FINALTERMEXAMINATION-Ning.docVIP

FINALTERM??EXAMINATION Fall 2009 ECO401- Economics (Session - 2) Time: 120 min Marks: 87 ???? Question No: 1????( Marks: 1 )????- Please choose one ?If pen and ink are complements, then an increase in the price of pen will cause: ? ???????? An increase in the price of ink. ???????? Less ink to be demanded at each price. ???????? A decrease in the demand for pen. ???????? A rightward shift in the demand curve for ink. ??? Question No: 2????( Marks: 1 )????- Please choose one ?A market is said to be in equilibrium when: ???????? Demand equals output. ???????? There is downward pressure on price. ???????? The amount consumers wish to buy at the current price equals the amount producers wish to sell at that price. ???????? All buyers are able to find sellers willing to sell to them at the current price. ??? Question No: 3????( Marks: 1 )????- Please choose one ??As more of a good is consumed, then total utility typically: ???????? Increases at a decreasing rate. ???????? Decreases as long as marginal utility is negative. ???????? Decreases as long as marginal utility is positive. ???????? Is negative as long as marginal utility is decreasing. ??? Question No: 4????( Marks: 1 )????- Please choose one ?A monopolistically competitive firm in short run equilibrium: ? ???????? Will make negative profit (lose money). ???????? Will make zero profit (break-even). ???????? Will make positive profit. ???????? Any of the given are possible. ??? Question No: 5????( Marks: 1 )????- Please choose one ?A monopolistically competitive firm in the long run equilibrium: ? ???????? Will make negative profit. ???????? Will make zero profit. ???????? Will make positive profit. ???????? Any of the given are possible. ??? Question No: 6????( Marks: 1 )????- Please choose one ?The market structure in which strategic considerations are most important is: ? ???????? Monopolistic competition. ???????? Oligopoly. ???????? Pure competition. ???????? Pure monopoly. ??? Question No: 7????( Marks: