Financial Markets Test with Multiple Choice Questions Essay

Class Test 1 (Sample Items)Choose the most manufacture response. Record your answer on the mark sense sheet provided. to to each one one answer is worth mark. gesture 1All else equal, a rear price floor give cause less of a profusion if(a)both supply and study be in pliant(b)both supply and demand ar elastic(c)supply is elastic, but demand is inelastic(d)supply is inelastic, but demand is elastic top dog 2The figure shows the market for books before and after an strike taxation enhancement is introduced. The tax on books is ________, buyers pay ______ of tax per book, and the governments tax tax is ________ a week.(a) $0.40 a book $0.40 $4(b) $1.20 a book $0.80 $128(c) $0.80 a book $1.20 $12(d) $1.20 a book $0.80 $12 challenge 3If the minimum wage is influence below the equilibrium wage direct,(a) a labour shortage occurs.(b) there is no change in the sum of money of labour employed.(c) the short-run labour supply curve becomes more(prenominal) elastic.(d) a labour surplus occurs. header 4If dulcify is measured on the vertical axis, and halt on the horizontal axis, the fringy range of reversal(a) is the drift at which the consumer has to give up honey if more jam is to be bought, assumption their relative prices. (b) is the rate at which the consumer has to give up jam if more honey is to be bought, given their relative prices. (c) is the rate at which the consumer is willing to give up honey in govern to get more jam, and be as satisfied as he or she was before. (d) is the rate at which the consumer is willing to give up honey in order to get more jam and be interrupt off than he or she was before.QUESTION 5At the beat out affordable aspire(a) the budget line intersects an indifference curve.(b) the borderline rate electric switch of x for y is exactly equal to 1. (c) the borderline rate of substitution of x for y is equal to the relative price of x in terms of y (that is, ) (d) the difference between the peripheral rate of su bstitution of x for y and the relative price of x is at a maximum.QUESTION 6Stuart, who loves seafood, says, I cant rightfully tell the difference between Sydney stir oysters and Pacific oysters. They taste equally delicious to me I just buy a dozen of whichever is cheaper both week. In terms of peripheral receipts theory, Stuart thinks(a) the marginal inferior per clam spent on Sydney rock oysters is equal to the marginal good per horse spent on Pacific oysters. (b) the marginal utility he gets from Sydney rock oysters is greater than that from Pacific oysters, but Pacific oysters are cheaper. (c) the marginal utility he gets from Pacific oysters is greater than that from Sydney rock oysters, butSydney rock oysters are cheaper. (d) the marginal utility he gets from Sydney rock oysters is equal to that from Pacific oysters, and so whichever oyster has a lower price gives him a higher marginal utility per dollar spent.QUESTION 7According to the marginal utility theory of co nsumer choice, balancenal consumers will spend their money with the aim of(a) maximize the entireness utility they get from their limited income. (b) maximising the marginal utility they get from each good. (c) equalizing the marginal utility they get from different goods. (d) maximizing the amount they save out of their limited income.QUESTION 8A familys production function refers to(a) the maximum quantity of fruit that it can adopt within a given period. (b) the maximum taxation it can earn from various levels of outturn. (c) the maximum output that can be produced from various quantities of inputs. (d) the minimum damage of producing various levels of output.QUESTION 9When marginal cost is rising, amount total cost(a) will necessarily be rising.(b) will necessarily be falling.(c) may be rising or falling, depending on whether marginal cost is greater or less than modal(a) total cost.(d) may be rising or falling, depending on whether marginal cost is greater or less t han average variable cost.QUESTION 10Which of the following reflects the law of diminishing marginal rate of substitution? As we continually affix labour one unit at a time,(a) the supplement to output will become big, if large(p) is held constant. (b) the addition to output will become smaller, if capital is held constant. (c) larger reductions in capital will be required to keep output constant. (d) smaller reductions in capital will be required to keep output constant. (e) larger increases in labour will be required to keep output constant.QUESTION 11The least cost technique of producing a given output occurs where the marginal rate of substitution of labour for capital equals the(a) proportionality of the quantity of labour used relative to the quantity of capital used.(b) ratio of the price of labour to the price of capital.(c) minimum point on the isoquant line.(d) marginal cost of capital(e) ratio of the marginal cost of capital to the marginal cost of labour.QUESTION 12 A perfectly competitive firms supply curve is the upward-sloping part of its(a) average product curve, at all points supra the point of minimum average variable cost. (b) marginal cost curve, at all points in a higher place the point of minimum average fixed cost. (c) marginal revenue curve, at all points above the point of minimum average revenue. (d) marginal revenue curve, at all points above the point of minimum average total cost. (e) marginal cost curve, at all points above the point of minimum average variable cost.QUESTION 13For the monopolist facing a downward sloping demand, the marginal revenuenever exceeds the price because(a) the producers of substitutes keep the price low.(b) the monopolist must lower the price in order to sell more during whatever given period of time. (c) the monopoly will be a large partnership with high fixed costs. (d) the monopoly must accept the marginal revenue set by the market as a whole. (e) the monopoly has low marginal cost relative to a competitive firm.QUESTION 14The table gives the demand order of business for water bottled by Wandas Healthy Waters, a single-price monopoly. If the marginal cost is a constant $4 a bottle, Wandas will produce _______ a day and charge ____ a bottle.(a) 3 bottles $7(b) 4 bottles $6(c) 5 bottles $5(d) 1 bottle $9QUESTION 15The table below gives the demand and supply schedule for biscuits. The government now levies a $3 tax on biscuit. As a result, the price of a packet of biscuits will increase to ____ and the tax revenue collected is ____.(a) $12 $160 a week(b) $12 $300 a week(c) $13 $160 a week(d) $13 $240 a weekPrice($ per packet)Quantity demanded (packets / week)Quantity supplied(packets / week)QUESTION 16Excess capacity in monopolistically competitive firms is described by the fact that(a) each firm faces a demand that is perfectly elastic.(b) each firms builds a huge plant.(c) the existence of slightly differentiated products serving to the highest degree the same purpose c auses a waste of precious natural resources.(d) firms produce at an output that is less than the output associated with their minimum average total cost.(e) marginal cost is too high.QUESTION 17When the economic wage is negative in an manufacturing that is monopolistically competitive, then(a) firms will enter the industry and produce better products. (b) firms will exit the industry, and the demand will increase for the products of the firms that remain. (c) firms will exit the industry, and the demand will decrease for those firms that remain in the industry. (d) firms will enter the industry and the demand will become more elastic for those firms that were originally in the industry. (e) the industry will eventually disappear.QUESTION 18If the electricity commission in Queensland practises perfect price dissimilarity(a) its marginal cost curve and its demand curve are identical.(b) its marginal revenue curve and its demand curve are identical. (c) its marginal revenue curve li es below its demand curve.(d) its marginal revenue curve lies above its demand curve.(e) none of the above.