ECO401 Economics Current Solved Quiz 3 26 July 2010

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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.
  

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 Scedule.
  
• Demand Scedule.
  
• Quantity supplied Scedule.
  
• Quantity demanded Scedule.
  

Suppose we find that the cross-price elasticity of demand for two products is a negative
number. We know that:
Select correct option:

• The two goods are normal goods.
  
• The two goods are inferior goods.
  
• The two goods are substitutes.
  
• The two goods are complements.
  

If diminishing marginal utility holds and a person consumes less of a good, then all else
being equal:
Select correct option:

• The price of the good will rise.
  
• Marginal utility will rise.
  
• Expenditure on the good will increase.
  
• Marginal utility will decline.
  

AD curve slopes upward for both Keynes and classical
Select correct option:

• True
  
• False
  

The cross elasticity of demand of complements goods is:
Select correct option:

• Less than 0.
  
• Equal to 0.
  
• Greater than 0.
  
• Between 0 and 1.
  

Our economy is characterized by:
Select correct option:

• Unlimited wants and needs.
  
• Unlimited material resources.
  
• No energy resources.
  
• Abundant productive labor.
  

A Natural Monopoly is most likely to exist when:
Select correct option:

• There are large barriers to entry.
  
• There are long term patents.
  
• There are large economies of scale.
  
• There is government regulation of the industry.
  

The trend of unemployment over the last forty years is:
Select correct option:

• A decrease in unemployment.
  
• It has remained largely unchanged.
  
• An increase in unemployment.
  
• It is too difficult to tell so don't bother.
  

Which one of the following is most likely to lead to an increase in aggregate demand? An
increase in:
Select correct option:

• Government tax revenues
  
• Household savings
  
• Business capital investment
  
• Demand for imports
  

A nation's production possibilities curve is "bowed out" from the origin because:
Select correct option:

• Resources are not perfectly shiftable between productions of the two goods.
  
• Capital goods and consumer goods utilize the same production technology.
  
• Resources are scarce relative to human wants.
  
• Opportunity costs are decreasing.
  

Which of the following markets is most likely to be oligopolistic?
Select correct option:

• The market for corn.
  
• The market for aluminum.
  
• The market for colas.
  
• The market for ground coffees.
  

Which best expresses the law of demand?
Select correct option:

• A higher price reduces demand.
  
• A lower price reduces demand.
  
• A higher price reduces quantity demanded.
  
• A lower price shifts the demand curve to the right.