ECN 101 CBT PRACTICE TEST

Given the demand function for milk as Qd = 120 – 3P, and supply function as Qs =50 + 4P, the equilibrium quantity is

The sum of the average variable cost and average fixed cost gives

The economic term for the satisfaction and fulfilment that people derive from the
consumption of goods and services is referred to as ......

The study of aggregate economic variables is the primary concern of......

The following are contained in Article of Association of a limited liability company
EXCEPT:

The fundamental economic problems facing all societies arise because of

Which of the following is true of a perfectly competitive firm?

Which of the following gives the reason why it would be logically impossible for two indifference curves to cross?

Which of the following indicates the negative slope of the indifference curve?

The following are determinants of quantity demanded of a commodity

EXCEPT

Which of the following profit concepts does not include implicit cost elements?

Goods that have prices and their production requires scarce resources which have
alternative uses are referred to as

The following are advantages of division of labour EXCEPT:

When the price of a given commodity rises above the equilibrium price, the quantity
supplied of that commodity

The output per unit of the variable factor employed is called

At the levels of output where the Average Cost is falling, the marginal cost is

All things being equal, the economic good whose demand decreases when the
consumer’s income increases, is classified as ......................goods.

The adjustment of demand to the relative price change alone is called

Pure capitalism is an economic system characterized by: I. Private ownership of productive resources
II Freedom of choice and enterprise
III Competition

When a 15 percent increase in the price of a product leads to a 25 percent increase in the quantity supplied of the product, then the price elasticity of supply coefficient is

Which of the following is a statement in positive economics?

Which of the following is not responsible for a shift in supply curve?

The necessary condition for a firm to be at equilibrium at a given output level is
where:

The production possibilities curve CAN NOT be usefully employed to illustrate

The demand curve faced by a pure monopoly is

Which of the following best describes a tabular arrangement of various prices of a commodity and the corresponding quantities purchased at a given time?

Which of the following is not a possible source of finance of a sole proprietorship?

Increase in all inputs by a certain percentage resulting in a relatively higher percentage increase in output is referred to as:

The theory of consumer behaviour is propounded primarily to I. Validate the law of demand
II. Disprove the law of demand
III. Rationalize the downward sloping demand curve

The presumption that the average consumer will always maintain the utility
maximization position in his spending is referred to as

The demand of a product for the production of another commodity is referred to as
....................

An increase in subsidies and reduction of taxes will shift the supply curve to the
...................

When the price elasticity of supply coefficient is greater than 1, the supply of the product
is said to be

The graphical relationship between price and quantity purchased of a particular
commodity is called .......................

Economics can best be defined as the study of

Which of the following factors does not determine price elasticity of demand for
particular goods?

Which of the following statements is true of the perfectly competitive firm?

The economic system characterized by private ownership of resources i s.........

The economist who defined Economics as the social science which studies human
behaviour as a relationship between ends and scarce means which have alternative
uses is ...................

The responsiveness of the quantity demanded of one commodity to a change in the price of another commodity defines

For Pair Production phenomenon to occur the photon must have energy,greater than

or equal to____________

The monopoly firm is in short-run equilibrium when

A good is described as inferior when its income elasticity of demand coefficient is

Kinked demand curve is associated with:

The demand curve facing each firm in perfect competition is