eco401 mid term solve quiz april 2011

**Vuhelper** · 04-20-2011, 10:31 PM

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Question # 1 of 15 ( Start time: 09:09:15 AM )
The production possibilities curve:
Select correct option:
Shows all combinations of goods that society most desires.
Indicates that any combination of goods lying outside the curve is attainable.
Shows the maximum level of output that an economy can produce with all the available
resources.
Shows only those combinations of two goods that reflect "full production".
Question # 2 of 15 ( Start time: 09:10:19 AM )
If the supply of a product decreases and supply curve shifts leftward, and the demand for
that product simultaneously increases and demand curve shifts rightward, then
equilibrium:
Select correct option:
Price must rise.
Price must fall.
Quantity must rise.
Question # 3 of 15 ( Start time: 09:11:45 AM )
Income elasticity of demand for the normal goods is usually
Positive.
Question # 4 of 15 ( Start time: 09:12:43 AM )
When oligopolists collude, they are able to:
Select correct option:
Raise price, but not restrict output
Raise price and restrict output, but not attain the monopoly profit
Raise price and restrict output, and therefore attain the monopoly profit
Restrict output, but not raise price
Question # 5 of 15 ( Start time: 09:13:09 AM )
Consider two commodities X and Y. If the cross-elasticity of demand is positive, it means
the goods are:
Select correct option:
Independent.
Complements.