Week 1 Quiz

Question 1
1 / 1 pts
Identify the wrong one: Economic Sciences generally discusses issues mainly
related to: 
  
Scarce Resources
 
Correct!
  
Money
 
  
Choices
 
  
Unlimited Demand
 
 
Question 2
1 / 1 pts
Meeting a given objective at least cost is
Correct!
  
Technical Efficiency
 
  
All of the above
 
  
Allocative Efficiency
 
  
Efficiency
 
 
Question 3
1 / 1 pts
Which one of the following is wrong about market economics?
 
Competition among economic units determine Prices
Correct!
  
State controls the resources
 
  
Economic players look at their self-interest
 
  
None of the above
 
 
Question 4
1 / 1 pts
Production Possibility Frontier shows increase in opportunity costs with rise
in production of one good.
Correct!
  
True
 
  
False
 

Week 2 Quiz

1. An example of Utility in healthcare economics is

Level of satisfaction with a hospital service

Medicines at lower price

Free health insurance schemes

All of the above

2. Consumer equilibrium is
Correct!
 
When budget line is tangent to the indifference curve
 
When demand and supply curves intersect each other
 
When consumer shifts to a higher indifference curve because of decline in price
  
None of the above
 
 

Question 3
1 / 1 pts
Marginal rate of substitution for complimentary goods is
  
Constant
 
Correct!
Zero
 
  
Equals to 1
 
  
None of the above
 
 
Question 4
0 / 1 pts
Which one of the following statements is incorrect?
You Answered
  
Utility can be measured in Ordinal numbers.
 
  
Indifference curves are convex to the origin.
 
 
The rate at which a consumer is ready to give up one good in exchange for another
decreases with rising consumption.
  
Higher indifference curve higher satisfaction.
 
Correct Answer
  
None of the above.
 

Week 3 Quiz

Question 1
1 / 1 pts
The substitution effect involves the substitution of good X for good Y or vice-
versa due to a change in 
  
Price of X
 
  
Price of Y
 
  
Relative income
 
Correct!
Relative prices
 
 
Question 2
1 / 1 pts
The difference between Marshallian and Hicksian demand curve is that the
later considers utility to remain fixed.
  
False
 
Correct!
True
 

Question 3
1 / 1 pts
In Slutsky method, substitution effect is more than the income effect for
  
Giffen goods
 
  
Normal goods
 
!
Inferior but Non-Giffen goods
 
  
All of the above
 
 
Question 4
1 / 1 pts
According to Slutsky, consumer’s utility is adjusted so that he/she can buy the
same original bundle
  
True
 
Correct!  
False
 

Week 4 Quiz
Question 1

When price of a good rises demand for its substitute goo

Increases

Decreases

Does not change

Question 2

Market equilibrium is

When consumer shifts to a higher indifference curve because of decline in price

When budget line is tangent to the indifference curve

None of the above

When demand and supply curves intersect each other

Question 3

The reason the supply curve slopes upward is due to costs and

True

False

Question 4

When demand of a commodity rises even if its price increase then that kind of
commodity is known as

Complementary goods

Substitute commodities
Giffen good

None of the above

Week 5 quiz

Question 1
1 / 1 pts
Price elasticity (e) of demand for substitute goods is
  
e<0
  
e=0
  
e=0
  
e>0
 
 
Question 2
1 / 1 pts
When demand is elastic, a positive relationship exists between changes in
price and changes in total revenues
  
False
 
  
True
 
 
Question 3
1 / 1 pts
The longer any price change persists, the greater is the elasticity of demand.
  
False
 
  
True
 
 
Question 4
0 / 1 pts
If income increases from Rs. 7500 to Rs. 10000 and because of that the
demand also rises from 10 to 12 units then this is an example of 
  
Income inelasticity of demand

  
Income elasticity of demand

  
Price elasticity of demand
 
  
Income inelasticity of price
 
Week 6 quiz

Question 1
1 / 1 pts
When Marginal productivity reaches zero (find the wrong one)
  
Both A and B
 
  
Average product decreases
 
  
Total product is zero
 
  
Total product reaches maximum
 
 
Question 2
1 / 1 pts
Marginal Productivity of labor is the amount of output that rises due to
recruitment of one extra unit of labor.
  
False
 
  
True
 
 
Question 3
1 / 1 pts
In short run, only one input for productions can be changed.
  
True
 
  
False
 
 
Question 4
0 / 1 pts
Which of the following statement is incorrect? 
 
Marginal productivity declines because of the fall in quality of input.
  
None of the above.
 
 
Law of diminishing marginal returns signifies decline in MP.
 
When the labor input is small, MP increases due to specialization
Week 7 Quiz
Question 1
1 / 1 pts
Isoquants for perfectly complementary factors of production are
  
Convex to the origin
 
  
Downward sloping straight lines
 
  
L-shaped
 
  
Concave to the origin
 
 
Question 2
1 / 1 pts
Which helps you to identify the equilibrium number of inputs
  
Iso-cost
 
  
Isoquant
 
  
Total product curve and Marginal product curve
 
  
Both isoquant and iso-cost
 
 
Question 3
1 / 1 pts
During increasing returns to scale, the distance between isoquants increase
  
False
 
  
True
 

Question 4
1 / 1 pts
In case of Cobb-Douglas production function, for decreasing returns to scale,
(α+β) > 1

False
 
  
True
 

Week 8 Quiz

Question 1
1 / 1 pts
Example of marginal cost is
  
All of the above
 
 
Rise in operational costs in hospital for ten extra patient beds
 
Rise in cost for construction of one extra kilometer of road
  
Additional cost for driving one extra kilometer
 
 
Question 2
1 / 1 pts
In theory of cost an ‘envelope curve’ is
  
Long run total cost curve
 
  
Long run average cost curve
 
  
Long run marginal cost curve
 
  
Group of short run average cost curves
 
 
Question 3
1 / 1 pts
MC intersects ATC and AVC curves at their minimum points
  
True
 
  
False
 
 
Question 4
1 / 1 pts
Break-even point is when…
  
Loss is maximum
 
  
Total loss starts falling down
 
  
Profit is maximum
 
  
Total profit is zero
Week 9 Quiz

Question 1
1 / 1 pts
Firms in imperfect markets are price takers
  
True
 
Correct!
  
False
 
 
Question 2
1 / 1 pts
When does a firm reach a shutdown point?
  
When MR = AR
 
  
If MR = MC
 
  
When the price is less than Marginal Cost
 
Correct!
 
If the price falls below the point on the firm’s average variable cost
 
Question 3
1 / 1 pts
In a perfectly competitive market (which one is false)
 
A good or service is produced at the lowest possible average cost.
  
Sellers are earning a normal profit
 
!
A large firm may utilize the profit and move towards monopoly.
  
Losses will force firms to exit the market
 
 
Question 4
1 / 1 pts
Which one of the following is not a condition of a perfectly competitive market?
Correct!
  
Barriers to new firms entering the market,
 
 
All firms selling identical products (for the same price),
  
Many buyers and sellers,
 
  
Free flow of information
 

Week10 Quiz
Question 1
1 / 1 pts
Which of the following is not a characteristics of a monopolistically
competitive market?
 
Low barrier on entry and exit of firms to the industry
  
Products are close substitutes
 
  
Large number of buyers and sellers
 
Correct!
Firms are interdependent
 
 
Question 2
1 / 1 pts
Which of the following statements is/are correct?
(A) Oligopoly firms follow the principle of MR = MC.
(B) Demand will be more elastic in a pure oligopoly market.
!
 Only B is correct
 
  
Both A and B are false
 
  
Both A and B are correct
 
  
Only A is correct
 

Question 3
1 / 1 pts
Fair Return Price is when
Correct!
Price equals ATC
 
  
MR equals ATC
 
  
Price equals MC
 
  
MR equals MC
 

Question 4
1 / 1 pts
Which one of the following statement is false?
  
Cartel is formed in collusive oligopoly
 
 
Firms prefer non-price competition, because a firm will be skeptical to raise price,
as that may lead them to lose the market share

In Stackelberg duopoly model two firms take decisions simultaneously

 
If Lerner’s index value is zero for a firm, then the firm is in a perfectly competitive
market

Week 11 Quiz
Question 1
1 / 1 pts
If no one can be excluded from consuming a product, but there is rivalry in
accessing the product, then the product type is known as
  
a) Public good
 
  
b) Natural monopoly
 
Correct!
c) Common resources
 

d) Private good
 
 
Question 2
1 / 1 pts
An industry which does not treat its pollutants properly can cause
  
a) Positive production externality
 
Correct!
b) Negative production externality
 
  
c) Negative consumption externality
 
  
d) Both b and c
 

Question 3
1 / 1 pts
The 'tragedy of the commons' is

a) Exhaustion of resources that are collectively owned

 
b) When there is no excludability but there is a rivalry in consumption
 
c) Enjoying something at the cost of others’ expenditures
Correct!
d) a and b
 
  
e) All of the above
 

Question 4
1 / 1 pts
Coase theorem is generally not applicable when
  
a) Lesser number of stakeholders involved
 
  
b) Transaction cost is internally manageable
 
  
c) Property rights are well-defined
 
Correct!
d) None of the above
 

Week 12 Quiz
Question 1

Which of the following statements is/are correct?

A) Keynes theory advocated for government actions to raise employment

B) Classical model of macroeconomics proposes government intervention in

case of market crisis

Both A and B are correct

Both A and B are incorrect

Only B is correct

Only A is correct

Question 2

Which of the following comments is incorrect

GDP estimation only considers final goods and service

Income of a German citizen who is working and earning in India,

will be added in Germany's GNP

GDP minus depreciation equals NDP

Income of an Indian who is working and earning in USA, will be

added in GDP of India

Question 3

Which one of the following statements is false?

Sudden transition to an improved technology should not be encouraged as it can

bring depression to a number of industries
More money is injected in the economy when the economy is at its peak

At peak, even high market prices fail to cover high cost of production for
producers

During recovery period demand rises due to very low price

Question 4

Which one of the following is correct?

Real GDP is the value of goods and services measured at current prices.

Private savings do not include investment in domestic capital

Disposable income is the total income that is available to the households and
firms to make its consumptions and savings after
paying the net taxes to the government.

Current account surplus is a condition when its government

income exceed its expenditure.

Week 13 Quiz

Question 1
1 / 1 pts
With more and more involvement of robotics, even if most people have jobs but
they are required to work for 5 hours a day and 5 days a week. What is this kind of
unemployment?
Correct!
Underemployment
 
  
This is not an unemployment condition
 
  
Structural unemployment
 
  
Disguised unemployment
 

Question 2
1 / 1 pts
A. In case of supply chain disruption we observe a cost-push inflation
B. If unemployment rises inflation falls, and vice-versa
Correct!
  
Both A and B are correct
 
  
Only A is correct
 
  
Only B is correct
 
  
Both A and B are incorrect
 
 
Question 3
0 / 1 pts
A. When Gini coefficient moves closer to zero it indicates towards decrease
inequality
B. Globalization is alleged to make rich people richer and poor people poorer,
in many countries. In these countries Lorenz Curve will move towards the
diagonal.
You Answered
Both A and B are correct
 
  
Only A is correct
 
Correct Answer
  
Both A and B are incorrect
 
  
Only B is correct
 

Question 4
1 / 1 pts
Which one of the following statements is incorrect?
 
In an economy, higher is the inequality, higher will be the relative poverty.
Correct!
In Multidimensional Poverty Index, drinking water availability measures the
‘Health Status’ component of an economy.
 
The average deviation of poor people’s income from the poverty line is measured
by Poverty Gap.
Correct
While measuring poverty with respect to Absolute Poverty Line, with
homogeneous rise in income still the proportion of poor remain same

Week 14 Quiz
Question 1
1 / 1 pts
The optimal capital stock is achieved when,

The marginal productivity of capital is equal to the marginal efficiency of capital

  
Replacement investment is zero
 
  
The marginal cost of capital is minimum
 
Correct!
The marginal productivity of capital is equal to the marginal cost of capital

Question 2
1 / 1 pts
Which one of the following statements is incorrect?
 
Freedom to make choices is a measure of development
Correct!
Economic development can be sufficiently measured in terms of country’s
national income or per capita income
  
None of them is incorrect
 
 
Measures of economic growth does not consider economic distribution

Question 3
1 / 1 pts
Dual sector economy model was propounded by
  
Harrod-Domar Model
 
Correct!
Lewis Model
 
  
Solow-Swan Model
 
  
Keynesian Theory
 

Question 4
1 / 1 pts
Which consumption theory considers interest rate when estimating income
  
Permanent income hypothesis
 
Correct!
Life cycle theory of consumption
 
  
Acceleration Theory
 
  
Absolute income hypothesis
 

Week 15 Quiz

Question 1

Regulation of NBFls is a goal of

Monetary policy

Fiscal Policy

Both

None

Question 2

The rate at which RBI lends to commercial banks for short period against
government securities is known as

Cash Reserve Ratio

Repo rate

Reverse Repo Rate

Bank Rate

Question 3

A. Contractionary fiscal policy attempts to slowdown inflation

B. Liquidity trap happens when interest rate is too high

Only A is correct

Only B is correct
Both A and B are correct

Both A and B are incorrect

Question 4

Time deposits with the banking system is included in M3 and M4

True

False

Week 16 Quiz

Question 1.

A. Currency appreciation makes export cheaper for home country

B. According to Marshall-Lerner condition, when price elasticity of demand is

less than one, devaluation helps economic growth.

Only B is correct

Only A is correct

Both A & B are incorrect

Both A & B are correct

Question 2.

If there is an expected rise in Rupees interest rate (against US Dollar), the

exchange rate will

Will remain unchanged

Rise in favor of Rupees

Rise in favor of US dollar

Question 3.

Which one of the following is not included in the Capital Account estimate?

SDR from IMF

Migrants' transfers

Debt forgiveness

Acquisition of land

Question 4.

A. In general, trade barriers reduce economic welfare in a country.

B. Trade happens because of differences in resource availability in two

countries

Only B is correct
Both A and B are correct
Only A is correct
Both A and B are incorrect