Solved ECO401 Economics Final Term Paper Fall 2009

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Question No: 1 ( Marks: 1 ) - Please choose one
A good for which income and quantity demanded are inversely related is known as:

• Inferior good.
  
• Complementary good.
  
• Normal good.
  
• None of the given options.
  

Question No: 2 ( Marks: 1 ) - Please choose one
Suppose your local public golf course increases the greens fees for using the course. If
the demand for golf is relatively inelastic, you would expect:

• A decrease in total revenue received by the course.
  
• An increase in total revenue received by the course.
  
• No change in total revenue received by the course.
  
• An increase in the amount of golf played on the course.
  

Question No: 3 ( Marks: 1 ) - Please choose one
If the income elasticity of demand for boots is 0.2, a 10% increase in consumer's income
will lead to a:

• 20 percent decrease in the quantity of boots demanded.
  
• 2 percent increase in the quantity of boots demanded.
  
• 0.2 percent increase in the quantity of boots demanded.
  
• 20 percent increase in the quantity of boots demanded.
  

Question No: 4 ( 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: 5 ( Marks: 1 ) - Please choose one
An individual with a constant marginal utility of income will be:

• Risk loving.
  
• Risk neutral.
  
• Risk averse.
  
• Insufficient information for a decision.
  

Question No: 6 ( Marks: 1 ) - Please choose one
At any given point on an indifference curve, the absolute value of the slope equals:

• Unity--otherwise there would be no indifference.
  
• The marginal rate of substitution.
  
• The consumer’s marginal utility.
  
• None of the given options.
  

Question No: 7 ( Marks: 1 ) - Please choose one
If at the profit-maximizing quantity, profits are positive, then:

• Price < Average Total Cost.
  
• Price > Average Total Cost.
  
• Price < Average Variable Cost.
  
• Price = Marginal Cost.
  

Question No: 8 ( Marks: 1 ) - Please choose one
Which of the following is true in long run equilibrium for a firm in a monopolistic
competitive industry?

• The demand curve is tangent to marginal cost curve.
  
• The demand curve is tangent to average cost curve.
  
• The marginal cost curve is tangent to average cost curve.
  
• The demand curve is tangent to marginal revenue curve.
  

Question No: 9 ( Marks: 1 ) - Please choose one
If income elasticity is negative, the good is:

• Normal good.
  
• A substitute good.
  
• A complementary good.
  
• Inferior good.
  

Question No: 10 ( Marks: 1 ) - Please choose one
Welfare economics is the branch of economics which deals with:

• Positive issues.
  
• Normative issues.
  
• Micro issues.
  
• Macro issues.
  

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[viki]

Solved Paper of ECO401

[viki]

I am not responsible for any of the mistake made in the assignment solutions, MCQ's Solutions, GDB Solutions or any other solution which i provide the students of VU. I just try to help the students while giving the idea's Simply the rest of the work they have to do on there own. They must make the changes and then submit the solution


Final Term Paper of ECO401

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Thanks Viki you are doing great job. Good one keep it up.....