ECO 404 100% MCQ

Question 1 of 20
The price that equates the quantity demanded with the quantity supplied is called:
Select correct option:
Equilibrium price
Price floor
Support price
Nominal Price

Question 2 of 20
In fiscal policy, tax rates are determined by the:
Select correct option:
Government
Central bank
General public
Commercial bank


Question 3 of 20
Percentage change in profit due to one unit change in sales is known as:
Select correct option:
Degree of operating leverage
Economies of scale
Degree of freedom
Cost elasticity


Question 4 of 20
Which economist introduces the simplex method?
Leonid Kantorovich
George B Dantzig
John von Neumann
Ioel Dean

Question 5 of 20
Change in total cost caused by one unit change in output is known as:
Select correct option:
Marginal revenue
Average revenue
Marginal cost
Average cost

Question 6 of 20
Suppose Y = f(x), if Y = 16X + 57? then what will be dY/dX according to rules of
differentiation?
Select correct option:
16
16X
57
57X


Question 7 of 20
Which of the following is also known as analysis of variance?
Select correct option:
T statistic
Z statistic
F statistic
Durbin Watson Statistic

Question 8 of 20
Firms are price makers in which of the following market structures?
Select correct option:
Perfect competition
Monopoly
Monopolistic competition
Oligopoly

Question 9 of 20
We get the point of optimal input combination if:
Select correct option:
lsocost and lsoquant curves are tangent
Budget line and indifference curves are tangent
Demand and supply curves intersect
Isocost and supply curve intersect

Question 10 of 20
lf the percentage change in profit is Rs. 400 and percentage change in sales is Rs. 100 then
what will be the degree of operating leverage?
1
2
3
4
Question 11 of 20
Which of the following computer soft wares are used to solve the problem of linear
programming'?
Select correct option:
Fore Profit software
LINDU
MS Excel Solver
All of the above
Question 12 of 20
Which of the following is a behavioral equation?
Select correct option:
GNP=C+I+G
St=b0+btRt+u1
Profit = TR / TC
None of the given options
Question 13 of 20
If oligopoly firm is producing homogenous product, it is known as:
Select correct option:
Pure oligopoly
Differentiated oligopoly
Triopoly
Monopoly
If there are three sellers, we have Triopoly.
If the product is homogenous, it is called pure oligopoly.
If the product is differentiated, it is called differentiated oligopoly.
Question 14 of 20
Cigarettes are an example of which type of market structure?
Select correct option:
Perfect competition
Monopoly
Monopolistic competition
Oligopoly
Question 15 of 20
The branch of economics which deals with the study of overall behavior of the economy is
known as:
Select correct option:
Microeconomics
Macroeconomics
Development economics
Mathematical economics
Question 16 of 20
Short run average cost curves are U-shaped because of:
Select correct option:
The law of diminishing returns
The law of diminishing utility
The law of demand
The law of supply
Question 17 of 20
Derived demand is also known as:
Select correct option:
Consumer's demand
Direct demand
Market demand
Business demand
Question 18 of 20
Percentage change in output due to 1% change in inputs is called:
Select correct option:
Output elasticity of inputs
Inputs elasticity of output
Elasticity of substitution
Cross price elasticity
Question 19 of 20
Which of the following is TRUE for the law of supply'? :
Select correct option:
There is inverse relationship between the price of a good and quantity demanded of that good
There is positive relationship between the price of a good and quantity demanded of that good
There is positive relationship between the price of a good and quantity supplied of that good
There is inverse relationship between income and quantity supplied of a good
Question 20 of 20
Which of the following shows accounting profit of the firm'?
Select correct option:
Total revenue + explicit or accounting costs of production
Total revenue - explicit or accounting costs of production
Total revenue / explicit or accounting costs of production
Total revenue X explicit or accounting costs of production