Question 1

The measurement of economic data:
A)mathematical
B)econometrics
C)business
D)statistics

Accepted Answer

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

Question 2

An identity between two alternative:
A)behavioral
B)definitional
C)conditional
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 :
A)supply
B)demand
C)elasticity
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:
A)negative
B)positive
C)no relation
D)none

Accepted Answer

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

Question 5

The relationship between the price of the commodity and quantity of the commodity supplied:
A)demand
B)equilibrium
C)supply
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:
A).4
B).6
C).8
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:
A)consumption
B)saving
C)investment
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:
A)cost
B)income
C)profit
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 =?
A)2
B)0
C)1
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:
A)saving
B)consumption
C)investment
D)none

Accepted Answer

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

Question 11

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

Accepted Answer

The first derivative of the consumption function represents the marginal propensity to consume, which measures the change in consumption resulting from a change in income.

Question 12

Revenue function TR = 22x²+14, find Marginal revenue?
A)44x
B)40x
C)22x
D)54x

Accepted Answer

Marginal revenue is found by taking the derivative of the total revenue function with respect to x. The derivative of TR = 22x² + 14 with respect to x is 44x.

Question 13

The addition to total cost:
A)mc
B)ac
C)tc
D)none

Accepted Answer

Marginal cost (mc) is the addition to total cost when one more unit of output is produced.

Question 14

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

Accepted Answer

Price elasticity measures the responsiveness of the quantity demanded of a good to a change in its price, which is exactly the proportionate change in quantity demanded relative to the proportionate change in price.

Question 15

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

Accepted Answer

MRSxy is the ratio of the marginal utility of good x to the marginal utility of good y. It is equal to the ratio of the price of good x to the price of good y, which is equal to the marginal rate of substitution (MRS) between the two goods.

Question 16

Marginal rate of technical substitution is equal to:
A)mux/muy
B)mpl/mpk
C)mrsxy/mrs
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:
A)price elasticity
B)income elasticity
C)cross elasticity
D)none

Accepted Answer

The ratio of the proportionate change in the quantity purchased of a good to the proportionate change in income is defined as income elasticity. It measures how the demand for a good changes as consumer income changes.

Question 18

An increase in income lead to the increase in quantity demanded of the good:
A)negative good
B)positive good
C)superior good
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:
A)engel function
B)consumption function
C)saving function
D)none

Accepted Answer

The Engel function describes the relationship between the quantity demanded of a good and the level of a consumer's income. It is used to analyze how consumer demand varies with changes in income, highlighting the importance of income elasticity in understanding consumer behavior.

Question 20

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

Accepted Answer

Cross elasticity of demand measures the responsiveness of the quantity demanded for a good to a change in the price of another good. It is used to identify the relationship between two products, categorizing them as substitutes or complements based on the sign of the cross elasticity value.

Quiz 1: Economics Terminologies and Concepts

The measurement of economic data:

An identity between two alternative:

The relationship between the price of the commodity and quantity of the commodity demanded :

The relation of Price and quantity demanded:

The relationship between the price of the commodity and quantity of the commodity supplied:

Consumption function is given C = 35 + .4 Yd , find MPC:

The relationship between income and consumption:

The difference between total revenue and the total Cost:

MPS + MPC =?

The difference between the present level of income and the past level of income:

The first derivative of the consumption function is:

Revenue function TR = 22x²+14, find Marginal revenue?

The addition to total cost:

The proportionate change in quantity demanded and the proportionate change in price is:

MRSxy is equal to:

Marginal rate of technical substitution is equal to:

The ratio of the proportionate change in the quantity purchased of a good to the proportionate change in income:

An increase in income lead to the increase in quantity demanded of the good:

The relationship between quantity demanded of a good and level of consumer's income:

The proportionate change in quantity demanded by a good due to proportionate change in the price of the other good: