Question 1

The measurement of economic data:&#10;A)mathematical&#10;B)econometrics&#10;C)business&#10;D)statistics

Accepted Answer

Econometrics is the application of mathematical and statistical methods to economic data.

Question 2

An identity between two alternative:&#10;A)behavioral&#10;B)definitional&#10;C)conditional&#10;D)none

Accepted Answer

A definitional identity refers to an equivalence or identity that is true by the very definition of the terms involved, rather than by their behavior or conditions under which they operate.

Question 3

The relationship between the price of the commodity and quantity of the commodity demanded :&#10;A)supply&#10;B)demand&#10;C)elasticity&#10;D)none

Accepted Answer

The relationship between the price of a commodity and the quantity of the commodity demanded is described by the concept of demand. Demand illustrates how the quantity demanded of a good or service changes in response to changes in its price, ceteris paribus.

Question 4

The relation of Price and quantity demanded:&#10;A)negative&#10;B)positive&#10;C)no relation&#10;D)none

Accepted Answer

The answer of The relation of Price and quantity demanded:&#10;A)negative&#10;B)positive&#10;C)no...

Question 5

The relationship between the price of the commodity and quantity of the commodity supplied:&#10;A)demand&#10;B)equilibrium&#10;C)supply&#10;D)none

Accepted Answer

The relationship between the price of a commodity and the quantity of the commodity supplied is described by the supply relationship or supply curve. This relationship typically shows that as the price of a commodity increases, suppliers are willing to produce more of it.

Question 6

Consumption function is given C = 35 + .4 Yd , find MPC:&#10;A).4&#10;B).6&#10;C).8&#10;D).7

Accepted Answer

The Marginal Propensity to Consume (MPC) is the change in consumption for a change in disposable income, represented by the coefficient of Yd in the consumption function, which is .4 in the given equation C = 35 + .4Yd.

Question 7

The relationship between income and consumption:&#10;A)consumption&#10;B)saving&#10;C)investment&#10;D)none

Accepted Answer

Consumption is directly related to income, as it typically increases when income increases.

Question 8

The difference between total revenue and the total Cost:&#10;A)cost&#10;B)income&#10;C)profit&#10;D)revenue

Accepted Answer

The difference between total revenue and total cost is defined as profit. This is because profit is the amount of money a business makes after paying off all its expenses.

Question 9

MPS + MPC =?&#10;A)2&#10;B)0&#10;C)1&#10;D)3

Accepted Answer

The Marginal Propensity to Save (MPS) and the Marginal Propensity to Consume (MPC) add up to 1 because every additional unit of income is either saved or spent.

Question 10

The difference between the present level of income and the past level of income:&#10;A)saving&#10;B)consumption&#10;C)investment&#10;D)none

Accepted Answer

The answer of The difference between the present level of...

Question 11

The first derivative of the consumption function is:&#10;A)marginal revenue&#10;B)marginal cost&#10;C)marginal propensity to consume&#10;D)none

Accepted Answer

The answer of The first derivative of the consumption function...

Question 12

Revenue function TR = 22x&#178;+14, find Marginal revenue?&#10;A)44x&#10;B)40x&#10;C)22x&#10;D)54x

Accepted Answer

The answer of Revenue function TR = 22x&#178;+14, find Marginal...

Question 13

The addition to total cost:&#10;A)mc&#10;B)ac&#10;C)tc&#10;D)none

Accepted Answer

The answer of The addition to total cost:&#10;A)mc&#10;B)ac&#10;C)tc&#10;D)none...

Question 14

The proportionate change in quantity demanded and the proportionate change in price is:&#10;A)price elasticity&#10;B)income elasticity&#10;C)cross elasticity&#10;D)none

Accepted Answer

The answer of The proportionate change in quantity demanded and...

Question 15

MRSxy is equal to:&#10;A)mux/muy&#10;B)mpx/mpy&#10;C)mrts&#10;D)none

Accepted Answer

The answer of MRSxy is equal to:&#10;A)mux/muy&#10;B)mpx/mpy&#10;C)mrts&#10;D)none...

Question 16

Marginal rate of technical substitution is equal to:&#10;A)mux/muy&#10;B)mpl/mpk&#10;C)mrsxy/mrs&#10;D)mrx/mry

Accepted Answer

The answer of Marginal rate of technical substitution is equal...

Question 17

The ratio of the proportionate change in the quantity purchased of a good to the proportionate change in income:&#10;A)price elasticity&#10;B)income elasticity&#10;C)cross elasticity&#10;D)none

Accepted Answer

The answer of The ratio of the proportionate change in...

Question 18

An increase in income lead to the increase in quantity demanded of the good:&#10;A)negative good&#10;B)positive good&#10;C)superior good&#10;D)normal good

Accepted Answer

The answer of An increase in income lead to the...

Question 19

The relationship between quantity demanded of a good and level of consumer's income:&#10;A)engel function&#10;B)consumption function&#10;C)saving function&#10;D)none

Accepted Answer

The answer of The relationship between quantity demanded of a...

Question 20

The proportionate change in quantity demanded by a good due to proportionate change in the price of the other good:&#10;A)price elasticity&#10;B)income elasticity&#10;C)cross elasticity&#10;D)demand elasticity

Accepted Answer

The answer of The proportionate change in quantity demanded by...

Question 21

Given the utility function U = 5x&#178;+12x, find Marginal utility:&#10;A)5+12&#10;B)10x+12&#10;C)12x 10&#10;D)10x +12x

Accepted Answer

The answer of Given the utility function U = 5x&#178;+12x,...

Question 22

The first order derivative of Total Utility:&#10;A)mu&#10;B)tu&#10;C)au&#10;D)none

Accepted Answer

The answer of The first order derivative of Total Utility:&#10;A)mu&#10;B)tu&#10;C)au&#10;D)none...

Deck 1: Economics Terminologies and Concepts