Economia Quiz Competition 2025

What happens in a competitive market when the government imposes a price ceiling below the equilibrium price?

• Quantity demanded falls below quantity supplied

• A surplus is created

• A shortage is created

• The price rises to eliminate the excess demand

A consumer reaches equilibrium when:

• Total utility is maximized

• Marginal utility per dollar is equal for all goods

• Expenditure exceeds income

• Income is fully saved

If Bangladesh increases the Statutory Liquidity Ratio (SLR) requirements for commercial banks, what is the immediate impact on monetary conditions?

• Inflation will rise

• Banks will have more funds to lend

• Credit to private sector will tighten

• Imports will surge due to excess liquidity

In the short run, the law of diminishing marginal returns sets in when:

• All inputs are fixed

• Marginal product of labor is increasing

• Variable input increases and marginal product begins to decline

• Total product begins to increase at an increasing rate

Which economic theory is central to the storyline of the film "A Beautiful Mind"?

• Keynesian multiplier

• Nash equilibrium and non-cooperative game theory

• Law of diminishing returns

• Rational expectations hypothesis

Which of the following reflects the limitations of monetary policy in a developing economy like Bangladesh?

• Excessive money creation always results in hyperinflation

• Transmission mechanism is weak due to underdeveloped financial markets

• Monetary policy only affects fiscal balance

• Interest rates cannot influence capital flows

Compared to perfect competition, a monopoly tends to:

• Produce more and charge less

• Produce less and charge more

• Set price equal to marginal cost

• Eliminate deadweight loss

When the price of a good increases by 10% and the quantity demanded falls by 5%, the price elasticity of demand is:

• 0.5 and demand is inelastic

• 2 and demand is elastic

• 1 and demand is unit elastic

• 5 and demand is highly elastic

Diamonds are priced higher than water because

• they are sold by selected firms with monopolistic powers

• their marginal utility to buyers is higher than that of water

• their total utility to buyers is higher than that of water

• consumer don't buy them at lower price

Which of the following is included in the calculation of Gross Domestic Product (GDP) using the expenditure approach?

• Purchases of used goods

• Government spending on infrastructure

• Transfer payments like pensions

• Illegal economic activities