Eco401 economics session 4 marks: 40 _ _ _ please read the following instructions carefully before attempting any question: this exam consists of 10 multiple choice questions mcq’s carrying 1 mark each, 5 true/false carrying 1 mark each, 3 short questions carrying 5 marks each and 1 long for each mcq, read the choices available and encircle one which you consider is the most suitable answer. Only encircle the correct option.zero marks will be given if more than one option will be encircled. attempt all mcq’s on the question paper, no credit will be given to the mcq’s attempted on the answer sheet. remember not to spend too much time on any mcq, since all mcq’s carry equal marks. how to use this group: before asking about any assignment/gdb/online quiz solution to others, you should be checked the discussion forum topic list to avoid the lean in this group.

You can also search the assignment/gdb/online quiz solution by the subject code or name through discussion search bar that is available on the discussion forum. Before asking about any assignment/gdb/online quiz solution to others, you should be checked the discussion forum topic list to avoid the lean in this group. If nestle company has elastic demand for nestle juices, then, increase in price of nestle juices will: bring no change in total revenue 5. Since more substitutes of pepsi are available in the market like coca cola, sprite etc. If government imposes a price ceiling on wheat, which of the following will occur in the market for wheat? there will be excess demand for wheat there will be excess supply for wheat the demand curve for wheat will shift leftward the supply curve for wheat will shift rightward 7.

Which of the following is a characteristic of a mixed economy? resources are governed by both government and individuals it utilizes the characteristics of both market economy and planned economy people are free to market their decisions and government controls the demand all of the given options are true 8. The minimum price that a government sets to support a desired commodity or service in a society is known as: 9. Suppose a teacher organizes a study group by reserving a meeting room, compiling study materials and attracting students. The meeting room would most likely be which of the following factors of production? 11. Suppose second hand television is inferior good for consumers, then due to fall in consumer’s income, the demand for second hand television will: 12.

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If the cross price elasticity of demand between two products is 3.5, then: one of the product is expensive and one is relatively unexpensive one product is normal good and the other is an inferior good the two products are complement the two products are substitutes 13. If the supply of a product decreases and supply curve shifts leftward, and the demand for that product simultaneously increases and demand curve shifts rightward, then equilibrium: 14. Asifa while addressing the young parliamentarians said that rising inflation in pakistan was due to the high interest rates. Suppose akj company is manufacturing leather goods and has inelastic demand for leather products. 3 need answers of following questions the positive slope of indifference curve shows that: ► both goods are inferior. all of the following would increase the productivity of labor except: ► an increase in the size of the labor force.

if you employ 20 workers in the production of picture frames, the way to determine the quantity of output these workers can produce is through a n: ► indifference curve. if in a production process, all inputs are increased by 20% but ouput increases by less than 20%. It shows that firm experiences. ► decreasing returns to scale. which of the following is true for prospective sunk cost? ► they do not occur when output equals zero. ► they are relevant to economic decision making.

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► they are considered as investment decisions. What is the variable cost? eco401 economics mega solve mid term paper eco401 economics session 2 question no: 1 marks: 1 please choose one an individual whose attitude towards risk is known as: none of the given options. Question no: 2 marks: 1 please choose one the concept of a risk premium applies to a person that is: question no: 3 marks: 1 please choose one a normative economic statement: is a statement of fact. Question no: 4 marks: 1 please choose one economics is different from other social sciences because it is primarily concerned with the study of _, it is similar to other social sciences because they are all concerned with the study of _.

Question no: 5 marks: 1 please choose one because of the relationship between a perfectly competitive firm's demand curve and its marginal revenue curve, the profit maximization condition for the firm can be written as: question no: 6 marks: 1 please choose one a welfare loss occurs in monopoly where: the price is greater than the marginal cost. Question no: 7 marks: 1 please choose one the perfect information assumption of perfect competition includes all of the following except: consumers know their preferences. Question no: 8 marks: 1 please choose one in figure given above, the marginal utility of income is: increasing as income increases. Question no: 9 marks: 1 please choose one a consultant for mattel the producer of barbie reports that their long run average cost curve is decreasing.

In other words, he is saying that: the firm has increasing returns to scale and the law of diminishing marginal productivity does not apply to this firm. The firm has decreasing returns to scale and the law of diminishing marginal productivity does not apply to this firm. The firm has increasing returns to scale but the law of diminishing marginal productivity may still apply to this firm. The firm has decreasing returns to scale but nonetheless the law of diminishing marginal productivity may still apply to this firm.

Question no: 10 marks: 1 please choose one if the cross price elasticity of demand between two goods x and y is positive it means that goods are: question no: 11 marks: 1 please choose one a demand schedule is best described as: a numerical tabulation of the quantity demanded of a good at different prices, ceteris paribus. A systematic listing of all the variables that might conceivably bring about a change in demand. Question no: 12 marks: 1 please choose one which of the following best expresses the law of demand? a higher price reduces demand. Question no: 13 marks: 1 please choose one which of the following would most likely shift the production possibilities curve for a nation outward? a reduction in unemployment. Question no: 14 marks: 1 please choose one the primary use of the kinked demand curve is to explain price rigidity in: monopolistic competition.

Question no: 15 marks: 1 please choose one a monopolistically competitive firm in short run equilibrium: will make negative profit lose money. Question no: 16 marks: 1 please choose one a market with few entry barriers and with many firms that sell differentiated products is: monopolistically competitive. Question no: 17 marks: 1 please choose one the maximum price that a consumer is willing to pay for a good is called: the reservation price. Question no: 18 marks: 1 please choose one third degree price discrimination involves: charging each consumer the same two part tariff. Charging different prices to different groups based upon differences in elasticity of demand. Question no: 19 marks: 1 please choose one a tennis pro charges $15 per hour for tennis lessons for children and $30 per hour for tennis lessons for adults. Question no: 20 marks: 1 please choose one an electric power company uses block pricing for electricity sales.

Question no: 21 marks: 1 please choose one at the minimum of its average total cost curve. Question no: 22 marks: 1 please choose one marginal revenue minus marginal cost. Question no: 23 marks: 1 please choose one if current output is less than the profit maximizing output then which of the following must be true? total revenue is less than total cost. Question no: 24 marks: 1 please choose one at the profit maximizing level of output, what is true of the total revenue tr and total cost tc curves? they must intersect with tc cutting tr from below. Question no: 25 marks: 1 please choose one the total cost tc of producing computer software diskettes q is given as: tc 200 + 5q. Question no: 26 marks: 1 please choose one in order for a taxicab to be operated in new york city, it must have a medallion on its hood.