to buy goods and services that they wantResources are distributed freely to businesses that want themGovernment is free to direct the actions of businesses(I selected option # 3, and it seems to be correct, Read page # 1 here: http://facstaff.gpc.edu/~poyofo/OldChap ... apter4.pdf)

Question # 13 of 15 ( Start time: 02:38:48 AM ) Total Marks: 1The AD Curve is downward sloping because of all of the following reasons except that: Select correct option: The Fed raises real interest rates as inflation increasesThe Fed raises nominal interest rates as inflation risesThe Fed intentionally tries to reduce the level of aggregate demand when inflation rises. The Fed intentionally tries to increase the level of output as unemployment increases

Question # 14 of 15 ( Start time: 02:40:03 AM ) Total Marks: 1 If there is a price ceiling, there will be: Select correct option: ShortagesSurpluses EquilibriumNone of the given options.

Question # 15 of 15 ( Start time: 02:40:42 AM ) Total Marks: 1 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: SupplyDemandQuantity suppliedQuantity demanded