TMA

TMA2/ECO232 – Micro Economic Theory II TMA 2 QUESTIONS AND ANSWERS

TMA Quiz Questions

TMA: TMA2/ECO232
ECO232 – Micro Economic Theory II
Mr. Adedeji Abiodun Liadi (aliadi@noun.edu.ng )

1 If the supply curve of a commodity is positively sloped, a rise in the price of the commodity ceteris paribus, results in and is referred to as

A. an increase in supply
B. an increase in the quantity supplied  
C. a decrease in supply
D. a decrease in the quantity supplied

2 A perfectly competitive economy will yield a Pareto efficient allocation of resources because

A. prices adjust to clear each market
B. all participants are price taker
C. all participants optimize
D. all of the above  

3 If the allocation of inputs is production-efficient then

A. the MRTS between inputs is equal to marginal revenue
B. the isoquants are tangent to each other  
C. the contract curves are tangent for all producers
D. all of the above

4 Construct a market demand function from the demand functions for two individual consumers: consumer A: Q = 20 – P; consumer B: Q = 15 – P.

A. 35- 2P2
B. 35- 2P  
C. 30 – 2P
D. 35- P

5 The demand curve facing an individual firm in perfect competition is

A. vertical at the existing market quantity
B. downward sloping
C. horizontal at slightly less than the market price
D. horizontal at the existing market price  

6 A unit free measure such as elasticity shows changes

A. in absolute magnitude
B. relative to initial values  
C. in standard unit
D. over time

7 In which of the following areas is above-equilibrium price most likely to be found?

A. private secondary school fees
B. agricultural price supports  
C. natural gas prices
D. all are equally likely

8 Economists agree that the price controls

YOU MAY ALSO LIKE  TMA1/ECO247 - The Nigerian Economy in Perspective II

A. benefit some consumers who buy at a lower price
B. hurts some consumers who want to buy but cannot
C. hurt the social fabric because laws tend to be disregarded
D. all of the above  

9 Which of the following government policies is sometimes used to increase demand either in general or specifically?

A. an increase in the income tax
B. an increase in the tax on cigarettes
C. an educational campaign to reduce gas consumption
D. food subsidies  

10 Which of the following government policies will shift the supply curves for a good to the right?

A. an excise tax on the good
B. a subsidy to producers  
C. unemployment insurance tax
D. declaring goods illegal

11 . Lagos state has decided to eliminate rent controls because the market for housing is very tight. Which of the following is most likely to happen immediately?

A. an increase in rents  
B. a decrease in rents
C. an increase in housing
D. a decrease in housing

12 When is a firm most likely practicing discrimination?

A. when it fires three workers and hires two
B. when it raises prices 5 percent every six months
C. when a store stays closed on Sunday
D. when a firm charges higher prices in wealthy neighbourhood  

13 A price floor often leads to

A. black market
B. a decrease in the quantity of the goods supplied
C. a lower quality of good being produced
D. none of the above  

14 Which of the following will shift the demand curve for a good to the right?

A. a decrease in the cost of production
B. an increase in the cost of production
C. a decrease in the price of the good
D. none of the above  

15 An increase in supply is represented by

YOU MAY ALSO LIKE  TMA2/BUS427 - Business Policy & Strategy I

A. shifting the supply curve leftward
B. shifting the supply curve rightward
C. moving along the supply curve in an upward direction
D. moving along the supply curve in a downward direction  

16 If consumers expect the price of a good to decrease in the future, the usual result is

A. an increase in the quantity of the good demanded
B. a decrease in the quantity of the good demanded
C. the demand curve for the good will shift to the right
D. the demand curve for the good will shift to the left  

17 The law of supply states that as the price of a good increase

A. the supply curve shifts leftward
B. the supply curve shift rightward
C. the quantity supplied increases  
D. the quantity supplied decreases

18 Which would best describe the short run for a firm as defined by economists?

A. the plant capacity for a firm is variable
B. the plant capacity for a firm is fixed  
C. there are diseconomies of scale
D. there are economies of scale

19 If the quantity of a commodity demanded remains unchanged as its price changes, the coefficient of price elasticity of demand is

A. greater than 1
B. ) equal to 1
C. smaller than 1
D. zero  

20 Within the relevant range, isoquants

A. cannot cross
B. are convex to the origin
C. are negatively sloped
D. are all of the above  

 

I strongly advice you to crosscheck the TMA questions and answers on this blog, nounsite.com or it’s staffs will not be held responsible for any incorrect answers or TMA question.

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

Close