# ECO402 Microeconomics Quiz 1 Fall 2013

ECO402  Microeconomics  Quiz No. 01  Fall 2013 will open on Nov 11, 2013 12:00 AM and due date of taking quiz is Nov 12, 2013 11:59 PM

There 20 Question in this quiz each of 1 marks, some of questions are here

The demand for books is: Qd = 120 – P The supply of books is: Qs = 5P Refer to the above scenario, if P=\$25, which of the following is true?

Select correct option:

Quantity supplied is greater than quantity demanded.

Quantity supplied is less than quantity demanded.

Quantity supplied equals quantity demanded.

None of the given options.

Which of the following is (are) example(s) of perfectly competitive markets?

Select correct option:

Wheat

Gold

The stock market

All of the given options.

Income elasticity of demand for an inferior good is always:

Select correct option:

Zero.

Positive.

Negative.

Positive but less than one.

Oscar consumes only two goods, X and Y. Assume that Oscar is not at a corner solution, but he is maximizing utility. Which of the following is NOT necessarily true?

Select correct option:

MRSxy = Px/Py.

MUx/MUy = Px/Py.

Px/Py = money income.

Px/Py = slope of the indifference curve at the optimal choice.

The magnitude of the slope of an indifference curve is:

Select correct option:

Called the marginal rate of substitution.

Equal to the ratio of the total utility of the goods.

Always equal to the ratio of the prices of the goods.

All of the given options.

When a consumer drinks one glass of water and then drinks another glass of water, his utility from second glass is less than the first glass. This is an example Law of:

Select correct option:

Equi-marginal utility.

Increasing marginal cost.

Increasing marginal utility.

Diminishing marginal utility.

Consumer equilibrium is attained at a point where slope of indifference curve is tangent to the slope of:

Select correct option:

Budget line.

Total Utility.

Supply curve.

Demand curve.

percentage change in quantity demanded for milk is same as the percentage change in price of milk then the price elasticity of demand for milk is:

Select correct option:

Elastic.

Inelastic.

Unitary elastic.

Perfectly elastic.

Income effect of a price change for inferior good is:

Select correct option:

Zero.

Infinite.

Negative.

Positive.

The demand for books is: Qd = 120 – P The supply of books is: Qs = 5P Refer to the above scenario, if P=\$15, which of the following is true?

Select correct option:

There is a surplus equal to 30.

There is a shortage equal to 30.

There is a surplus, but it is impossible to determine how large.

There is a shortage, but it is impossible to determine how large.