Question 1

The difference between the present level of income and the past level of income:

Accepted Answer

A)  saving
B)  consumption
C)  investment
D)  none C

Question 2

The relation of Price and quantity demanded:

Accepted Answer

A)  negative
B)  positive
C)  no relation
D)  none B

Question 3

The relationship between income and consumption:

Accepted Answer

A)  consumption
B)  saving
C)  investment
D)  none A

Question 4

The addition to total cost:

Accepted Answer

A)  mc
B)  ac
C)  tc
D)  none

Question 5

Given the utility function U = 5x²+12x, find Marginal utility:

Accepted Answer

A)  5+12
B)  10x+12
C)  12x 10
D)  10x +12x

Question 6

The relationship between the price of the commodity and quantity of the commodity supplied:

Accepted Answer

A)  demand
B)  equilibrium
C)  supply
D)  none

Question 7

Consumption function is given C = 35 + .4 Yd , find MPC:

Accepted Answer

A)  .4
B)  .6
C)  .8
D)  .7

Question 8

An identity between two alternative:

Accepted Answer

A)  behavioral
B)  definitional
C)  conditional
D)  none

Question 9

The difference between total revenue and the total Cost:

Accepted Answer

A)  cost
B)  income
C)  profit
D)  revenue

Question 10

The proportionate change in quantity demanded and the proportionate change in price is:

Accepted Answer

A)  price elasticity
B)  income elasticity
C)  cross elasticity
D)  none

Question 11

The first derivative of the consumption function is:

Accepted Answer

A)  marginal revenue
B)  marginal cost
C)  marginal propensity to consume
D)  none

Question 12

The relationship between quantity demanded of a good and level of consumer's income:

Accepted Answer

A)  engel function
B)  consumption function
C)  saving function
D)  none

Question 13

The ratio of the proportionate change in the quantity purchased of a good to the proportionate change in income:

Accepted Answer

A)  price elasticity
B)  income elasticity
C)  cross elasticity
D)  none

Question 14

MPS + MPC =?

Accepted Answer

A)  2
B)  0
C)  1
D)  3

Question 15

Marginal rate of technical substitution is equal to:

Accepted Answer

A)  mux/muy
B)  mpl/mpk
C)  mrsxy/mrs
D)  mrx/mry

Question 16

The measurement of economic data:

Accepted Answer

A)  mathematical
B)  econometrics
C)  business
D)  statistics

Question 17

The proportionate change in quantity demanded by a good due to proportionate change in the price of the other good:

Accepted Answer

A)  price elasticity
B)  income elasticity
C)  cross elasticity
D)  demand elasticity

Question 18

Revenue function TR = 22x²+14, find Marginal revenue?

Accepted Answer

A)  44x
B)  40x
C)  22x
D)  54x

Question 19

An increase in income lead to the increase in quantity demanded of the good:

Accepted Answer

A)  negative good
B)  positive good
C)  superior good
D)  normal good

Question 20

The first order derivative of Total Utility:

Accepted Answer

A)  mu
B)  tu
C)  au
D)  none

Exam 1: Economics Terminologies and Concepts