Eco401-Quizes

V. Important
Please Solve it (With Reference)before the exams start

Quiz Start Time: 07:21 AM

Time Left 89
sec(s)
Question # 1 of 10 ( Start time: 07:21:10 AM ) Total Marks: 1
A Demand Curve is price inelastic when changes in demand are:
Select correct option:
Greater than zero.
Equal than those in price.
Proportionately smaller than those in price.
Proportionately greater than those in price.

Quiz Start Time: 07:21 AM

Time Left 89
sec(s)
Question # 2 of 10 ( Start time: 07:21:48 AM ) Total Marks: 1
Engel curve shows the positive relationship between quantity demanded of normal
good and:
Select correct option:
Price.
Supply.
Income.
Money supply.

Quiz Start Time: 07:21 AM

Time Left 89
sec(s)
Question # 3 of 10 ( Start time: 07:23:05 AM ) Total Marks: 1
If the cross price elasticity of demand between two products is -3.5, then:
Select correct option:
One of the products is expensive and one is relatively inexpensive.
One product is a normal good and the other is an inferior good.
The two products are complements.
The two products are substitutes.

Quiz Start Time: 07:21 AM

Time Left 89
sec(s)
Question # 4 of 10 ( Start time: 07:24:34 AM ) Total Marks: 1
Suppose AKJ Company is manufacturing leather goods and has inelastic demand for
leather products. In this situation, more of the tax burden would fall on:
Select correct option:
Producers.
Consumers.
Government.
 Both producers and consumers.

Quiz Start Time: 07:21 AM

Time Left 89
sec(s)
Question # 5 of 10 ( Start time: 07:25:02 AM ) Total Marks: 1
Atif Khan, Young minister for agriculture, has updated in a talk show that rise in food
prices is due to the rising oil prices. Which category his statement falls in?
Select correct option:
Normative
Positive
Negative
None of the given options

Quiz Start Time: 07:21 AM

Time Left 89
sec(s)
Question # 6 of 10 ( Start time: 07:25:23 AM ) Total Marks: 1
The demand for apples is expressed as: Qd = 80 - P The supply of apples is expressed
as: Qs = 3P Refer to the above scenario, if the equilibrium price of apples is Rs. 20,
the equilibrium quantity of apples is:
Select correct option:
55
60
80
100

Quiz Start Time: 07:21 AM

Time Left 89
sec(s)
Question # 7 of 10 ( Start time: 07:26:46 AM ) Total Marks: 1
Microeconomics is the branch of economics that deals with which of the following?
Select correct option:
Individual consumers
Individual firms and investors
Unemployment and interest rates
Individual consumers and individual firms and investors

Quiz Start Time: 07:21 AM

Time Left 89
sec(s)
Question # 8 of 10 ( Start time: 07:28:06 AM ) Total Marks: 1
At the equilibrium price, there will be:
Select correct option:
A shortage.
A surplus.
Neither a shortage nor a surplus.
Forces that cause the price to change.
Quiz Start Time: 07:21 AM
Time Left 89
sec(s)
Question # 9 of 10 ( Start time: 07:29:06 AM ) Total Marks: 1
When the price for entry tickets for parks decrease, families tend to spend more time
at parks instead at home. This best reflects:
Select correct option:
Diminishing marginal utility.
The income effect.
The rationing function of markets.
The substitution effect.

Quiz Start Time: 07:21 AM

Time Left 89
sec(s)
Question # 10 of 10 ( Start time: 07:30:26 AM ) Total Marks: 1
If quantity demanded of videocassette players decreases by 15% as a result of 10%
increase in its price, then one can conclude that demand for videocassette players is:
Select correct option:
Elastic.
Inelastic.
Perfectly elastic.
Perfectly inelastic.

Quiz Start Time: 01:00 PM

Time Left 90
sec(s)
Question # 1 of 10 ( Start time: 01:00:26 PM ) Total Marks: 1
If the income elasticity of demand for bread is 0.4, a 10% increase in consumer
income will lead to a _____________ in the quantity of bread demanded.
Select correct option:
40% increase
40% decrease
4% increase
0.4% increase

Quiz Start Time: 01:00 PM

Time Left 89
sec(s)
Question # 2 of 10 ( Start time: 01:01:49 PM ) Total Marks: 1
If more substitutes available in the market, the __________ demand will be in
response to a change in price.
Select correct option:
More elastic
Less elastic
Unit elastic
Infinite elastic

Quiz Start Time: 01:00 PM

Time Left 89
sec(s)
Question # 3 of 10 ( Start time: 01:03:19 PM ) Total Marks: 1
Suppose Ali is consuming 20 units of Apples and 10 units of bananas with his given
income. Suddenly his level of income increases and he starts consuming more of both
goods. For Ali, both goods are:
Select correct option:
Normal Goods.
Substitutes.
Complements.
Giffen Goods.

Quiz Start Time: 01:00 PM

Time Left 89
sec(s)
Question # 4 of 10 ( Start time: 01:04:30 PM ) Total Marks: 1
Suppose AKJ Company is manufacturing leather goods and has inelastic demand for
leather products. In this situation, more of the tax burden would fall on:
Select correct option:
Producers.
Consumers.
Government.
Both producers and consumers.

Quiz Start Time: 01:00 PM

Time Left 89
sec(s)
Question # 5 of 10 ( Start time: 01:05:56 PM ) Total Marks: 1
Suppose we find that the cross-price elasticity of demand for two products is a
negative number. We know that the two goods are:
Select correct option:
Normal goods.
Inferior goods.
Substitutes.
Complements.

Quiz Start Time: 01:00 PM

Time Left 89
sec(s)
Question # 6 of 10 ( Start time: 01:06:49 PM ) Total Marks: 1
Demand is elastic when the elasticity of demand is:
Select correct option:
Greater than 0.
Greater than 1.
Less than 1.
Less than 0.

Quiz Start Time: 01:00 PM

Time Left 89
sec(s)
Question # 7 of 10 ( Start time: 01:07:34 PM ) Total Marks: 1
The marginal utility function of TU = 60Q – 4Q2 will be:
Select correct option:
 60-8Q.
60-16Q.
60-4Q.
60Q2 -4Q.

Quiz Start Time: 01:00 PM

Time Left 89
sec(s)
Question # 8 of 10 ( Start time: 01:08:45 PM ) 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.

Quiz Start Time: 01:00 PM

Time Left 89
sec(s)
Question # 9 of 10 ( Start time: 01:10:12 PM ) Total Marks: 1
At the equilibrium price, there will be:
Select correct option:
A shortage.
A surplus.
Neither a shortage nor a surplus.
Forces that cause the price to change.

Quiz Start Time: 01:00 PM

Time Left 89
sec(s)
Question # 10 of 10 ( Start time: 01:10:47 PM ) Total Marks: 1
The study of economics basically focuses on:
Select correct option:
For whom resources are allocated to increase efficiency.
How society spends the income of individuals.
How scarce resources are allocated to fulfill society's goals.
What scarce resources are used to produce goods and services.

Quiz Start Time: 02:14 PM

Time Left 89
sec(s)
Question # 1 of 20 ( Start time: 02:14:17 PM ) Total Marks: 1
The point at which AC intersects MC is where:
Select correct option:
AC is decreasing.
MC is at its minimum.
AC is at its minimum.
AC is at its maximum.

Quiz Start Time: 02:14 PM

Time Left 89
sec(s)
Question # 2 of 20 ( Start time: 02:15:37 PM ) Total Marks: 1
The marginal utility function of TU = 60Q – 4Q2 will be:
Select correct option:
60-8Q.
60-16Q.
60-4Q.
60Q2 -4Q.

Quiz Start Time: 02:14 PM

Time Left 89
sec(s)
Question # 3 of 20 ( Start time: 02:16:59 PM ) Total Marks: 1
Demand is said to be ---------------- when the elasticity of demand is less than 1.
Select correct option:
Increasing
Decreasing
Elastic
Inelastic

Quiz Start Time: 02:14 PM

Time Left 89
sec(s)
Question # 4 of 20 ( Start time: 02:18:14 PM ) Total Marks: 1
If a 2% rise in consumer’s incomes causes a 4% rise in product’s demand, the income
elasticity of demand for the product will be:
Select correct option:
0.5.
1.5.
2.
2.5.

Quiz Start Time: 02:14 PM

Time Left 89
sec(s)
Question # 5 of 20 ( Start time: 02:19:41 PM ) Total Marks: 1
If there are 30 percent chances that machine will work well and 70 chances that it will
not function well, then the odd ratio will be:
Select correct option:
2.333.
0.428.
0.40.
0.721.

Quiz Start Time: 02:14 PM

Time Left 89
sec(s)
Question # 6 of 20 ( Start time: 02:21:02 PM ) Total Marks: 1
Which of the following is TRUE for an entrepreneur?
Select correct option:
An innovator.
A risk taker.
Someone who brings resources together and produces a product.
All of the given options are correct.

Quiz Start Time: 02:14 PM

Time Left 89
sec(s)
Question # 7 of 20 ( Start time: 02:22:18 PM ) Total Marks: 1
If two goods were perfect substitute, their indifference curves would be:
Select correct option:
Straight lines.
L-shaped.
Rectangular hyperbolas.
Parabolic.

Quiz Start Time: 02:14 PM

Time Left 89
sec(s)
Question # 8 of 20 ( Start time: 02:23:45 PM ) Total Marks: 1
If inputs used in the production of wheat are increased by 30 percent and wheat
production increases by 20 percent, then there must be:
Select correct option:
Increasing returns to factor.
Constant returns to scale.
Increasing returns to scale.
Decreasing returns to scale.

Quiz Start Time: 02:14 PM

Time Left 89
sec(s)
Question # 9 of 20 ( Start time: 02:25:06 PM ) Total Marks: 1
Calculating elasticity at a certain point involves:
Select correct option:
Point elasticity of demand.
Cross price elasticity of demand.
Income elasticity of demand.
Arc elasticity of demand.

Quiz Start Time: 02:14 PM

Time Left 89
sec(s)
Question # 10 of 20 ( Start time: 02:26:16 PM ) Total Marks: 1
Suppose Fauji Fertilizer Company Limited produces 5000 bags of Sona Urea and sells
each bag at a price of Rs. 350. What is the average revenue this firm gets by selling all
units?
Select correct option:
350
1750
 1425
1800

Quiz Start Time: 02:14 PM

Time Left 89
sec(s)
Question # 11 of 20 ( Start time: 02:27:43 PM ) Total Marks: 1
Atif Khan, Young minister for agriculture, has updated in a talk show that rise in food
prices is due to the rising oil prices. Which category his statement falls in?
Select correct option:
Normative
Positive
Negative
None of the given options

Quiz Start Time: 02:14 PM

Time Left 89
sec(s)
Question # 12 of 20 ( Start time: 02:28:42 PM ) Total Marks: 1
Sugar can be produced from sugar beets. If the price of sugar beets falls, then:
Select correct option:
The demand curve for sugar would shift right.
The demand curve for sugar would shift left.
The supply curve for sugar would shift right.
The supply curve for sugar would shift left.
uiz Start Time: 02:14 PM
Time Left 89
sec(s)
Question # 13 of 20 ( Start time: 02:30:03 PM ) Total Marks: 1
Ehsan Chappal Store (ECS) is a leading shoes manufacturing company. If quantity
supplied of ECS shoes increases more than the increase in price, then one can
conclude that the supply curve for shoes is:
Select correct option:
Elastic.
Inelastic.
Perfectly elastic.
Perfectly inelastic.

Quiz Start Time: 02:14 PM

Time Left 89
sec(s)
Question # 14 of 20 ( Start time: 02:31:20 PM ) Total Marks: 1
If a firm operates in a perfectly competitive market, then it will most likely:
Select correct option:
Advertise its product on television.
Have difficult time obtaining information about the market price.
Settle for whatever price is offered.
Have an easy time keeping other firms out of the market.

Quiz Start Time: 02:14 PM

Time Left 89
sec(s)
Question # 15 of 20 ( Start time: 02:32:12 PM ) Total Marks: 1
The percentage change in quantity demanded given a percentage change in
consumer's income is known as:
Select correct option:
Price elasticity of demand.
Income elasticity of demand.
Supply price elasticity.
Cross price elasticity.

Quiz Start Time: 02:14 PM

Time Left 89
sec(s)
Question # 16 of 20 ( Start time: 02:33:15 PM ) Total Marks: 1
Goods A and B are complements while goods A and C are substitutes. If the supply of
good A decreases then demand for:
Select correct option:
Both B and C will increase.
For both B and C will decrease.
B will increase while demand for C will decrease.
B will decrease while demand for C will increase.

Quiz Start Time: 02:14 PM

Time Left 89
sec(s)
Question # 17 of 20 ( Start time: 02:34:33 PM ) Total Marks: 1
If sugar and tea are considered to be perfect complements, than a decrease in price of
sugar will lead to:
Select correct option:
Decrease in quantity demanded of sugar.
Decrease in quantity demanded of tea.
Increase in quantity demanded of tea.
Increase in quantity supplied of tea.

Quiz Start Time: 02:14 PM

Time Left 89
sec(s)
Question # 18 of 20 ( Start time: 02:36:02 PM ) Total Marks: 1
Suppose a firm operating in perfect competition produces 450 units of output. If this
firm gets total revenue equals Rs. 54000 by selling all units of output, then per unit
price is:
Select correct option:
130.
115.
125.
120.

Quiz Start Time: 02:14 PM

Time Left 88
sec(s)
Question # 19 of 20 ( Start time: 02:37:26 PM ) Total Marks: 1
If desk lamps and bulbs are complementary goods, a fall in price of desk lamps will
shift the demand curve for:
Select correct option:
Bulbs to the right.
Bulbs to the left.
Desk lamps to the right.
Desk lamps to the left.

Quiz Start Time: 02:14 PM

Time Left 88
sec(s)
Question # 20 of 20 ( Start time: 02:38:50 PM ) Total Marks: 1
Suppose a firm uses two factors, labor and capital, the optimum combination of
factors can be obtained at the point where:
Select correct option:
PL/MPL > PK/MPK
PL/MPL < PK/MPK
MPL/PL = MPK/PK
MPL/PL < MPK/PK

Quiz Start Time: 10:37 AM

Time Left 88
sec(s)
Question # 7 of 10 ( Start time: 10:55:06 AM ) Total Marks: 1
The total cost (TC) function is given as TC = 200 + 8Q. What will be the average total
cost if 2 units of commodity are produced?
Select correct option:
20
55
108
216

Quiz Start Time: 10:37 AM

Time Left 89
sec(s)
Question # 1 of 10 ( Start time: 10:37:27 AM ) Total Marks: 1
When government sets the price of a good and that price is above the equilibrium
price, the result will be:
Select correct option:
A surplus of the good.
A shortage of the good.
An increase in the demand for the good.
A decrease in the supply of the good.

Quiz Start Time: 10:37 AM

Time Left 88
sec(s)
Question # 2 of 10 ( Start time: 10:38:48 AM ) Total Marks: 1
If the smaller proportion of income is spent on purchasing of good or service then
demand will be:
Select correct option:
More elastic.
Unit elastic.
More inelastic.
Infinite elastic.

Quiz Start Time: 10:37 AM

Time Left 88
sec(s)
Question # 3 of 10 ( Start time: 10:40:15 AM ) Total Marks: 1
Oligopoly differs from monopolistic competition in that an oligopoly includes:
Select correct option:
Product differentiation.
No barriers to entry.
Barriers to entry.
Downward sloping demand curves facing the firm.

Quiz Start Time: 10:37 AM

Time Left 89
sec(s)
Question # 4 of 10 ( Start time: 10:41:35 AM ) Total Marks: 1
If a firm’s long-run average cost of production decreases as a result of increase in
production, then the firm is experiencing:
Select correct option:
Economies of scale.
Diseconomies of scale.
Diminishing returns to scale.
Diminishing returns to factors.

Quiz Start Time: 10:37 AM

Time Left 89
sec(s)
Question # 5 of 10 ( Start time: 10:42:57 AM ) Total Marks: 1
If firms in a competitive industry are experiencing losses in the short run, then:
Select correct option:
The firms will try to raise prices.
Some firms will choose to shut down.
The industry will cease to exist.
New firms will enter the industry.

Quiz Start Time: 10:37 AM

Time Left 88
sec(s)
Question # 6 of 10 ( Start time: 10:44:20 AM ) Total Marks: 1
Suppose the total utility derived from first four units of a good consumed are 12, 22,
32, and 42 respectively. What is the marginal utility of the third unit?
Select correct option:
10.
 13.
20.
33.

Quiz Start Time: 10:37 AM

Time Left 88
sec(s)
Question # 7 of 10 ( Start time: 10:55:06 AM ) Total Marks: 1
The total cost (TC) function is given as TC = 200 + 8Q. What will be the average total
cost if 2 units of commodity are produced?
Select correct option:
20
55
108
216

Quiz Start Time: 10:37 AM

Time Left 88
sec(s)
Question # 8 of 10 ( Start time: 10:56:33 AM ) Total Marks: 1
The price elasticity of supply shows:
Select correct option:
How steep the supply curve is.
How fast supply responds to price.
How much supply shifts when income changes.
How much quantity supplied responds to price changes.

Quiz Start Time: 10:37 AM

Time Left 88
sec(s)
Question # 9 of 10 ( Start time: 10:57:40 AM ) Total Marks: 1
If the cross price elasticity of demand between two products is -3.5, then:
Select correct option:
One of the products is expensive and one is relatively inexpensive.
One product is a normal good and the other is an inferior good.
The two products are complements.
The two products are substitutes.

Quiz Start Time: 10:37 AM

Time Left 89
sec(s)
Question # 10 of 10 ( Start time: 10:58:58 AM ) Total Marks: 1
The resulting measure is unit free for price elasticity of demand, so we always
measure it in:
Select correct option:
Percentage terms.
Absolute terms.
Inelastic terms.
Elastic terms.
Quiz Start Time: 10:37 AM
Time Left 88
sec(s)
Question # 7 of 10 ( Start time: 10:55:06 AM ) Total Marks: 1
The total cost (TC) function is given as TC = 200 + 8Q. What will be the average total
cost if 2 units of commodity are produced?
Select correct option:
20
55
108
216

Quiz Start Time: 10:37 AM

Time Left 89
sec(s)
Question # 1 of 10 ( Start time: 10:37:27 AM ) Total Marks: 1
When government sets the price of a good and that price is above the equilibrium
price, the result will be:
Select correct option:
A surplus of the good.
A shortage of the good.
An increase in the demand for the good.
A decrease in the supply of the good.

Quiz Start Time: 10:37 AM

Time Left 88
sec(s)
Question # 2 of 10 ( Start time: 10:38:48 AM ) Total Marks: 1
If the smaller proportion of income is spent on purchasing of good or service then
demand will be:
Select correct option:
More elastic.
Unit elastic.
More inelastic.
Infinite elastic.

Quiz Start Time: 10:37 AM

Time Left 88
sec(s)
Question # 3 of 10 ( Start time: 10:40:15 AM ) Total Marks: 1
Oligopoly differs from monopolistic competition in that an oligopoly includes:
Select correct option:
Product differentiation.
No barriers to entry.
Barriers to entry.
Downward sloping demand curves facing the firm.

Quiz Start Time: 10:37 AM

Time Left 89
sec(s)
Question # 4 of 10 ( Start time: 10:41:35 AM ) Total Marks: 1
If a firm’s long-run average cost of production decreases as a result of increase in
production, then the firm is experiencing:
Select correct option:
Economies of scale.
Diseconomies of scale.
Diminishing returns to scale.
Diminishing returns to factors.

Quiz Start Time: 10:37 AM

Time Left 89
sec(s)
Question # 5 of 10 ( Start time: 10:42:57 AM ) Total Marks: 1
If firms in a competitive industry are experiencing losses in the short run, then:
Select correct option:
The firms will try to raise prices.
Some firms will choose to shut down.
The industry will cease to exist.
New firms will enter the industry.

Quiz Start Time: 10:37 AM

Time Left 88
sec(s)
Question # 6 of 10 ( Start time: 10:44:20 AM ) Total Marks: 1
Suppose the total utility derived from first four units of a good consumed are 12, 22,
32, and 42 respectively. What is the marginal utility of the third unit?
Select correct option:
10.
13.
20.
33.

Quiz Start Time: 10:37 AM

Time Left 88
sec(s)
Question # 7 of 10 ( Start time: 10:55:06 AM ) Total Marks: 1
The total cost (TC) function is given as TC = 200 + 8Q. What will be the average total
cost if 2 units of commodity are produced?
Select correct option:
20
55
108
216

Quiz Start Time: 10:37 AM

Time Left 88
sec(s)
Question # 8 of 10 ( Start time: 10:56:33 AM ) Total Marks: 1
The price elasticity of supply shows:
Select correct option:
 How steep the supply curve is.
How fast supply responds to price.
How much supply shifts when income changes.
How much quantity supplied responds to price changes.

Quiz Start Time: 10:37 AM

Time Left 88
sec(s)
Question # 9 of 10 ( Start time: 10:57:40 AM ) Total Marks: 1
If the cross price elasticity of demand between two products is -3.5, then:
Select correct option:
One of the products is expensive and one is relatively inexpensive.
One product is a normal good and the other is an inferior good.
The two products are complements.
The two products are substitutes.

Quiz Start Time: 10:37 AM

Time Left 89
sec(s)
Question # 10 of 10 ( Start time: 10:58:58 AM ) Total Marks: 1
The resulting measure is unit free for price elasticity of demand, so we always
measure it in:
Select correct option:
Percentage terms.
Absolute terms.
Inelastic terms.
Elastic terms.

Quiz Start Time: 08:25 AM

Time Left 89
sec(s)
Question # 1 of 20 ( Start time: 08:25:07 AM ) Total Marks: 1
The law of diminishing returns states that as more units of a variable factor are added
to a fixed factor:
Select correct option:
Marginal utility falls.
The total product falls.
The marginal product falls.
The marginal product increases.

Quiz Start Time: 08:25 AM

Time Left 89
sec(s)
Question # 2 of 20 ( Start time: 08:26:36 AM ) Total Marks: 1
A negatively sloped isoquant implies:
Select correct option:
Products with negative marginal utilities.
Products with positive marginal utilities.
Inputs with negative marginal products.
Inputs with positive marginal products.
Quiz Start Time: 08:25 AM
Time Left 83
sec(s)
Question # 3 of 20 ( Start time: 08:28:07 AM ) Total Marks: 1
According to Classical economists, which of the following factors would increase the
level of output in the economy?
Select correct option:
Increase in consumption
Increase in investment
Decrease in tax rate
Increase in government expenditures

Quiz Start Time: 08:25 AM

Time Left 89
sec(s)
Question # 4 of 20 ( Start time: 08:29:35 AM ) Total Marks: 1
The relationship between saving and income is known as the:
Select correct option:
45-degree line.
Consumption function.
Saving function.
Disposable income.

Quiz Start Time: 08:25 AM

Time Left 89
sec(s)
Question # 5 of 20 ( Start time: 08:30:55 AM ) Total Marks: 1
Suppose the total utility derived from first four units of a good consumed are 12, 22,
32, and 42 respectively. What is the marginal utility of the third unit?
Select correct option:
10.
13.
20.
33.

Quiz Start Time: 08:25 AM

Time Left 88
sec(s)
Question # 6 of 20 ( Start time: 08:32:10 AM ) Total Marks: 1
Naima has just finished school and is waiting to report to his new job at the beginning
of the month. Naima is considered to be:
Select correct option:
Structurally unemployed.
Frictionally unemployed.
Cyclically unemployed.
Employed.

Quiz Start Time: 08:25 AM

Time Left 56
sec(s)
Question # 6 of 20 ( Start time: 08:32:10 AM ) Total Marks: 1
Naima has just finished school and is waiting to report to his new job at the beginning
of the month. Naima is considered to be:
Select correct option:
Structurally unemployed.
Frictionally unemployed.
Cyclically unemployed.
Employed.

Quiz Start Time: 08:25 AM

Time Left 89
sec(s)
Question # 7 of 20 ( Start time: 08:33:23 AM ) Total Marks: 1
According to Classical economists, the aggregate demand is:
Select correct option:
Vertical.
Horizontal.
Upward sloping.
Downward sloping.

Quiz Start Time: 08:25 AM

Time Left 89
sec(s)
Question # 8 of 20 ( Start time: 08:34:46 AM ) Total Marks: 1
Which of the following do not affect a nation's balance of payments?
Select correct option:
Foreign income
The differential between domestic and foreign interest rates
The real exchange rate
Labor force

Quiz Start Time: 08:25 AM

Time Left 89
sec(s)
Question # 9 of 20 ( Start time: 08:35:29 AM ) Total Marks: 1
Which of the following factors would shift the demand curve for beef to the left?
Select correct option:
Increase in consumer’s income
Fall in prices of chicken
Shortage of beef
Rise in prices of mutton

Quiz Start Time: 08:25 AM

Time Left 89
sec(s)
Question # 10 of 20 ( Start time: 08:36:43 AM ) Total Marks: 1
Suppose a firm uses two factors, labor and capital, the optimum combination of
factors can be obtained at the point where:
Select correct option:
 PL/MPL > PK/MPK
PL/MPL < PK/MPK
MPL/PL = MPK/PK
MPL/PL < MPK/PK

Quiz Start Time: 08:25 AM

Time Left 89
sec(s)
Question # 11 of 20 ( Start time: 08:37:13 AM ) Total Marks: 1
Demand is elastic when the elasticity of demand is:
Select correct option:
Greater than 0.
Greater than 1.
Less than 1.
Less than 0.

Quiz Start Time: 08:25 AM

Time Left 89
sec(s)
Question # 12 of 20 ( Start time: 08:37:38 AM ) Total Marks: 1
The slope of the saving function (or line) is the:
Select correct option:
Average propensity to save.
Average propensity to consume.
Marginal propensity to save.
Marginal propensity to consume.

Quiz Start Time: 08:25 AM

Time Left 89
sec(s)
Question # 13 of 20 ( Start time: 08:38:08 AM ) Total Marks: 1
Suppose supply of agricultural products is price inelastic and government decides to
increase taxes on agricultural products. More of the tax burden in this case would fall
on:
Select correct option:
Producers.
Consumers.
Government.
Both producers and consumers.

Quiz Start Time: 08:25 AM

Time Left 89
sec(s)
Question # 14 of 20 ( Start time: 08:38:41 AM ) Total Marks: 1
Ehsan Chappal Store (ECS) is a leading shoes manufacturing company. If quantity
supplied of ECS shoes increases more than the increase in price, then one can
conclude that the supply curve for shoes is:
Select correct option:
Elastic.
Inelastic.
 Perfectly elastic.
Perfectly inelastic.

Quiz Start Time: 08:25 AM

Time Left 89
sec(s)
Question # 15 of 20 ( Start time: 08:39:02 AM ) Total Marks: 1
The price elasticity of demand measures the responsiveness of quantity demanded to:
Select correct option:
Quantity demanded.
Quantity supplied.
Price.
Output.

Quiz Start Time: 08:25 AM

Time Left 89
sec(s)
Question # 16 of 20 ( Start time: 08:39:36 AM ) Total Marks: 1
The long run aggregate supply will shift to the right whenever:
Select correct option:
The price level increases.
Factors of production (such as labor and capital) increase.
Expenditures (such as consumption and net exports) increase.
The prices of inputs (such as wages and the price of oil) decrease.

Quiz Start Time: 08:25 AM

Time Left 89
sec(s)
Question # 17 of 20 ( Start time: 08:40:52 AM ) Total Marks: 1
Which of the following is a benefit of real economic growth to a society?
Select correct option:
Everyone enjoys a greater nominal income.
The standard of living increases.
The burden of scarcity increases.
The society is less able to satisfy new wants.

Quiz Start Time: 08:25 AM

Time Left 89
sec(s)
Question # 18 of 20 ( Start time: 08:41:25 AM ) Total Marks: 1
The gold standard was an example of what kind of exchange-rate system?
Select correct option:
A freely floating exchange rate
A managed floating exchange rate
A fixed exchange rate
A non-convertible exchange rate

Quiz Start Time: 08:25 AM

Time Left 89
sec(s)
Question # 19 of 20 ( Start time: 08:41:50 AM ) Total Marks: 1
If price of MP3 players rises and as a result, the demand for headphones decreases,
then one can say that MP3 players and headphones are:
Select correct option:
Normal goods.
Substitutes.
Complements.
Inferior goods.

Quiz Start Time: 08:25 AM

Time Left 89
sec(s)
Question # 20 of 20 ( Start time: 08:42:13 AM ) Total Marks: 1
Final goods are:
Select correct option:
Inferior goods only.
For further processing.
Perishable goods only.
For Direct use by the consumers.

Quiz Start Time: 08:25 AM

Time Left 89
sec(s)
Question # 1 of 20 ( Start time: 08:25:07 AM ) Total Marks: 1
The law of diminishing returns states that as more units of a variable factor are added
to a fixed factor:
Select correct option:
Marginal utility falls.
The total product falls.
The marginal product falls.
The marginal product increases.

Quiz Start Time: 08:25 AM

Time Left 89
sec(s)
Question # 2 of 20 ( Start time: 08:26:36 AM ) Total Marks: 1
A negatively sloped isoquant implies:
Select correct option:
Products with negative marginal utilities.
Products with positive marginal utilities.
Inputs with negative marginal products.
Inputs with positive marginal products.

Quiz Start Time: 08:25 AM

Time Left 83
sec(s)
Question # 3 of 20 ( Start time: 08:28:07 AM ) Total Marks: 1
According to Classical economists, which of the following factors would increase the
level of output in the economy?
Select correct option:
 Increase in consumption
Increase in investment
Decrease in tax rate
Increase in government expenditures

Quiz Start Time: 08:25 AM

Time Left 89
sec(s)
Question # 4 of 20 ( Start time: 08:29:35 AM ) Total Marks: 1
The relationship between saving and income is known as the:
Select correct option:
45-degree line.
Consumption function.
Saving function.
Disposable income.

Quiz Start Time: 08:25 AM

Time Left 89
sec(s)
Question # 5 of 20 ( Start time: 08:30:55 AM ) Total Marks: 1
Suppose the total utility derived from first four units of a good consumed are 12, 22,
32, and 42 respectively. What is the marginal utility of the third unit?
Select correct option:
10.
13.
20.
33.

Quiz Start Time: 08:25 AM

Time Left 88
sec(s)
Question # 6 of 20 ( Start time: 08:32:10 AM ) Total Marks: 1
Naima has just finished school and is waiting to report to his new job at the beginning
of the month. Naima is considered to be:
Select correct option:
Structurally unemployed.
Frictionally unemployed.
Cyclically unemployed.
Employed.

Quiz Start Time: 08:25 AM

Time Left 56
sec(s)
Question # 6 of 20 ( Start time: 08:32:10 AM ) Total Marks: 1
Naima has just finished school and is waiting to report to his new job at the beginning
of the month. Naima is considered to be:
Select correct option:
Structurally unemployed.
Frictionally unemployed.
Cyclically unemployed.
 Employed.

Quiz Start Time: 08:25 AM

Time Left 89
sec(s)
Question # 7 of 20 ( Start time: 08:33:23 AM ) Total Marks: 1
According to Classical economists, the aggregate demand is:
Select correct option:
Vertical.
Horizontal.
Upward sloping.
Downward sloping.

Quiz Start Time: 08:25 AM

Time Left 89
sec(s)
Question # 8 of 20 ( Start time: 08:34:46 AM ) Total Marks: 1
Which of the following do not affect a nation's balance of payments?
Select correct option:
Foreign income
The differential between domestic and foreign interest rates
The real exchange rate
Labor force

Quiz Start Time: 08:25 AM

Time Left 89
sec(s)
Question # 9 of 20 ( Start time: 08:35:29 AM ) Total Marks: 1
Which of the following factors would shift the demand curve for beef to the left?
Select correct option:
Increase in consumer’s income
Fall in prices of chicken
Shortage of beef
Rise in prices of mutton

Quiz Start Time: 08:25 AM

Time Left 89
sec(s)
Question # 10 of 20 ( Start time: 08:36:43 AM ) Total Marks: 1
Suppose a firm uses two factors, labor and capital, the optimum combination of
factors can be obtained at the point where:
Select correct option:
PL/MPL > PK/MPK
PL/MPL < PK/MPK
MPL/PL = MPK/PK
MPL/PL < MPK/PK

Quiz Start Time: 08:25 AM

Time Left 89
sec(s)
Question # 11 of 20 ( Start time: 08:37:13 AM ) Total Marks: 1
Demand is elastic when the elasticity of demand is:
Select correct option:
Greater than 0.
Greater than 1.
Less than 1.
Less than 0.

Quiz Start Time: 08:25 AM

Time Left 89
sec(s)
Question # 12 of 20 ( Start time: 08:37:38 AM ) Total Marks: 1
The slope of the saving function (or line) is the:
Select correct option:
Average propensity to save.
Average propensity to consume.
Marginal propensity to save.
Marginal propensity to consume.

Quiz Start Time: 08:25 AM

Time Left 89
sec(s)
Question # 13 of 20 ( Start time: 08:38:08 AM ) Total Marks: 1
Suppose supply of agricultural products is price inelastic and government decides to
increase taxes on agricultural products. More of the tax burden in this case would fall
on:
Select correct option:
Producers.
Consumers.
Government.
Both producers and consumers.

Quiz Start Time: 08:25 AM

Time Left 89
sec(s)
Question # 14 of 20 ( Start time: 08:38:41 AM ) Total Marks: 1
Ehsan Chappal Store (ECS) is a leading shoes manufacturing company. If quantity
supplied of ECS shoes increases more than the increase in price, then one can
conclude that the supply curve for shoes is:
Select correct option:
Elastic.
Inelastic.
Perfectly elastic.
Perfectly inelastic.
Quiz Start Time: 08:25 AM
Time Left 89
sec(s)
Question # 15 of 20 ( Start time: 08:39:02 AM ) Total Marks: 1
The price elasticity of demand measures the responsiveness of quantity demanded to:
Select correct option:
 Quantity demanded.
Quantity supplied.
Price.
Output.

Quiz Start Time: 08:25 AM

Time Left 89
sec(s)
Question # 16 of 20 ( Start time: 08:39:36 AM ) Total Marks: 1
The long run aggregate supply will shift to the right whenever:
Select correct option:
The price level increases.
Factors of production (such as labor and capital) increase.
Expenditures (such as consumption and net exports) increase.
The prices of inputs (such as wages and the price of oil) decrease.
Quiz Start Time: 08:25 AM
Time Left 89
sec(s)
Question # 17 of 20 ( Start time: 08:40:52 AM ) Total Marks: 1
Which of the following is a benefit of real economic growth to a society?
Select correct option:
Everyone enjoys a greater nominal income.
The standard of living increases.
The burden of scarcity increases.
The society is less able to satisfy new wants.
Quiz Start Time: 08:25 AM
Time Left 89
sec(s)
Question # 18 of 20 ( Start time: 08:41:25 AM ) Total Marks: 1
The gold standard was an example of what kind of exchange-rate system?
Select correct option:
A freely floating exchange rate
A managed floating exchange rate
A fixed exchange rate
A non-convertible exchange rate
Quiz Start Time: 08:25 AM
Time Left 89
sec(s)
Question # 19 of 20 ( Start time: 08:41:50 AM ) Total Marks: 1
If price of MP3 players rises and as a result, the demand for headphones decreases,
then one can say that MP3 players and headphones are:
Select correct option:
Normal goods.
Substitutes.
Complements.
Inferior goods.
Quiz Start Time: 08:25 AM
Time Left 89
sec(s)
Question # 20 of 20 ( Start time: 08:42:13 AM ) Total Marks: 1
Final goods are:
Select correct option:
Inferior goods only.
For further processing.
Perishable goods only.
For Direct use by the consumers.
Quiz Start Time: 08:36 AM
Time Left 89
sec(s)
Question # 1 of 10 ( Start time: 08:36:39 AM ) Total Marks: 1
Suppose Ali increases his consumption of oranges when his income rises. This
implies that for Ali, oranges are:
Select correct option:
Normal good.
Giffen good.
Inferior good.
Normal and Giffen good.
Quiz Start Time: 08:36 AM
Time Left 89
sec(s)
Question # 2 of 10 ( Start time: 08:37:46 AM ) Total Marks: 1
Sugar can be produced from sugar beets. If the price of sugar beets falls, then:
Select correct option:
The demand curve for sugar would shift right.
The demand curve for sugar would shift left.
The supply curve for sugar would shift right.
The supply curve for sugar would shift left.

Quiz Start Time: 08:36 AM

Time Left 89
sec(s)
Question # 3 of 10 ( Start time: 08:38:13 AM ) Total Marks: 1
If there is a price ceiling, there will be:
Select correct option:
Shortages.
Surpluses.
Equilibrium.
None of the given options.
Quiz Start Time: 08:36 AM
Time Left 89
sec(s)
Question # 4 of 10 ( Start time: 08:38:56 AM ) Total Marks: 1
The relationship between consumer spending and income is known as the:
Select correct option:
45-degree line.
Consumption function.
Investment function.
Consumer price index.
Quiz Start Time: 08:36 AM
Time Left 88
sec(s)
Question # 5 of 10 ( Start time: 09:20:05 AM ) Total Marks: 1
If we measure consumer preferences numerically then it is commonly known as:
Select correct option:
Satisfaction.
Usage.
Pleasure.
Utility.
Quiz Start Time: 08:36 AM
Time Left 89
sec(s)
Question # 6 of 10 ( Start time: 09:21:18 AM ) Total Marks: 1
Arifa in her recent address in National assembly said that poverty should be reduced
in Pakistan. Which category her statement falls in?
Select correct option:
Normative
Positive
Negative
None of the given options
Quiz Start Time: 08:36 AM
Time Left 89
sec(s)
Question # 7 of 10 ( Start time: 09:21:43 AM ) Total Marks: 1
The demand price of a customer for one unit of a good is Rs. 50 and the market price
is Rs. 40, consumer surplus will be:
Select correct option:
Rs. 10
Rs.-10
Rs. 90
Rs 1.20
Quiz Start Time: 08:36 AM
Time Left 89
sec(s)
Question # 8 of 10 ( Start time: 09:23:03 AM ) Total Marks: 1
The saving function is:
Select correct option:
The level of planned saving for every change in disposable income.
The level of planned saving at different levels of disposable income.
The ratio of total saving to total disposable income.
The ratio of a change in planned saving to a change in disposable income.
Quiz Start Time: 08:36 AM
Time Left 89
sec(s)
Question # 9 of 10 ( Start time: 09:24:24 AM ) Total Marks: 1
Suppose Ali is consuming 20 units of Apples and 10 units of bananas with his given
income. Suddenly his level of income increases and he starts consuming more of both
goods. For Ali, both goods are:
Select correct option:
Normal Goods.
Substitutes.
 Complements.
Giffen Goods.
Quiz Start Time: 08:36 AM
Time Left 89
sec(s)
Question # 10 of 10 ( Start time: 09:24:47 AM ) Total Marks: 1
The optimal point of consumption is that point where consumer surplus becomes:
Select correct option:
Zero.
Maximum.
Minimum.
Positive.
Quiz Start Time: 09:39 AM
Time Left 89
sec(s)
Question # 1 of 20 ( Start time: 09:39:14 AM ) Total Marks: 1
Suppose Ali increases his consumption of oranges when his income rises. This
implies that for Ali, oranges are:
Select correct option:
Normal good.
Giffen good.
Inferior good.
Normal and Giffen good.
Quiz Start Time: 09:39 AM
Time Left 89
sec(s)
Question # 2 of 20 ( Start time: 09:40:06 AM ) Total Marks: 1
If a good is having inelastic demand then if price rises:
Select correct option:
Quantity demanded of good rises.
Quantity supplied of good falls.
Total revenue of good rises.
Total revenue of good falls.
Quiz Start Time: 09:39 AM
Time Left 89
sec(s)
Question # 3 of 20 ( Start time: 09:42:35 AM ) Total Marks: 1
Arif decides to work for an extra hour rather than playing cricket with his friends. He
gets Rs. 500 for an extra hour. His opportunity cost of working for an extra hour is:
Select correct option:
Rs. 500.
Pleasure that he would have received from playing cricket.
Rs.500 minus pleasure that he would have received from playing cricket.
Undetermined.
Quiz Start Time: 09:39 AM
Time Left 89
sec(s)
Question # 4 of 20 ( Start time: 09:43:38 AM ) Total Marks: 1
An important difference between the approaches of the classical and Keynesian
economists use to achieve a macroeconomic equilibrium is that:
Select correct option:
Keynesian economists actively promote the use of fiscal policy; the classical
economists do not
Keynesian economists actively promote the use of monetary policy to improve
aggregate economic performance; classical economists do not
classical economists believe that monetary policy will certainly affect the level
of output; Keynesians believe that money growth affects only prices
classical economists believe that fiscal policy is an effective tool for achieving
economic stability; Keynesians do not
Quiz Start Time: 09:39 AM
Time Left 89
sec(s)
Question # 5 of 20 ( Start time: 09:44:44 AM ) Total Marks: 1
The slope of budget line –Px/PY is also called:
Select correct option:
Input ratio.
Output price ratio.
Input price ratio.
Output ratio.
Quiz Start Time: 09:39 AM
Time Left 89
sec(s)
Question # 6 of 20 ( Start time: 09:46:14 AM ) Total Marks: 1
Oligopoly differs from monopolistic competition in that an oligopoly includes:
Select correct option:
Product differentiation.
No barriers to entry.
Barriers to entry.
Downward sloping demand curves facing the firm.
Quiz Start Time: 09:39 AM
Time Left 89
sec(s)
Question # 7 of 20 ( Start time: 09:46:39 AM ) Total Marks: 1
Suppose we find that the cross-price elasticity of demand for two products is a
negative number. We know that the two goods are:
Select correct option:
Normal goods.
Inferior goods.
Substitutes.
Complements.
Quiz Start Time: 09:39 AM
Time Left 89
sec(s)
Question # 8 of 20 ( Start time: 09:47:23 AM ) Total Marks: 1
When the price of CD players increases, its total revenue decreases. This shows that
demand for CD players is:
Select correct option:
Unstable.
Price inelastic.
Price elastic.
 Unit price elastic.
Quiz Start Time: 09:39 AM
Time Left 89
sec(s)
Question # 9 of 20 ( Start time: 09:48:46 AM ) Total Marks: 1
Revenue is equal to price times:
Select correct option:
Quantity.
Quantity minus total cost.
Quantity minus average cost.
Quantity minus marginal cost.
Quiz Start Time: 09:39 AM
Time Left 89
sec(s)
Question # 10 of 20 ( Start time: 09:50:15 AM ) Total Marks: 1
Engel curve shows the positive relationship between quantity demanded of normal
good and:
Select correct option:
Price.
Supply.
Income.
Money supply.
Quiz Start Time: 09:39 AM
Time Left 89
sec(s)
Question # 11 of 20 ( Start time: 09:51:37 AM ) Total Marks: 1
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.
Government debt.
None of the given.
Quiz Start Time: 09:39 AM
Time Left 89
sec(s)
Question # 12 of 20 ( Start time: 09:52:25 AM ) Total Marks: 1
If firms in a competitive industry are experiencing losses in the short run, then:
Select correct option:
The firms will try to raise prices.
Some firms will choose to shut down.
The industry will cease to exist.
New firms will enter the industry.
Quiz Start Time: 09:39 AM
Time Left 89
sec(s)
Question # 13 of 20 ( Start time: 09:53:01 AM ) Total Marks: 1
If consumer’s incomes remain constant, then demand for product Y will:
Select correct option:
Necessarily remain unchanged.
Shift to the right if Y is a complementary good.
 Shift to the right if Y is a normal good.
Shift to the right if Y is an inferior good.
Quiz Start Time: 09:39 AM
Time Left 89
sec(s)
Question # 14 of 20 ( Start time: 09:54:22 AM ) Total Marks: 1
There will be excess supply in the market due to:
Select correct option:
Price ceiling.
Price rationing.
Price floor
All of the given options,
Quiz Start Time: 09:39 AM
Time Left 89
sec(s)
Question # 15 of 20 ( Start time: 09:55:47 AM ) Total Marks: 1
If Nestle Company has elastic demand for nestle juices, then increase in price of
Nestle juices will:
Select correct option:
Increase total revenue.
Decrease total revenue.
Bring no change in total revenue.
Decrease marginal revenue.
Quiz Start Time: 09:39 AM
Time Left 89
sec(s)
Question # 16 of 20 ( Start time: 09:56:44 AM ) Total Marks: 1
Those who hold the classical view of the labour market are likely to believe that
Select correct option:
Monetary, but not fiscal policy will have an effect on output and employment
Fiscal but not monetary policy will have an effect on output and employment.
Both monetary and fiscal policy will have an effect on output and
employment.
Neither monetary nor fiscal policy will have an effect on output and
employment.
Quiz Start Time: 09:39 AM
Time Left 89
sec(s)
Question # 17 of 20 ( Start time: 09:57:30 AM ) Total Marks: 1
Suppose a firm produces 20 units of output and incurs Rs.40 in average variable cost
and Rs.8 in average fixed cost, average total cost is:
Select correct option:
40.
35.
48.
60.
Quiz Start Time: 09:39 AM
Time Left 89
sec(s)
Question # 18 of 20 ( Start time: 09:58:29 AM ) Total Marks: 1
When the price of wheat rises by 10%, the quantity of wheat purchased falls by 4%.
This shows that the demand for wheat is:
Select correct option:
Perfectly elastic.
Unit elastic.
Price elastic.
Price inelastic.
Quiz Start Time: 09:39 AM
Time Left 89
sec(s)
Question # 19 of 20 ( Start time: 09:59:57 AM ) Total Marks: 1
Suppose a person is willing to give up 20 units of good A (on the vertical axis) for 10
units of good B (on the horizontal axis), and his level of satisfaction is unchanged, the
marginal rate of substitution is:
Select correct option:
0.5.
2.
5.
10.
Quiz Start Time: 09:39 AM
Time Left 89
sec(s)
Question # 20 of 20 ( Start time: 10:00:58 AM ) Total Marks: 1
The process by which we limit the supply or amount of some economic factor which
is scarcely available is called:
Select correct option:
Rationing.
Bundling.
Price floor.
Price ceiling.