Bonus Quiz For Econone - T3 Ay0910

60 Questions | Total Attempts: 131

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Bonus Quiz For Econone - T3 Ay0910 - Quiz

This is a bonus quiz for third term, AY09-10 DLSU ECONONE students of Paulo Mutuc.


Questions and Answers
  • 1. 
    Economic Cost...
    • A. 

      Is generally bigger than Accounting Cost

    • B. 

      Is Accounting Cost + Opportunity Cost

    • C. 

      A and B

    • D. 

      None of the above

  • 2. 
    Economic outcomes are judged by all or any of the following criteria, except for:
    • A. 

      Growth

    • B. 

      Stability

    • C. 

      Efficiency

    • D. 

      Sufficiency

    • E. 

      Equity

  • 3. 
    What is the slope of the line Y = 5x + 10?
    • A. 

      5

    • B. 

      1/5

    • C. 

      10

    • D. 

      1/10

  • 4. 
    "Absolute advantage" means one party facing lower opportunity cost compared to another in the performance of a task or the production of a good.
    • A. 

      True

    • B. 

      False

  • 5. 
    Points lying on the same indifference curve represent...
    • A. 

      Quantities of two goods that exhaust a person's budget

    • B. 

      Quantities of two goods that make a person equally happy

    • C. 

      Quantities of two goods that exhaust a person's budget and make her equally happy

    • D. 

      None of the above

  • 6. 
    A donward-sloping Income Consumption Curve implies...
    • A. 

      An Inferior good

    • B. 

      A Normal good

    • C. 

      A "bad"

  • 7. 
    A firm's short run total cost curve...
    • A. 

      Has a constant slope

    • B. 

      Begins at the origin

    • C. 

      Is the firm's variable cost curve plus any fixed cost

    • D. 

      All of the above

  • 8. 
    The bulk of the burden of a tax falls on...
    • A. 

      Consumers--if the demand curve is more elastic than the supply curve

    • B. 

      Producers--if the demand curve is more elastic than the supply curve

    • C. 

      Depends on which side of the market the tax is imposed

  • 9. 
    A price ceiling tends to result in a...
    • A. 

      Shortage

    • B. 

      Surplus

    • C. 

      Either A or C

  • 10. 
    Raising the price of a good with a demand elasticity equal to -1 will...
    • A. 

      Increase revenue for the producer

    • B. 

      Leave the producer's revenue unchanged

    • C. 

      Decrease producer's revenue

    • D. 

      Have an uncertain impact on revenue

  • 11. 
    Giffen goods are Veblen goods.
    • A. 

      True

    • B. 

      False

    • C. 

      It depends

  • 12. 
    Giffen goods have upward sloping demand curves because...
    • A. 

      Are actually supply curves

    • B. 

      Are inferior goods

    • C. 

      They have no close substitutes

    • D. 

      They are more desirable as their prices increase

  • 13. 
    A positive cross price elasticity of one good in terms of another means that the two are...
    • A. 

      Luxuries

    • B. 

      Necessities

    • C. 

      Substitutes

    • D. 

      Complements

    • E. 

      Independent

  • 14. 
    The broader a market is defined to be, the more ________ market demand is.
    • A. 

      Inelastic

    • B. 

      Elastic

    • C. 

      Uncertain

  • 15. 
    In the long run, supply, in general, tends to be more...
    • A. 

      Inelastic

    • B. 

      Elastic

    • C. 

      Uncertain

  • 16. 
    A person's labor supply curve...
    • A. 

      Is indefinitely upward-sloping

    • B. 

      Is upward-sloping in some regions due to a dominant substitution effect

    • C. 

      Is upward-sloping in some regions due to a dominant income effect

  • 17. 
    Every point on the production possibilities frontier is technically efficient.
    • A. 

      True

    • B. 

      False

    • C. 

      It depends

  • 18. 
    In consumer theory, the best affordable bundle (combination) of x and y lies below the budget line.
    • A. 

      True

    • B. 

      False

    • C. 

      It depends

  • 19. 
    Consumer surplus...
    • A. 

      Is the total difference between a good's market price and consumers' willingness to pay for the good

    • B. 

      If the demand curve is straight line and downward sloping, represented by the area of the triangle formed by the intersection of supply and demand at equilibrium price under the demand curve

    • C. 

      A and B

    • D. 

      None of the above

  • 20. 
    Opportunity cost...
    • A. 

      Is the value of the best alternative foregone

    • B. 

      Is the value of all alternatives foregone

    • C. 

      Is the value of the alternative chosen

  • 21. 
    The demand curve will slope downward as long as the income effect dominates the substitution effect.
    • A. 

      True

    • B. 

      False

    • C. 

      It depends

  • 22. 
    The degree of responsiveness of one variable when another variable changes.
    • A. 

      Slope

    • B. 

      Percent change

    • C. 

      Elasticity

  • 23. 
    A firm's marginal costs in the short run...
    • A. 

      Initially decrease until reaching a minimum, then increase

    • B. 

      Initially increase until reaching a maximum, then decrease

    • C. 

      Is constant

  • 24. 
    A cardinal approach to utility is based on "revealed preference" (i.e. people indicating and ranking their choices).
    • A. 

      True

    • B. 

      False

    • C. 

      It depends

  • 25. 
    Holding on to something because of "sentimental value" simply means a willingness to forgo all price offers or a refusal to sell at any price--making the owner the highest bidder.
    • A. 

      True

    • B. 

      False

    • C. 

      It depends

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