Quiz for ut iii pps
- 1. Shaju George Quiz for the Unit Test III
- 2. Shaju George 1. The wages of carpenters will tend to rise if a. The supply of carpenters falls b. Their productivity rises c. The price of wooden products falls d. Demand for plastic products rises
- 3. Shaju George 2. The best explanation for the rise in demand for labour from Dn to DN1 is: 1. A fall in wages Wage rate 2. A fall in the price of the product they produce 3. An increase in unemployment 4. Increasing productivity of labour DN1 DN Quantity of labnour employed
- 4. Shaju George 3. Disposbale in come is a. Gross income before tax b. Personal income c. Taxable income d. Personal income after taxes on income are deducted.
- 5. Shaju George 4. Which of the following is most likely to lead to a fall in the savings ratio? a. An increase in taxes b. A cut in interest rate c. A cut in borrowing d. A fall in people’s propensity to consume
- 6. 5. The supplycurve on the left Shaju shows that George a. Wages fall as the amount of Sn labour increases b. A rise in wages reduces the size of the working population c. After a certain level of wages labour chooses more leisure than work d. Supply rises as wages fall Quantity of labour employed per period
- 7. Shaju George 6. The supply of labour to an occupation will tend to rise when: a. Promotion prospects improve b. There are fewer perks c. Holiday entitlement is cut d. Unemployment benefit rises
- 8. Shaju George 7. Which one of the following is the least likely explanation for the observed increase in consumer spending on leisure goods and services over time in many countries? 1. Increasing real disposable income per head. 2. Consumers want healthier lifestyles 3. Increasing levels of personal debt 4. Increased Wealth
- 9. Shaju George 8. Which one of the following types of household is most likely to spend the highest proportion of its disposable income? a. High income, middle aged with no children b. Low income, young single parent with young children. c. Middle income, young children person, no children. d. High income, middle-aged couple with two grown-up children.
- 10. Shaju George 9. Which of the following is a non-economic reason why women may earn less than male employees? A. They may be discriminated against. B. They undertake more part-time work C. Married women may be less mobile than men D. They take more career breaks to raise children
- 11. Shaju George 10. What has happened in the diagram to the equilibrium wage and employment? Wage Rate a. Wages and employment have Sn1 Dn risen Sn b. Wages and employment have fallen c. Wages have risen; employment has fallen d. Wages have fallen; employment has risen. Quantity of labour per period
- 12. Shaju 11. Personal borrowing has increased in many George countries. Which on of the following factors is the most likely explanation? A. Higher real interest rates. B. Reduced personal wealth. C. Increased availability of credit D. Increased public sector borrowing
- 13. Shaju George 12. The savings ratio in an economy measures; A. Deposits in banks as proportion of total savings. B. Total savings as proportion of gross household income C. Long-term savings relative to total savings. D. Total savings as proportion of total disposable income
- 14. Shaju George 13. Disposable income will tend to rise if: a. Indirect taxes are reduced b. Interest rates are cut c. Price inflation falls d. Direct taxes are reduced
- 15. Shaju 14. Which of the following changes is George most likely to attract an increase in the supply of labour to engineering professions? a. An increase in training requirements b. An increase in holiday entitlements c. An increase in contracted hours of work d. A cut in income taxes
- 16. Shaju George 15. Which one of the following can be defined as a secondary industry? A. Insurance services B. Coal mining C. Paper making D. Banking
- 17. Shaju George 16. Which one fo the following reasons will not help explain why small firms exist and survive? a. Lack of finance b. Consumers lime personalized service c. Government financial help d. Low start-up costs
- 18. Shaju George 17. Which of the following is unlikely to raise productivity in a firm? a. Training workers in new skills b. Performance related pay c. Investing in new equipment d. Reducing overtime working
- 19. Shaju George 18. A firm employs 25 full-time employees. They produce 500 tee-shirts each week. What is their average labour productivity? a. 25 b. 500 c. 20 d. 12500
- 20. Shaju George 19. Which of the following reasons can explain why a firm may substitute capital for labour in production? a. Wage fall b. The cost of borrowing rises c. Consumer demand rises d. The productivity of labour falls
- 21. Shaju George 20. Which of the following mergers between two firms is an example of vertical integration? a. A bank and an insurance company b. A car rental firm and a car maker c. A tin mine and a coal mine d. A restaurant and a hot food take- away
- 22. Shaju George Output per Total cost Total week ($) Revenue ($) A 1000 10000 13000 B 2000 16000 30000 C 3000 18000 42000 D 4000 28000 56000 21.At what level of output is average cost at a minimum? 22.At what level of output is average at a maximum? 23. At what level of output is profit maximized
- 23. Shaju George 24. Which of the following is a variable cost of production? A. Purchase of component parts. B. Insurance premiums C. Loan repayments D. Computer repair costs
- 24. Shaju George 25. A firm A firm expands its scale of production by investing in additional factory space and machinery. What is the most likely impact of this decision on costs? A. Variable costs will fall Fixed costs will rise Total costs will be unchanged Average costs will rise.
- 25. Shaju George 26. On the graph, what level of output represents the beak-even point of production? Total Revenue Total Costs ($) Revenue Variable Cost Fixed Cost A B C D Output Per Period
- 26. Shaju 27. Average cost of producing 200 George compact discs is: Total output of Total Costs compact discs 0 $ 100 100 $ 800 200 $ 1500 300 $ 2200 400 $ 2900 500 $ 3600 600 $ 4300 A. $7 B. $70 C. $7.5 D. $1500
- 27. Shaju George 28. The fixed cost of productin are Total output of Total Costs compact discs 0 $ 100 100 $ 800 200 $ 1500 300 $ 2200 400 $ 2900 500 $ 3600 600 $ 4300 A. $1 B. $10 C. $100 D. $800
- 28. Shaju George 29. The variable cost of producing a compact disc is; Total output of Total Costs compact discs 0 $ 100 100 $ 800 200 $ 1500 300 $ 2200 400 $ 2900 500 $ 3600 600 $ 4300 A. $ 7 B. $8 C. $ 7.5 D. $ 7.20
- 29. Shaju George 30. If the company produces 500 compact discs and wanted to make a $ 1400 profit from their sale, the price of each disc must be; Total output of Total Costs compact discs 0 $ 100 100 $ 800 200 $ 1500 300 $ 2200 400 $ 2900 500 $ 3600 600 $ 4300 A. $5 B. $10 C. $2.8 D. $7.20
- 30. Shaju 31. If a firm doubles all its factor inputs of George land, labour and capital, and output more than doubles, we can say the firm has experienced. A. Constant returns to scale B. Diminishing returns to scale C. Decreasing Returns to scale D. Increasing Returns to scale
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