ECO401 Solved MCQ from Quiz #3
chapters 1-24
Fahad Gulzar <fahad.gulzar@gmail.com>
http://groups.google.com/group/vuZs
 |
| http://groups.google.com/group/vuZs |
| Visit this group |
Which of the following can be thought of as a barrier to entry?
Scale economies.
Patents.
Strategic actions by incumbent firms.
All of the given options are true.
A new technology which reduces costs for firms':
Shifts the supply curve to the right
Shifts the supply curve to the left
Reduces the equilibrium quantity
Raises the equilibrium price
The point at which AC intersects MC is where:
AC is decreasing.
MC is at its minimum.
AC is at its minimum.
AC is at its maximum.
A normative economic statement:
Is a statement of fact
Is a hypothesis used to test economic theory.
Is a statement of what ought to be, not what is.
Is a statement of what will occur if certain assumptions are true.
If the income elasticity of demand is 1/2, the good is:
A luxury
A normal good (but not a luxury).
An inferior good.
A Giffen good.
And another question that derives from above is
If the income elasticity of demand is 2, the good is:
A luxury
A normal good(but not a luxury)
An inferior good.
A Giffen good.
Which of the following can be thought of as a barrier to entry?
Scale economies.
Patents.
Strategic actions by incumbent firms.
All of the given options are true.
A new technology which reduces costs for firms':
Shifts the supply curve to the right
Shifts the supply curve to the left
Reduces the equilibrium quantity
Raises the equilibrium price
