ECO401 FinalTerm Most Important Repeated Mcqs Online Quiz ECO401 FINALTERM MOST IMPORTANT REPEATED MCQS ONLINE QUIZ ECO401 quiz helps us to increase our knowledge 1 / 30 If imports = exports, then we have Current account balance Capital account balance Statistical discrepancy Balanced Budget. 2 / 30 Which of the following is NOT an account in the balance ofpayments Capital account Financial account Current account Future account 3 / 30 If isoquants are straight lines, it means that Only one combination of inputs is possible There is constant returns to scale Inputs have fixed costs at all use rates The marginal rate of technical substitution of inputs is constant 4 / 30 Production possibilities curve will shift upward if thereis A reduction in unemployment. An increase in the production of capital goods A reduction in discrimination All of the given options 5 / 30 The situation when a country imports more than itexports is known as A trade deficit A trade surplus An expansion A recession 6 / 30 In a period of boom, credit creation is Small Heavy Unchanged Zero 7 / 30 Which of the following is TRUE? 1 − MPS = MPC 1 + MPS = MPC 1 / MPS = MPC 1 × MPS = MPC 8 / 30 In the long run, the output level is determined by: Aggregate demand Aggregate supply The government Household income 9 / 30 Classical economics was replaced as the dominanttheory of macroeconomic analysis by Monetarism Rational expectations Keynesian economics Neoclassical economics 10 / 30 In the Keynesian cross model, the 45-degree line has a slope of 45 1 Infinity 0 11 / 30 Which of the following shows the Fisher equation of exchange MT=PV VT=PM MV=PQ MY=VP 12 / 30 The slope of the consumption function (or line) is the Average propensity to save Average propensity to consume Marginal propensity to consume Marginal propensity to save 13 / 30 All other things remain the same, Gross Domestic Product (GDP)will rise if Imports rises Exports falls Durable goods consumption rises Military spending falls 14 / 30 Which of the following is NOT a stock variable? Government debt. Capital The amount of money held by the public Inventory investment 15 / 30 Real Gross Domestic Product (GDP) Is nominal GDP adjusted for changes in the price level. Is also called nominal GDP Measures GDP minus depreciation of capital Will always change when prices change 16 / 30 Intermediate goods are meant for Direct use by the consumers Further processing The term do not exist None of the given options 17 / 30 The price elasticity of demand for any good must be less than orequal to zero unless The good is a necessity The good is a luxury The good is a Giffen good None of the given options 18 / 30 As compared to existing firms, a new firm entering in monopolistmarket has High costs Low costs Equal costs None of the given options 19 / 30 Indifference curves that are convex to the origin reflect An increasing marginal rate of substitution A decreasing marginal rate of substitution A constant marginal rate of substitution A marginal rate of substitution that first decreases, then increases 20 / 30 What would result from a depreciation of the pound on theforeign exchange market An increase in the price of imported computers A fall in the purchasing power of US tourists in London A fall in the price of imported computers An increase in the purchasing power of UK tourists overseas 21 / 30 A currency appreciation should Reduce net exports and therefore increase aggregate demand Raise net exports and therefore decrease aggregate demand Reduce net exports and therefore decrease aggregate demand Raise net exports and therefore increase aggregate demand 22 / 30 Current account deficit is equal to: Private sector resource deficit Government budget deficit Private sector resource deficit + Government budget deficit None of the given options 23 / 30 Which of the following is NOT a stock variable? Government debt Capital The amount of money held by the public Inventory investment 24 / 30 Which of the following is a flow variable? The value of the house in which you live The balance in your savings account Your monthly consumption on food items The number of carrots in your refrigerator at the beginning of the month 25 / 30 How many methods are there to measure Gross DomesticProduct? Three Four Five Six 26 / 30 The economic analysis most closely related to Say's Law is: Short-run aggregate market Production possibilities Imperfect competition Circular flow 27 / 30 The long run aggregate supply curve will shift to the right if: The price level increases. Factors of production (such as labor and capital) increase Expenditures (such as consumption and net exports) increase The prices of inputs used to produce goods and services (such as wages and the price of oil) decrease 28 / 30 Diminishing marginal returns implies: Decreasing marginal costs Increasing marginal costs Decreasing average variable costs Decreasing average fixed costs 29 / 30 In a free-market economy, the allocation of resources isdetermined by: Votes taken by consumers A central planning authority. Consumer preferences. The level of profits of firms. 30 / 30 According to thetheory of relativity: moving clocks run fast numerically energy is not conserved in high speed collisions none of the above are true Your score isThe average score is 46% 0% Restart quiz