Introduction to Managerial Economics

Assessment due date is 20/9/2019 23:59:0

Last recorded submission : Assessment not submitted

You have completed going through the concepts covered in this week. It is time to test your understanding of
the concepts taught in this week. 

In the following unit, you will be provided with 5 questions.

INSTRUCTIONS:

Each question carries 1 point

1) Who are the essential components of a market? 1 point

Producers

Consumers

Both producers and consumers

Neither producers or consumers

2) In a market economy prices are determined by _________. 1 point

Production costs

Government bureaucrats 
 Demand and supply
Introduction to Managerial Economics

Efficiency and costs of factors of production

3) The government decides to cut down on the rate of income tax: as a result your disposable 1 point
income (amount of income left after paying off taxes) would rise. Your demand curve for jeans
(given the price of the jeans unchanged) would undergo ________.

A parallel outward shift

A parallel inward shift

An unparallel shift

A movement along the curve

4) When a country becomes more developed (i.e. it adopts advanced technologies to make 1 point
productions more efficient) the PPF curve __________.

Undergoes an outward shift

Undergoes an inward shift 

Remains unchanged

None of the above

5) When the US entered the period of WWII from the Great Depression of 1930s, the point of 1 point
Introduction
production to Managerial
of its economy _________. Economics

[Note that during the great depression there were high rates of unemployment and low income but the
war brought about a surge in the demand for various commodities thereby generating huge employment
for different factors of production]

Moved from inside the PPF towards the curve

Moved from inside the PPF away from the curve (towards the point of origin)

Moved along the PPF from point A to B (let A/B be any two arbitrary points on the curve)

Moved from outside the PPF towards the curve

SUBMIT