Review Test Submission: Exercise - 1

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User Mr. Anand Balaso Chavan Course Managerial Economics (Micro)

Test Exercise - 1 Started 1/7/14 5:05 PM

Submitted 1/21/14 4:32 PM Status Completed

Attempt Score 37.25 out of 39 points   Time Elapsed 335 hours, 27 minutes. Instructions

Question 1

1 out of 1 points

 

What is meant by economics?Answer

Selected Answer:    The study that deals with the decision and allocation of the resources.

Question 2

1 out of 1 points

 

________ market is based on law of supply and demand and prices of goods and services.Answer

Selected Answer:   free

Question 3

1 out of 1 points

 

What are the two basic concepts of economics?Answer

Selected Answer:    Production possibility frontier and opportunity cost

Question 4

1 out of 1 points

  What is the meaning of a market economy?

Answer

Selected Answer:

   A type of economic system in which the trading and exchange of goods and services and information takes place in a free market.

Question 5

1 out of 1 points

 

"In Command Economy, government can utilise land, labour and capital to fulfil its political and economic agenda."Answer

Selected Answer:  True

Question 6

1 out of 1 points

 

What is the meaning of opportunity cost?Answer

Selected Answer:    The value of what is given up in order to have something else.

Question 7

1 out of 1 points

 

Opportunity cost is similar for each individual and nation.Answer

Selected Answer:  False

Question 8

1 out of 1 points

 

Which of the following is not a scarce resource for individual?Answer

Selected Answer:    Capital

Question 9

1 out of 1 points

  Which of the following is not a scarce resource for a country?

Answer

Selected Answer:    Time

Question 10

1 out of 1 points

 

Each individual and nation will have same set of values and due to same level of scarce resources; their decision on utilisation of those resources is also same.Answer

Selected Answer:  False

Question 11

1 out of 1 points

 

"Producers decide which goods are to be produced in what quantity, depending on _______ demand."Answer

Selected Answer:   consumer

Question 12

1 out of 1 points

 

A _____ good is one which people consume more as price rises.Answer

Selected Answer:   giffen

Question 13

1 out of 1 points

 

"In price ceiling, the consumers can afford some essential goods or services that they could not afford at the ___________ price."Answer

Selected Answer:   equilibrium

Question 14

1 out of 1 points

 

"In Perfectly Inelastic Demand ,the entire tax portion is absorbed by the _____________."Answer

Selected Answer:   buyer

Question 15

1 out of 1 points

 

"If the price of a product is unfairly high, the government can set a price floor."Answer

Selected Answer:  False

Question 16

1 out of 1 points

 

The change in demand is less in comparison to change in price in inelastic demand.Answer

Selected Answer:  True

Question 17

1 out of 1 points

 

Equilibrium is a price where there is no surplus and deficit of goods.Answer

Selected Answer:  True

Question 18

1 out of 1 points

 

In Perfectly Elastic Demand who will be responsible to pay tax?Answer

Selected Answer:    Supplier

Question 19

1 out of 1 points

 

Which concept is applicable for higher price?Answer

Selected Answer:    Price Ceiling

Question 20

1 out of 1 points

 

What is the rate of quantity demanded due to price change called?Answer

Selected Answer:    Price elasticity of demand

Question 21

1 out of 1 points

 

Which of the following two approaches are used in utility theory?Answer

Selected Answer:    Cardinal and Ordinal approach

Question 22

0.25 out of 1 points

 

Match the following.Answer

Question Selected Match

Average Product curve rises with the rise in  B.  Marginal Product of Labour

 The amount by which output rises with addition of one extra unit of a variable factor

 C.  Average Product of Labour

The relationship between production factor and output  A.  Production Function

Ratio of output to the number of units of labour  D.  Marginal Product curve

Question 23

1 out of 1 points

 

"What will be the total utility , if a person consumes five units of commodity and derives U1, U2, U3, U4 and U5 utility from the successive units of goods?"Answer

Selected Answer:    U1 + U2 + U3 + U4 + U5

Question 24

1 out of 1 points

 

What is the additional satisfaction or amount of utility gained from each extra unit of consumption called?Answer

Selected Answer:    Marginal Utility

Question 25

0 out of 1 points

 

The _______ product curve rises with the rise in Marginal Product curve.Answer

Selected Answer:   avarage

Question 26

1 out of 1 points

 

PPF stands for Production Possibility Frontier.Answer

Selected Answer:  True

Question 27

1 out of 1 points

 

The slope of total ______ curve for labour is equal to change in output (?Q) divided by change in units of labour (?L).Answer

Selected Answer:   product

Question 28

1 out of 1 points

 

The marginal utility comes to ______ when the total utility is maximum.Answer

Selected Answer:   zero

Question 29

1 out of 1 points

  "Which of the following is an abstract concept rather than a concrete, observable quantity?"Answer

Selected Answer:    Utility Theory

Question 30

1 out of 1 points

 

"Consumption of more amounts of goods and services up to certain extent is acceptable, beyond which a saturation point will be reached, which may reduce the total _________."Answer

Selected Answer:   utility

Question 31

1 out of 1 points

 

Firms use ______________ factor to produce products.Answer

Selected Answer:   production

Question 32

1 out of 1 points

 

Period of time where at least one factor of production or variable is fixed is called _______ run.Answer

Selected Answer:   short

Question 33

1 out of 1 points

 

The relationship between production factor and output is called _______________function.Answer

Selected Answer:   production

Question 34

1 out of 1 points

 

"_______ is an abstract concept rather than a concrete, observable quantity."Answer

Selected Answer:   utility

Question 35

1 out of 1 points

 

Which is the ratio of output to the number of units of labour?Answer

Selected Answer:    Average Product of Labour

Question 36

1 out of 1 points

 

Marginal product curve declines and reaches zero when the total product curve achieves ________value.Answer

Selected Answer:   maximum

Question 37

1 out of 1 points

 

"When marginal product is ________ average product, then the average product is rising."Answer

Selected Answer:   above

Question 38

1 out of 1 points

 

When the total product curve moves downward the marginal product curve becomes __________.Answer

Selected Answer:   negative

Question 39

1 out of 1 points

 

Total product _____ shows the quantity of outputs can be obtained from different amount of variable factor of production.Answer

Selected Answer:   curve

Tuesday, January 21, 2014 4:32:53 PM IST