Mcq Question From Previous Sem

Please choose from one (1) of the scenarios below. Note: The scenario that you choose in this assignment will be the one (1) with which you continue for Assignment 2.

“The Cross-price elasticity of demand measures the rate of response of quantity demanded of one good, due to a price change of another good” (Economics.about.com,

Type the letter that represents the best answer to each of the multiple choice questions. Answer all questions in this section. Each question is worth 1 point.

2. This is a closed-book test. You are not allowed to refer to any text material for the

Answers: 1. a 2. b 3. a 4. d 5. c 6. c 7. b 8. a 9. c 10. d 11. b 12. d 13. a 14. d 15. b 16. b 17. b 18. c 19. c 20. a 21. c 22. a 23. a 24. b 25. b 26. d

MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.

Price elasticity of demand enables business organizations to predict how their total revenue will be effected in the event they change the prices of their products. When a given good has inelastic price elasticity of demand i.e. Ed 1, then the percentage change in the quantity demanded is greater that the change in price. Thus, raising the prices of such commodities results to decline in the total revenue because the business may loss customers to their competitors. Nonetheless, reducing the prices of goods with elastic elasticity of demand increases the total

TEST I. MULTIPLE CHOICE. Read each statement carefully. Write the letter of the best answer for each item on the space provided before the number.

Under Elasticity of Demand there are two more types that I have not spoken about, one being the Income elasticity of Demand (measures how much the quantity demanded changes as consumer income changes) and the other being Cross Price Elasticity of Demand (measures how the quantity demanded of one good changes as the price of another good changes). I could say that cross price elasticity of demand holds relevance because when consumers are not given a particular good

* A product is elastic if a small change in its price elicits very large changes in the quantity demanded.

Answer the following review questions. For some questions, more than one choice may be correct.

MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) Economics is the study of the ________ people make to attain their goals, given their ________ resources. A) decisions; household B) purchases; unlimited C) income; available D) choices; scarce 2) Which of the following is what economically rational people do? A) Respond to economic incentives. B) Weigh the benefits and costs of all possible alternative actions. C) Use all available information as they act to achieve their goals. D) Economically rational individuals do all of these. 3) Which of the following best describes the assumption about human behaviour that economics makes? A) Economics

For the following Multiple choice questions please select only 1 answer for each question and circle the letter that corresponds with the best answer provided. (1 point each)

MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.

By this the change in price will not necessarily cause a huge change in the quantity of demand by the consumers,