
ECO 6
Quiz
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Business
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University
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Practice Problem
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Easy
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20 questions
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1.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
QN=131 (17825) If a production function has constant returns to scale, output can be doubled if
a. (i) labor alone doubles
b. (ii) all inputs but labor double.
c. (iii) all of the inputs double.
d. None of (i), (ii), and (iii) is correct.
2.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
QN=132 (17861) World Wide Delivery Service Corporation develops a way to speed up its deliveries and reduce its costs. We would expect that this would
a. raise the demand for existing shares of the stock, causing the price to rise.
b. decrease the demand for existing shares of the stock, causing the price to fall
c. raise the supply of the existing shares of stock, causing the price to rise.
d. raise the supply of the existing shares of stock, causing the price to fall.
3.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
QN=133 (17866) What would happen in the market for loanable funds if the government were to increase the tax on interest income?
a. Interest rates would rise.
b. Interest rates would be unaffected.
c. Interest rates would fall.
d. The effect on the interest rate is uncertain.
4.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
QN=134 (17859) People who buy newly issued stock in a corporation such as Crate and Barrel provide
a. debt finance and so become part owners of Crate and Barrel.
b. debt finance and so become creditors of Crate and Barrel
c. equity finance and so become part owners of Crate and Barrel
d. equity finance and so become creditors of Crate and Barrel.
5.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
QN=135 (17863) Which of the following is correct?
a. In the national income accounts, investment and private saving refer to the same thing.
b. In a closed economy if national saving is greater than zero, then everyone must be saving
c. The financial system channels funds from savers to borrowers
d. People whose consumption exceeds their income are savers.
6.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
QN=136 (17864) Suppose the economy is closed and consumption is 6,500, taxes are 1,500, and government purchases are 2,000. If national saving amounts to 1,000, then what is GDP?
a. (i) 9,500
b. (ii) 10,000
c. (iii) 10,500
d. None of (i), (ii), and (iii) is correct.
7.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
QN=137 (17854) Two of the economy's most important financial intermediaries are
a. suppliers of funds and demanders of funds.
b. banks and the bond market
c. the stock market and the bond market.
d. banks and mutual funds.
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